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"C-O-N-T-R-A-C-T-O-R", not Consultant
What he did was classic for someone who has not yet distinguished in his mind the differences between selling contract services and "consulting". He would be wise to a) find other clients, and b) review the IRS' independent contractor standards, c) learn basic sales skills associated with either consulting or contracting and determine which group he most closely identifies with, and d) purchase errors and omissions insurance.

Dude, welcome to the roller coaster of self-employment! Strap yourself in and hang on for the wild ride...and if you can't cut it, don't wait too long to turn your head to the side and .... err.... yell "Let me off this ride". Gaps in full-time employment these days filled in with "consulting" that don't show a real commitment to consulting won't be looked upon as anything more than "gee, he tries a lot of things but doesn't stick with them for long" from interviewers and decision-makers.
Posted by AskMariaTodd
Updated - 26th Jan 2012