Around here (university town) you can find students and unemployed graduates who are more than willing to do web work for $20 - $30 an hour.

Don't do work, and don't pick clients, where your contribution is indistinguishable from that of a college student.

Are you aware that there are lots of Indians willing to do work at $5/hour? There are $10 watches in the market, but that doesn't mean that $2,000 watches don't get sold.

And there's no end of students (even students with honours degree in computer science) who don't know the first thing about programming. That's why "how to do interviews" and fizzbuzz questions are a popular topic on this site.

You get what you pay for.