It's always been this way - there have always been newbies to the industry offering work on the cheap to build experience and portfolio.
I did it, and I bet most freelancers did it also when they started.
It didn't harm the industry 8 years ago when I did it, and it's probably not going to harm it now really.
Basically any serious business with any sort of budget wouldn't use someone totally lacking in experience anyway, the only businesses interested will be those with barely any funds for design and any experienced designer charges too much for that sort of business anyway.
So basically experienced designers aren't looking in the same pool of customers that new designers are ...there is no competition for 'the same customers' to speak of.
It is spec work though after looking at it closely I saw a sign saying that 'for these projects' they will only get paid if the project is used. I'd recommend to any new designer that they get experience by offering design work 'for cheap', rather than working for completely free. There's no need to work for completely free on the risk your work will be bought.
Amanda








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