To put it another way, would you want to work with someone who values your abilities to be equivalent to a guy making French fries?
It made sense for me: with two weeks of work I could live comfortably for two or three months, and I still charged way below Western market rates, so I had no problems finding clients. And it allowed me to be picky about the type of work I would accept.
What’s not to like?
I mean if it's necessary to compete in the market, maybe it makes sense to lower your rates. But as long as you can charge the appropriate rate, you should.
When you're charging less you're still earning the same amount of money for your client. So everything you charge less is you making them rich.
Its actually recurring advice here that the customers who pay you the least are the most demanding.
It can leave you in a hole that's next to impossible to get out of.
I'm happy I'm learning this right after my graduation.
When I was still living in Finland (few months ago) the market rate was usually around 80-120 EUR/h => 90-140 USD/h.
I don't see why I should charge less for my skills just because of my geographical location.
More than 80% of the World's population lives on less than $10 per DAY. If you live in one of those areas, and you can make that per hour, you can have a good life.
What's more, you're never going to be short of work, because people are going to look at you and realise you are the same skill-wise as the guy wanting $1k/day in London, so why not save some money and everybody is happy - even the $1k/day guy is happy because they are working for a client who values the work at that more than the client thinking "wait, I could get this done for less than a tenth of the price".
Over time (perhaps quite quickly once you've proven you can work well with clients in the EU and US), you can raise your rates, of course, and that's awesome for everybody.
It's just wise to not automatically presume that 10/hr is a bad rate for that individual in that circumstance - there's enough work going around for all of us that we can deal with the low-balling etc. from other countries.
And until then, if he’s getting real work and charging less then you then watch your backs, eh? Don’t get complacent. Don’t take it for granted. And don’t be miserable self-righteous assholes here.