I spent some time with a fellow freelancer recently, and he showed me a spreadsheet of his recent and current clients.
Better still, he showed me how profitable each of those clients were.
I have created spreadsheets like these myself, and was fascinated to see how similar his was in terms of the spread of profitability.
Let me explain.
On his spreadsheet he had a couple of really profitable clients, several middle-range clients, and a couple of clients that were barely profitable at all. His mix of clients was very similar to what I have seen in my own career as a freelancer.
So I asked him the obvious question, “The two least profitable clients take up way too much of your time for too little reward. So why not fire them?”