My recent (not so good) experience as a freelancer

There is such a company that adopts the 'human cloud' concept, which is simply outsourcing the project from client to freelancers in other countries, such as China, India etc. I was one of their human in cloud.

Firstly, they do not pay advance, not even 1%. A project usually lasts for 2 months at least and they only pay after 30-45 days after client has accepted the final output. So this basically means the developer must be able to survive at least 3 months without any income.

Secondly, they happened to get a project from a website that I loved very much. So after I sent them my estimation (they would add their profits to my estimation and sent that to the client), I told them, if the client felt the price is high, I would be happy to make a discount (I explicitly stated the discount was for the client). Soon, client seemed to be happy with the original number and they signed the agreement. But my discount did not go to the client at all. They kept that for their profit.

Thirdly, for a project, they sent me a design and I made an estimation. Then they told me the design was wrong, but they already signed an agreement with the client and they asked me to do the almost totally different project doubling the workload for the wrong estimation, which downed my hourly rate to less than $30. My salary before I quit my regular job, was $100+/hour. And I charge my other clients for at least $75/hour.

So I quit. I am quite a professional freelancer, never missed a deadline and always deliver quality code. I am not a blind person and hate to be thought as one. I am not sure exposing the company's name is good here so I just want to warn all fellow freelancers. If you meet a company acting the same as in my description above, be careful.

Couldn't you have protected yourself from these things by defining some requirements in the contracts?

Sent.

Well, even in China (why did I say even :p), freelancers get advances, at least it is for me. I had freelancing as bonus too before but later I found out freelancing has taken too much time and generated way much income. Thanks to god that my other clients are 'abnormal'...

Sadly no, and there was not even any kind of contract but an NDA.

No client is worth a discount that takes your rate to essentially a worthless rate. If you know you can make $80/hr, and you let a client take you for $30/hr, or if the numbers are $10 and $2, it doesn't matter, you were taken for a ride. Do NOT let a client take you for that ride.

Make sure clients show you the same respect and consideration you are giving them. If they do not, walk away and find another. They are out there, do not disrespect yourself so much as to think they aren't.