[gexla]

It's a market like any other. From my limited experience I find that the most qualified generally gets the job and rates aren't as important. In some cases I have found jobs in which people from low wage labor countries are charging more than I would have charged for the same thing because they are clearly trying to estimate something that they know nothing about and playing it safe in their quote. In these cases I'm basing off my hourly rate for something I know exactly what needs to be done but I actually jack up my rate based on these other quotes because I don't want to look like the cheap guy. ;)

So, there are good jobs on Elance and Odesk. There are also some real gems. Niche areas are good because there is less competition and the competition you do have may not be strong in that area. Developers posting jobs can typically see past the B.S. and are willing to pay. They know that hourly rates aren't necessarily important and support / flexibility / communication is worth more in project rates. Just because someone charges low, doesn't mean you will save time or money.