As I continue to grow my portfolio with new and existing clients, I have learned that a good mix of offline and online clients is the best way to maintain a steady workflow. I have noticed a ebb and flow of work from both areas. As I see it, when the projects for online submissions lull in quantity offline clients seem to pick up. While I can’t land every project online or offline, I know having diverse geographic projects has helped both types of clients to choose me over others.
KDoyleDesigns 
As a fellow designer I too and exploring the freelance market, mostly right now working directly with temp agencies while having a handful of my own clients. I have never tried out eLance or any of the other websites mostly because I was concerned having to bid low on projects and not getting paid. So far have you had a good experience in both of these areas?
My impression is that businesses go on there to get work for next to nothing.
Yes its true I had to low-bid several projects initially to build up my rating in the freelance community. But only for a few small projects, and the rate or fixed price I charged was similar to what I would have charged when first out of college. After 6 months of consistently bidding on and winning work. I have have managed to build a satisfactory rating, I am now being requested to bid on projects by higher paying clients who provide quality projects. I have managed to establish some ongoing-relationships and luckily payment has never been an issue. Most of my work has come through ODesk.com and I have remained busy enough that I haven’t had the time to bid on too many projects on Elance.com