5 Ways You Can Diversify Your Freelance Writing Business
The Art Of Not Putting Your Eggs In One Basket
Freelancing — including freelance writing — can be a risky gambit.
With no guaranteed income, clients that pay invoices late, and the stop-start nature of many freelancing projects, it’s little wonder that many leave freelancing in search of more stability.
While there will always be something inherently risky in managing your own business, thankfully, there are ways you can reduce the risk.
In a job market rife with layoffs and at-will employment arrangements, one could even argue that it’s possible to have more job security as a freelancer than a 9 to 5-er.
Sound like the stuff of dreams? It really isn’t.
These are some very practical ways in which you can make sure that you’re not over-exposed in any one area.
1. Diversify Your Client Base
One of the classic rookie freelancing mistakes is working for only one client.
If you’re doing this, then you’re not freelancing — you’re working as a shadow employee without benefits.
Experts vary in terms of the maximum income that they recommend any one client should constitute.
I think that 20% is a credible recommendation. But if your risk tolerance threshold is set a little higher, you could bump that up to 33%.
If any one client constitutes more than 33% (a third) of your income, then you’re already getting into risky territory.
What happens when that client decides to:
- Hire a full time staff member to take up your workload
- Ditch you for another freelance writer
- Stop using freelancers all together
I’ve seen all these things happen and I’ve personally lost clients because they hired my job away. Even with a great relationship with your client, you’re always on somewhat shaky ice as a freelance writer. Do whatever you can to skate on different ice rinks.
2. Diversify Your Industry Exposure
Another great way to keep things diversified is to diversify the number of industries that you work with.
This is a good reason why it’s not good to take niching down too far.
You ideally want to have a few well-defined niches.
But equally you don’t want to pidgeon-hole yourself into just working with one industry.
What happens if that industry suffers a monumental downturn such as happened to the entertainment business during COVID? All your clients might go down with it.
That’s why it’s a good idea to take a look at what clients you have on your roster. Are they all in the same industry? If so, consider adding another niche.
3. Diversify Your Geographical Exposure
I’m a massive proponent of the idea that freelancers should work with clients all over the world unless they have a compelling reason to “stay local.”
Payment solutions like Wise and Payoneer have made it almost trivially easy to do business with clients anywhere in the world.
All you need is a webcam, Zoom account, and enthusiasm to do business with clients in far-flung destinations.
Working with clients in different geographies is also another smart way to diversify your freelance client-base.
Again ask yourself what would happen if the startup scene in your home country were ravaged by some downturn.
If you had clients scattered throughout the world you wouldn’t be in this situation.
4. Diversify Your Lead Acquisition Approaches
I’ve written before (above) about the various ways in which you can find freelance writing clients.
You can find them through:
- Cold emailing (outbound marketing)
- Inbound marketing (including content marketing)
- Working through word of mouth referrals
- Advertising including PPC and print media placements
Here’s my recommendation. Even if one approach to client acquisition is working well for you, it’s still a good idea not to make sure that your pipeline is solely dependent upon that strategy.
The lead acquisition approach I’m most enthusiastic about is inbound marketing. I think that generating a way for clients coming to you is much more sustainable than having to constantly go out hunting for clients by email or LinkedIn.
Nevertheless, I don’t want to give up on cold emailing entirely. The reason: I want my lead acquisition channels to be diversified.
5. Diversify Your Income Sources
Have you heard about passive income?
If you’re freelancing, then you probably have.
Passive income is another way in which you can diversify your freelance writing life.
You can leverage the following active income sources to make money directly:
- Writing for clients
- Offering consulting add-ons
And, as a writer, you can make money through passive income sources by:
- Authoring books
- Selling course subscriptions (note: I’m not a fan of most freelance courses!)
- Investing your savings in the stock market
In a risky business like freelancing, diversification can be the make it or break it difference that can help you weather downturns in your industry, geography, or the world in general.
It can also help you weather the vicissitudes of freelancing life that are far beyond your control. Things like client hiring decisions and internal decisions about how to direct marketing budget spend.
Liked this post? Consider subscribing to this Medium publication for more tips about freelance writing from Daniel Rosehill, a freelance marketing consultant and thought leadership writer with more than 10 years’ writing experience.
