Why Your Top Client May Be a Liability

In December, one of my biggest regular clients had to take a break from projects. That was not good news for me. At the time, that client represented a large part of my monthly income. While I had a few projects lined up for the next few weeks, it wasn’t enough to make up for the lost income. Financially, I had not put myself in a good position.

Typically, our clients can come and go as they please. Just because you have a writing assignment today doesn’t mean you’re going to have that assignment tomorrow. Given that our business is so unpredictable, it only makes sense that your income shouldn’t made or broken by any single customer. I took for granted that I’d have that income and I knew better.

I’m never so comfortable that I don’t market my services and apply for new writing gigs, so it didn’t take long to fill up my calendar. Yet, I continue to remind myself not to get complacent. A single client shouldn’t account for more than 15%-20% of my monthly income. Anything above that is risky.

I wouldn’t turn down or fire a client simply because they accounted for a large portion of my income. Instead, I’d increase my emergency savings and continue to keep my portfolio updated in case the client and I ever decided to part ways.