You're right. I touched on this a little bit. Your estimation skills have to be top notch. If they're not, work hourly for an agency so that they bear the risk

You're right. I touched on this a little bit. Your estimation skills have to be top notch. If they're not, work hourly for an agency so that they bear the risk. Use that time to hone your estimation skills. Even then, multiply your estimate by 2 and that's what you charge. If the project is risky, lots of new stuff you've never done before, then multiply your estimate by 3 or 4. The idea is that you cover your ass so that the "$10/hr" never happens. And of course, never take on projects with vague scope. Make sure everything is clearly defined. That's a skill too and should be honed as well. The key though is that the "$10/hr" project will be so painful for you though, you will be sure to never repeat that mistake.