From Feast-and-Famine to Steady Growth: How to Thrive as an Independent Consultant

Even with years of experience in the traditional in-house consulting industry, those who've pivoted to life as an independent know that it's not always easy. Our UK Community Team recently hosted a series of webinars with business coach Melisa Liberman to share some key insights on how to build stability and excel in your life as an independent. 

Melisa herself has honed her expertise over more than a decade as an independent consultant, and she's developed an offering as a business coach, podcaster, and author specifically to help others in their independent consulting journey. Melisa shared some of her key strategies with the Malt Strategy community on a few common pain points for independent consultants.

The Root Causes of the Revenue Roller Coaster

So what, exactly, is the revenue roller coaster? As Melisa describes it, this is a term used to describe the fluctuating income patterns that freelancers and independent consultants often experience, leading to financial instability and emotional stress. Beyond financial challenges, it takes an emotional and mental toll, causing constant worry about business stability and personal well-being. When things are going great, you're on cloud 9 - but on a slow month, your mood and your confidence can both take a nose dive. 

Melisa outlined six key reasons why consultants fall into the revenue roller coaster trap:

1. Lack of Business Goals and Planning
   Many independent consultants operate without clear revenue, profit, and schedule targets. Without a structured plan, business growth becomes inconsistent and unpredictable. As Melisa says, "If you don’t have specific goals for revenue, profit, and time off, you’re just hoping things will work out. Hope is not a business strategy."
   
2. Unclear or Weak Service Offerings
   If your services are too broad or not compelling enough, it becomes harder to attract high-quality clients. Consultants who take on "whatever work comes their way" often find themselves in a cycle of low-paying, misaligned projects. Her advice? "Your ideal client might not care about paying for the type of problem you solve. Find what they do care about, and develop your offering around it."
3. Neglecting Business Development
   Many consultants tend to prioritize contracted client work over sales and self promotion. If you're only focusing on developing your business when a project is about to end, you put yourself in a position to be a beggar rather than a chooser.  This can also create gaps in income and force you to take on low-quality engagements out of desperation. Melisa suggests that you "treat yourself as a client. Allocate two or three hours a week to your business development."
4. Reactive Sales Process
   Without a structured, repeatable sales process, consultants often rely on word-of-mouth and referrals instead of proactively building a pipeline of future clients. She says, "If your sales process feels like an interview, where you're hoping the client picks you, you're doing it wrong. You need to drive the process."
5. Negative Relationship with Money
   Many independent consultants underprice themselves because they view money from an employee mindset instead of a business owner’s perspective. Pricing should be based on the value provided, not on time spent. Melisa insists that you "stop selling your time. Your expertise and impact are worth more than an hourly rate."
6. Failing to Think Like a Business Owner
   Consultants who see themselves as purely independents rather than business owners often lack strategic direction. Melisa emphasizes the importance of running your consulting practice like a CEO—with intentional planning, pricing, and marketing. "You're not just a consultant with a business,”she says, “you're running the show, you're a full-on business owner."

Overcoming the Revenue Roller Coaster

With all the challenges laid out before you, the revenue roller coaster can feel insurmountable - especially if you're stuck in it already, like a hamster in the wheel. There is, however, a way to overcome this vicious cycle. Melisa provided a six-part blueprint for to help you build a stable and scalable consulting business:

1. Set Clear, Measurable Business Goals

Define specific revenue, profit, and schedule targets—and review them regularly. Instead of hoping for stability and expecting that things will naturally fall into place, make it intentional and devise a plan. 

1. Develop a Compelling Offer

Ensure your services are designed to solve pressing problems that clients are willing to pay for, and audit your communication to ensure you're consistent with your message. Avoid being a generalist and position yourself as a specialist: if you are selling to a niche market, your clients are more likely to find you.

1. Build a Demand Generation System

Create a repeatable marketing strategy that consistently brings in new leads. Whether it’s networking, LinkedIn content, speaking engagements, or referrals: choose methods that suit your strengths and your market.

1. Implement a Proactive Sales Process

Take control of sales conversations. Instead of waiting around for clients to dictate the terms, lead them through a process that positions you as the trusted expert.

1. Adopt a Strong Money Mindset

Detach your pricing from the number of hours worked, and focus on the value you bring. Your rates should reflect your impact, not your time.

1. Think and Act Like a CEO

Prioritize time for business strategy, marketing, and sales—not just client work. Treat your business as its own entity, separate from yourself.

The Secret to Recurring Revenue: Retainer Clients

Once you've identified your pitfalls in terms of the revenue roller coaster and have been able to identify them in your consulting offering, it's time to take things to the next level: retainer clients. These ongoing contracts will further stabilize your business and offer you more predictable income. 

What is a Retainer?

A retainer is a long-term agreement where a client pays for ongoing access to your expertise. Unlike one-off projects, retainers offer steady income instead of unpredictable cash flow, stronger client relationships, and most importantly, better work-life balance.

Melisa details three types of commonly used retainer models:

1. Advisory Retainers – Clients pay for strategic guidance and access to your expertise
2. Hands-On Retainers – A fractional role (e.g., Fractional COO) with set deliverables
3. Hybrid Retainers – A mix of strategy and execution

How to Sell Retainers With Confidence

The biggest challenge consultants face? Selling retainers effectively. Melisa emphasizes that retainers aren’t just about securing predictable revenue for yourself—they must also offer clear value to the client. Her biggest tip? Start with your existing clients. She explains that "the easiest way to sell a retainer is as a follow-up to a successful project, prolonging your work with a known client.”

Positioning Your Retainer Offer

Option 1: Extend an Existing Engagement
"Now that we've completed the project, I can offer ongoing strategic support to ensure smooth implementation."

Option 2: Package It as a Premium Offer
"Many of my clients opt for ongoing access after a major transformation. Is this something that you'd like to explore?"

Option 3: Offer Retainers as Part of Your Proposal
"Here are three options: a short-term engagement, an in-depth project, or a long-term retainer for continuous support."

The key? Make retainers a natural part of your business model—not an afterthought.

Wrapping up 

Melisa's expertise is invaluable for anyone looking to create or build their business as an independent consultant. Her wealth of experience has been immensely helpful already for countless members of our community. Another series of chats is in the works with Melisa coming up later this year - stayed tuned for more details! 

For more resources, check out: 

• Grow Your Independent Consulting Podcast
• Grow Your Consulting Business: The 14-Step Roadmap to Make Your Independent Consulting Goals a Reality