Finding targeted customers like finding gold?

Why would they pay you $499 for a WP site when they can get it done on any freelance site for $100? Seems like your out of touch with the business.

Please don't take me the wrong way, here: I promise I don't mean this rudely or critically at all, but I can't help thinking, reading your post above, that your long-term solution may lie largely in acquiring better-paid skills.

The problem with the market in which you're currently competing for business is that it's super-competitive. Huge numbers of your competitors live in countries in which $10-$15 is a "decent day's pay", and that's reflected in their prices, which are typically very much lower than yours. They speak pretty good English, have broadband internet, and are - increasingly - a highly skilled and professional workforce. It's truly a global marketplace - and that can have some disadvantages for service-providers, as well as many advantages for consumers, in "first world" countries.

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Bsurb,

Since you're having a difficult time finding customers who'd be willing to pay $499 for a service that many freelancers in say oDesk will gladly do for $100 or so, and also since the two posters above don't have any idea how you can sell a $499 service if many freelancers, mostly in developing countries, charge around $100 or so for the same service, then:

You and the two others who posted above may be looking in the wrong places to find customers that need website design / development services and are willing to pay $499 for a WordPress project, or even beyond that. Let me ask you this question:

Why target prospects who are already looking into hiring freelancers at freelance sites and at Web forums like this one, thereby most likely having around the same budget as the average prices charged by the freelancers in those freelancing sites and in those Web forums ($100 or so for your $499 service), INSTEAD of directly contacting or networking with local companies (your prospects) that don't know or don't want or haven't thought or aren't used to hiring a freelancer in similar freelancing sites and Web forums for their project/s, which may most likely be more than willing to pay you $1,000 or so for your $499 service, more so if you register your own company so you won't be in the same league as those freelancers (I don't know about the company registration requirements in your country, but if you check it out, you'd most likely be surprised how quick and easy it is to register a company)? Here are two relevant real world examples:

Two years ago when my 9-year old global ICT consulting company here in the Philippines still offered Web design / development services -- We closed a significant number of website design / development projects per quarter, at an average price of $3,000 per project. These were mostly for local start-up companies and non-governmental organizations here in the Philippines that are in our local clientele networks. And, these projects can easily be completed by someone in oDesk for say $300 to $500 -- Many think that, since these companies and organizations are in a developing country (the Philippines), then they couldn't possibly have decent budgets for such services, but our results show otherwise; and

My friend who owns a local advertising company that offers Web design / development services here in the Philippines recently closed a $5,000 website design and development project for a local non-stok, non-profit organization here in the Philippines, and this project can easily be done by someone in oDesk for say $800. Yeah, customers with decent budgets for similar services are out there, even in developing countries. You may only need to network with the right groups, speak with the right people and strike mutually beneficial partnerships with the right companies...

It's fine to get some business from lower-priced markets. But you'll do better long-term to raise your prices and go after better clients. Some small businesses pay $499 to stock the lunchroom vending machines. Which has more impact on the business - a good site or a Snickers bar? Check out the offline forum here for steps to get better clients.

Ahh I didn't realize their was an offline part. And Brutecky, I am trying to reach out to local companies here more than online. Local web design companies are charging over $1,000 per site..... When I can cut that in half and do the same work if not better.

I can almost guarantee that these local companies don't know anything about forums or freelancing.

There are lots of businesses around my community but when I approach them about if they have ever thought about making a website, they act intimidated. I don't get it...

Maybe offer something as a lead in like video seo services or Facebook page creation that you can offer very inexpensively, get your foot in the door and show the client your value.

I was selling WP sites for $399 and more up to a few months ago until I decided to just stick to Internet marketing of various goods, building a list etc. This gives me more freedom than local marketing ever will.

Stick to it, increase your skills by learning seo etc and you definitely can make the kind of income you desire.