freelance paradigm

Basics:
Photographic equipment is divided in three basic levels; low-end (entry) level, middle level, and high-end. Every class of equipment (compacts, SLRs, lenses, bags...) can be divided into those three levels, no matter their basic properties. You can get 70-200 zoom at entry level, middle level or high-quality pro class. The same goes with cameras. This levels reflect the amount of money you are willing to pay; basically they reflect how rich you are

We need only one more parameter which could describe how serious you are about photography. It turns out, that the number of photo sessions you do in a year can very well reflect your seriousness, your knowledge and your skill. People who take less photo sessions are statistically less skilled than people who take photos more often, because they practice less.


Calculation:
Low-end: 7 Euros per number of photoshoots per year
Less serious: Let's say you take photos only at celebrations, birthdays and vacations. You shouldn't have more than 30 photo sessions per year which results in 210 Euros (30 x 7 = 210) and that indeed is the price of entry level compacts which are designed to meet those needs.

Intermediate: Now you shoot photos at social occasions (like the ones above), but you do shoot some "artistic" photos as well. You do about 100-150 photoshoots per year so you should invest about 700-1050 EUR, which will buy you an entry level SLR and some basic lenses.

Very serious: You take photos on daily basis with about 200-300 sessions per year. It is reasonable, that you expect more from your equipment, because your extra practice gives you skill to really squeeze the most out of it. I think you should then invest about 1400-2100 Euros. It will buy you a better SLR camera (like Canon EOS 50D or Nikon D80) with some better lenses. Anything less than that will severely limit your creative potential.

The same reasoning can be applied for the next two categories of photographers, who share the same needs but have more money to spend:

Middle level: 10 Euros per number of photoshoots per year
Less serious: 30 x 10 EUR = 300 EUR (a better compact)
Intermediate: 100 x 10 EUR = 1000 EUR (middle class SLR)
Very serious: 300 x 10 EUR = 3000 EUR (middle class SLR with good lenses)


High-end level: 14 Euros per number of photoshoots per year
Less serious: 30 x 14 EUR = 420 EUR (good compact or low end SLR)
Intermediate: 100 x 14 EUR = 1400 EUR (middle class SLR with a very good lens)
Very serious: 300 x 14 EUR = 4200 EUR (high class SLR with high class lenses)


I hope I didn't make any logical errors along the way, because the figures seem quite reasonable to me. The idea is to make a logical relation between your skill, frequence of shooting and the size of your wallet. It is not reasonable to buy a 4200 EUR worth of equipment if you only shoot 30 times per year, because I don't believe you are likely to be skilled enough to make the best of it. You can make just as good photos with much less. If you shoot more, then paying more will give you a higher platform for your crativity.
Please feel free to discuss it below.