Thankfully I cut my ties with that person very quickly and ensure all of my work was NEVER used by them. It was when I was much greener so it was a good thing to learn and enable me to set some very good boundaries
1) Never work with a friend of a friend.
2) Never work for free.
3) Never work for a start up business UNLESS it has a larger group behind it (Public/private equity group, blue chip client with a new business, etc.. is ok).
4) Never do work for a religious organisation (seriously not a good idea). Or for that matter a union...
5) If you lie with dogs you'll get flees. Never work on a project you wouldn't want other clients seeing as a client of yours on your Portfolio.
6) Never work with a company where they can't speak your native language... Cheque time comes and "miso soli me no undastandy".
7) Be choosy about who you want to work with. Talented designers will always find work while talentless designers wont.
I found in experience if you price yourself a certain way you tend to loose the "bottom feeding clients" as I like to call them. It also means the people who take up the service generally understand the price positioning thus have an idea of intrinsic value assigned to it.
Here's a links I've found rather amusing/helpful:
10 Client Personalities
Bad Clients and How to Avoid Them
I also forgot about this gem of a client