In my graphic design days, I had plenty of people ask me to design flyers, posters, pluggers and more, in exchange for “free publicity” and/or “portfolio material”.
I fell for it in my beginning days because (1) I was just excited to get my art out there, and (2) I really did need portfolio material. No one is going to hire you unless they can see actual proof of your abilities.
That being said, I’d be a fool and a half to accept a “spec” project. I’ve been at it for almost 10 years now, and even though it’s not my main bread and butter, I still get unsolicited calls for work from clients I haven’t seen in years. I have definitely donated and discounted my services for good causes, and will continue to do so, but those cases are one-off exceptions to the golden rule: eff you, pay me.
When you’re good at what you do, and there’s a market for it, you will always have work.
PREACH!!!