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It's hard to do (if they are a client you've been earning fees from!), but if you are thinking about it and wondering if you should, it's probably time.
Are the reasons you're considering cutting ties able to be discussed with the client? Depending on your relationship with the client, you could always have a conversation about your concerns, and see if they have any interest or ability to change things.
If you get to the point where you have decided to cut ties, I can't imagine that much more then a call or email stating that you are no longer interested in recruiting for them is needed. If they press you for more details and you feel obligated to respond, a simple explanation like " our company is moving in a new direction that doesn't allow me to provide you the service you deserve" should work.
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