Income diversity means earning money from a mix of different types of work and clients. It contrasts a more narrow approach of concentrating efforts on one large client or type of work.
Reduction of Risk
Arguably the most important reason to diversify your work and income as a freelancer is risk-reduction. If you prioritize work for a small number of large clients, losing a client has a major impact on your business.
Imagine, for instance, that half of your business and earnings come from one large client. If that client cuts ties or goes under, you have to urgently replace half your work and income while keeping up with your remaining obligations.
Losing a small client is last impactful. Similarly, diverse project types give you some security that if market demand wanes for one type of work, you still have others to rely upon.
As there are no guarantees with freelancer work, steady income is an ongoing challenge. However, an effective mix of diverse clients and projects makes it a bit easier to anticipate your income level from one month to the next, which allows for greater budgeting accuracy.
Diverse income streams give you greater control over your workload and project types as well. In the more concentrated approach to work, the desperate need to hold onto top-playing clients makes it difficult to say “No.” A diverse client and project base puts you in a stronger position to say “No” when project requests exceed your threshold for work-life balance, or if a client wants you to do something you aren’t comfortable doing.
Doing the same work for the same clients all the time can get boring and lead to burnout for freelancers. Diverse work is important for people, especially creative types, who want to do different things each day to maintain a high degree of interest and inspiration.
You might have certain projects and clients that you depend on for sustained income, but others that you engage with more based on interest in the work or personal rewards.
The combination of diverse and rewarding work, more stable income and greater control contribute to reduced stress and better work-life balance. Enjoy your work and thrive on the independence that makes freelance enticing. Spend more time enjoying things that bring personal joy and family togetherness.
The major benefits of income diversity make it clear that freelancers should make an intentional effort to work with a mix of clients and project types. Doing so offers a lot of long-term advantages in income and work satisfaction.
The payment processing services offered by Payoneer are an excellent support for freelancers to efficiently collect income from diverse work.