...to do a sample first? I found a posting through craigslist.org about a photo retouching job for a photo studio. So far we have communicated through email. He asked me to revise one of my samples which I did. Then he sent me a link to make a photo look as good as work he has already done.

Where does the talk about payrates and such come into play? I need some advice from experienced designers/photographers. Thanks

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Rates should be discussed upfront and agreed upon before you do any work. If he wants to see if you are capable of the task and you are concerned about him using your finish work without payment then pdf the work and watermark it and password protect against changes. That way he can easily see the completed work but cannot use it until payment made.
Good Luck

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