Today, while browsing the job sites for my area I started to notice a, what seems to me, bad trend. Of the few postings that detailed the salary, all of them were offering around 1000 euros (1300 USD) before taxes for people with 2-3 years experience (searched mostly iOS and Rails). This comes around to 700 Euros after taxes or so.
While I know the economy and country (Portugal) is in the crapper, this saddens me. I actually am doing a bit better but even this weekend I met with a client to discuss their need for a custom backend which I estimated to be around 1500-2000 euros development (and I lowballed) I also just got back that maximum he was willing to pay was 500 euros.
I read here in HN that talent is hard to find now a days everywhere, but from everyone I talk to here, those are about average salary for developers. (A couple years ago a manager told me their programmers with 5+ years of experience were quite happy to earn 1000 euros after taxes)
Is there anything I can do/say to try and convince clients that good programming skills are actually worth paying for? Any book recommendations? Or (and for people that know the kind of mentality I'm talking about) the only way to actually start making some more money is to look only outwards, either for remote work to people in the UK/USA or create and market a product to those markets? (I already do a bit of freelancing like this but it's a lot harder to get clients)
Those numbers do look pretty bad but I suppose that may be the reality of the market there. I'm a U.S. citizen living in the Philippines but there is no way I could / would work on local wages here. So, all of my work comes in from outside the Philippines.
In the meantime, there is probably something you could do with what you have there. Rather than looking at budgets being too low, instead look at what you can deliver for those budgets. A budget of only $100 is great if it's something which only takes you an hour or two to knock out. So, client needs a custom back-end for $500, then install Drupal and get as close as you can with add-ons and as little custom development as possible. A PHP based CMS may not be your idea of fun, but being flexible is what will allow you to survive.
Going independent means that you will have to build a brand for yourself. Position yourself as an authority and do whatever you can to stand out from the crowd. Build exposure by writing code which others will take notice of and use. Place yourself in communities where paying clients might be hanging out at. Branch out from your current skill base so that you can get exposure to things which paying clients are looking at.
For example, Wordpress support forums are loaded with people trying to get help with things they are working on, or looking for developers to take on their projects. Anything e-commerce is also huge because clients are looking for ways to build carts / payment systems into their sites. I see Twitter posts all day long where people are asking for help or looking for developers. As others have mentioned, Elance and Odesk are decent places to look also.
Don't get tunnel vision. Open up your eyes and get creative.