As someone who spends a good amount of time online, I see wannabe web designers out there that charge rediculously low rates for their services. It is ok to advertise promotional rates for work that will take a couple hours to do but when you consistantly put your brand out there with a reduced rate, you are telling your customers what you are worth.
Many web designers go to school for graphic design, and html which costs money to attend. Other professional designers learned on their own and spent many hours becoming an expert in their craft. Because of this, you have to assume that the designer is worth more than a few dollars an hour for a website.
The problem comes in on websites like Craigslist.org which is a haven for cheapskates posting computer gigs where they ask for a high quality product and have only $25 to spend. Some web designers who desparately need work actually answer such a crazy ad. I recently came across a post in a forum on OpenDesigns where some joker posted that he needed a redesign on a dynamic gaming website and he had $25 to spend along with a link credit on the website. First off, let me clear this up. A link credit is expected traditionally. A designer owns the actual work, therefore you have a license to use the website that you contracted the designer to create. You do not own the design though, meaning that you can own the actual content on the website but the design and coding is licensed to you unless specified otherwise in your design contract. That being said, a link credit is not a payment. Additionally, you should have seen other designers jump into that post telling that guy not to be cheap, and to use an open source template because $25 will not cover a redesign. To be honest with you, most designers charge you just to open up photoshop or dreamweaver.
I also notice many people telling designers in their gigs that they want a free mockup. A mockup is a design layout created in photoshop that shows what the website will look like. A mockup is just an image, usually a JPEG. The actual mockup process is lengthly. You have to create all of the graphics in photoshop and depending on the intensity of the graphic nature of the website it can take hours! Why on earth would a designer do that for free hoping that you will pay them to code the website?
All of the above issues are a direct result of student designers or low budget designers that answer such ads and work on the client’s terms. As a designer, you set the terms. You specify that you charge $35 an hour or whatever. You specify that mockups are billable. You specify that the payment terms such as a deposit and escrow are a requirement. As a professional in your craft you have a responsibility to honor others in your industry.