Monday came and went. Then Tuesday passed. By Wednesday I was wondering where my weekly assignment was from my anchor client. So I reached out and learned that the project was on pause indefinitely. 

I might have said a really bad word. Ok, I did say a bad word. But it super sucks when an anchor client goes on hold. And this is a project that I really liked both the work and the people. Not to mention I earn about $300 an hour in a proect rate. So it’s justified. 

Thankfully I had listened to my own advice, which I don’t always do. The client only made up 15% of my monthly income—not a huge chunk of the pie. So while it sucked and my income will be lower in February than I expected, I am still able to meet my financial obligations. If the client doesn’t come back, which is possible, then I have a hole I need to fill. But since it’s a lower percentage than it could have been, then it’s realistic that I can find a single client relatively quickly to replace them if I need to. 

If you’ve had this happen recently—or it happens to you this week—then you are not alone. In fact, you are likely in the majority. Things are a bit uncertain right now. I keep hearing about writers who are losing clients. Or having entire projects shut down. 

I think it’s super-duper important for each of us to spend a few minutes taking an honest look at our client percentages so that we know our current risk level. And if the risk is too great for our current financial situation or peace of mind, then there are steps that you can take. And my advice isn’t what you expect.  

How much should a single client make up?  

Each writer’s situation is unique. But I tend to recommend having no single client make up more than 20% of your income as a good rule. 

More specifically, you should not have a single client making up more of your income than you can afford to lose in a single email. You want to be able to still pay your light bill and your mortgage without dipping into your savings if you happen to lose a client. 

You want to reserve your savings for those really bad times when you lose multiple clients by no fault of your own at the same time. And that often happens in January when you are paying off credit cards from Christmas. Or at the beginning of the new fiscal year just as you come back from a vacation. At least that’s what always happens to me. 

However, almost every writer gets into a situation at some point where they have more income tied up in a single client than they should. And it’s not the end of the world. The most important thing is knowing your percentages, so you are aware of your risk. 

How to check your client percentages  

If you completed the exercise in my post earlier this year Taking Stock of Your Clients for 2023, then you are ahead of the game. Just take a few minutes to look at your client percentages and hourly rates to make sure it’s all up to date and hasn’t changed too much this year. If you haven’t, then take a few minutes to do it this week. 

Sort your list based on client percentages and start evaluating the clients that you have at the top of the list. Ask yourself what would happen if you lost that client today. How does that affect your immediate financial situation? Then look at what happens if you lose the top two within a short time period. Could you manage without them, at least temporarily? 

Next, ask yourself how quickly you could likely replace the income. At the beginning of my career, it would likely have taken me a few months. But now that I’m more established, it usually doesn’t take me too long. If you are able to quickly replace a lost client then it’s less risky to have a higher percentage client than if it will take a bit. 

Each person’s answer is going to be different. And each person’s risk tolerance is different. And the key is looking at the numbers, so you have an accurate picture. And then honestly think about how big a problem it would be if you lose a client. 

How to reduce your risk 

You are likely expecting me to say that if your risk is too high then you need to take less work from that client. Nope, that’s not my answer. I wouldn’t take on MORE from that client, though, because that causes you to take less work from others. 

Instead, you should look to decrease the percentage of your income from that single client by INCREASING your work from other clients. Ways to do that include actively looking for new clients, such as sending out LOIs and asking current clients for referrals. But the best strategy is to ask existing clients for more work. Let them know you have availability and you want to know if they have any other projects for you. Also, ask if there are other departments or clients (if it’s an agency) who need help. 

Yes, it will take some effort. But you can get additional work, then the percentage that the one big client makes up will get smaller. And even better, you’ll have a higher total income. But what if you don’t really have time for more clients? Then I would look to see if you have lower paying clients (check your client list again) that you should drop to replace with higher paying clients. And if you don’t, then look to see if there are tasks that you can outsource to give yourself more time. 

And if you don’t want more work or more clients, then that’s okay. Just knowing your risk puts you ahead. If possible, I would recommend putting more money in savings until you reach the amount you make in a month (or three) from your biggest client—so you can continue to pay yourself that income for a while if you happen to lose them. That buffer may give your some extra peace of mind and security as you look for new clients to replace them. 

Losing clients is a part of freelancing. It just happens, and usually, it’s due to no fault of your own. But it still stinks. By taking a few minutes to figure out your risk and then make a plan, you will be less stressed when it happens. I promise. 

How do you track client percentages? What are your tips for reducing risk?