A little of column A, a little of column B. When I first started editing, it was more of a hobby. I had a full time job that paid my bills and covered the necessities, and even some savings and a few luxuries. So I could afford to price myself *way* under the value of my services because the goal wasn't to make money, it was to help independent, self-published authors make better books and more money. The only reason I didn't offer my services for free is because I had to value my time at something, at the very least. My situation's changed a bit, though, and I'm relying more on the editing income for a bit more than I was before. I still am undercharging - and by a lot* - so my authors are still getting incredible value for my services. Just, by one tenth of a penny per word less than I was undercharging before now. * Consider that the low end of average on the per-word payment schedule is .005/word or thereabouts, and you have to pay that for substantive, proofing, copy, and line separately rather than my two categories of substantive and "line" (which combines proofreading, copyediting, and traditional line editing) and authors are still getting a hell of a deal.