If you aren’t familiar with Elance, it is a contract bid site. Those in need of a freelancer post their needs here and service providers in turn bid on those contracts. Some people despise it. Some people love it. A lot of long-term working relationships can be found through sites such as Elance.com, but there are a few things to keep in mind.
1. One of the reasons freelance service providers do not like contract bid sites like Elance, Guru, etc. is because there are a lot of people looking to pay pennies for quality work. However, this isn’t always the case. Many people post to these sites because they don’t know where else to go or they don’t have time to research and contact numerous providers for a proposal. Only bid on those jobs that fall within your acceptable rates. Don’t waste time trying to convince the low-payers that they should pay more. It is not likely to happen.
2. Realize you are going to have to apply to many requests before you land one, especially if you are new. Take an hour a day, or an entire day, and apply to a lot of requests. Once you get a few under your belt, it will be easier as you will have feedback on your profile.
3. Tailor each and every proposal you send out. Talk about them, talk about their project, and talk about why YOU are the person they need.
4. Check out the provider before you send your proposal. Look at their feedback to make sure they pay and there are no other issues.
5. Did I tell you to stick with your rates? STICK WITH YOUR REGULAR RATES. 
You will not be happy with bid sites if you are cutting your legs out from under yourself.
Elance.com is yet another way to build up your client base if used correctly. Many freelancers that have been around for years still use it today to pad their schedule during downtime. Don’t shy away from bid sites because of the $2/hr providers, just don’t apply to them.
P.S. Another option to look into is oDesk .
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