Enter the Freelance Portfolio.
Your Freelance Portfolio helps you balance the risks and rewards of your freelance life, just like a financial portfolio. It helps you weigh how much time and energy to “invest” in projects, and change the mix depending on the work market and your income needs. It lets you decide how work fits into your plans, not the other way around.
You want to balance your Freelance Portfolio so it meets these three goals:
- Have enough clients of the right kind: not too few and not more than you can handle, who pay well and/or can advance your career in some way.
- Bring in enough steady income to reduce cash flow highs and lows.
- Meet your total income goals.
The Freelance Portfolio has four levels:
Level 1: The Blue Chips
Your Blue Chips are the core of your Freelance Portfolio. Like blue-chip stocks, they’re your buy-and-hold investments: major clients (large or small in size) that you maintain and monitor carefully as sources of regular income.
They’re your income anchors. Blue Chips are your hedges against marketplace rock-and-roll. They keep the lights on. They are your priority.
Level 2: Growth Investments
This is the growing edge of your business and your Blue Chip incubator. The gigs turn over faster than Level 1 and generate income by their volume while enriching your client base. The more you nurture Level 2, the more it can stabilize your career.
You’ll get Level 2′s from client referrals, other freelancers, and your own prospecting, so it’s about networking. Over time, as you expand and refine your strategy and bring in more and more projects, your net return will be positive.
Level 3: One-Shots and Long Shots
These are opportunistic gigs that fill time or income gaps (as in “I need money now!”) or let you make the gig-getting aspects of freelancing more plug-and-play.
Level 4: New Ventures and Growth
Level 4 is in some ways the most speculative part of your Freelance Portfolio, but it’s also the most exciting. Here, you’re building the services, products, and alliances that will bring income in the long-term future.
These are ventures you’re creating on your own or with others: developing a seminar, pursuing speaking gigs, teaching classes, writing a book, collaborating to offer expanded services. As one freelancer said, “A huge factor in my staying in business was that I’ve reinvented myself many times while staying in the same industry.”
How to Balance Your Portfolio:
Imbalance: Your pipeline’s full, you’re working like crazy, but barely making ends meet.
Rebalance: Reassess your portfolio for Goal 1.
Imbalance: You’re making a decent income, but the payments are so far apart you struggle to meet your monthly expenses.
Rebalance: Focus on Goals 1 and 2.
Imbalance: You’ve got some great clients and gigs, but the money’s lousy.
Rebalance: Retuning all three goals may be necessary.
With a balanced portfolio, fits and starts in work can be balanced with other prospects and possibilities that are quietly simmering. If a project gets back-burnered or a client pays late or fades away, the freelancer is more likely to be able to quickly turn up the heat and land a gig or two to fill the gap.
A solid Freelance Portfolio enables you to focus on what matters: doing your best work and honing your craft. There may still be dry times, but odds are they’ll be fewer and shorter. Your portfolio also lets you see holes and change your goals—whether it’s landing or replacing a Blue Chip, growing your network, picking up a new skill, increasing your cash flow, or building your future with new products or services.
How about you?
How do you balance between different types of clients?