There’s no doubt that the ebb and flow of projects is one of the most frustrating and nail-biting aspects of being a freelance professional.
But for many freelancers, it has also become an accepted norm. And that’s a shame.
Yes, a certain degree of volatility is to be expected. Most of us can’t “store” client project opportunities like nuts for the winter. Either we have the availability or we don’t.
But the majority of these ups and downs can be avoided. And no, you don’t have to be a seasoned pro to smooth out your revenue stream.
Here are 4 simple habits that can put an end to most of your revenue volatility.
#1: Market Yourself Continually
Smart and steady self-promotional activities are absolutely critical if you want a smoother revenue stream. Marketing yourself and your services (even when you have enough work) ensures that you always have potential clients knocking on your door.
I know. Easier said than done. But waiting until the well dries up before revving up the marketing machine again is certainly not the answer. By the time your campaign starts generating results, you may very well have other projects on your plate. Which means you’ll have to turn down opportunities you worked so hard to find!
#2: Strive to Land 1 or 2 Big Clients
Make it a point to pursue a handful of carefully selected large companies. The business from just 1 or 2 large clients can virtually offset all of your business volatility.
That’s because larger companies tend to have more projects. And many big companies view freelancers as an essential resource. This is especially true during tough economic periods, when hiring freezes (and layoffs) are more common.
#3: Keep an Accurate Project Schedule
Besides the obvious benefits, a good schedule can also help you fill in future dry spells. For instance, earlier this year I noticed that I was about to wrap up a few projects and I didn’t have much going on after that.
I then remembered that one of my clients had a couple of non-urgent projects they wanted me to work on at some point. So I called the client to let them know of my upcoming availability. They immediately asked me to move forward on those projects. That took care of my potential dry spell.
#4: Build Your Savings
I know it’s common sense, but nothing will ease your fears and doubts like money in the bank – enough to cover a few months’ worth of household expenses. This will allow you to sleep better at night. It will help you stay focused when you hit a dry period. And it will keep you from pursuing work that’s not right for you (but that you might otherwise accept if you were desperate).
What are you doing to smooth out your revenue stream?
{ 4 comments… read them below or add one }
Hi Ed-
Your posting was of particular interest to me since I’ve weathered a relatively volatile summer and have seen my steady flow of work slow to a rather sporadic drip. Almost all of my clients consist of marketing, ad and graphic design firms. My work has been well-received and I’ve maintained excellent relationships with each client, but it’s been explained to me that their own business had slowed with the advent of summer. I’m naturally glad to see the approach of fall, but I’d like to avoid the same dismal situation in the future.
I’ve simply struggled to land the bigger corporate client in spite of numerous conversations with various marketing directors. I assume my problem is a common one, but I’d be grateful for any suggestions for alternative approaches when it comes to catching the bigger fish. Thanks for your time!
Jeff Thompson
Jeff – Don’t give up on the strategy to land one or two larger clients. Don’t give in to this “it’s hard” talk. I’ve made that mistake too many times in my life (believing this kind of negative talk).
Of course it’s hard. But it’s not impossible. Not at all! You need a concerted effort. I’m talking direct mail, phone, networking, smart word of mouth — you name it. Pick 50 – 100 companies and go after them aggressively for at least 2 years. You can’t help but succeed if you do that.
On the issue of summer slowdown, the best antidote is to continually market yourself as if we were in the middle of the Great Depression. Don’t stop, even if you have more work than you can handle. Better to turn down work weekly than to have to continually suffer through stressful peaks and valleys.
-Ed
And instead of turning down work if you are too, would it be a bad idea to recommend other freelancers (whose work you know and trust)?
Savvy wisdom, Ed. I particularly like #1.