I made this mistake the first time I ventured out onto my own and did some contract work. The thinking was that it'd be a nice way to give them something concrete to play with as we vetted the ideas / flows.

But, as you describe, from a perceptions stand point, it was the worst thing I could have possibly done. It went from a very happy client, to a very unhappy and confused client when progress "stopped." I actually started recording development work as a way to make them understand all the invisible stuff which goes on behind the scenes.