I design websites for small businesses using WordPress, and it works great locally. I'm currently focused on building my business plan, and plan of marketing, but once I get that stable I should have a great business going! I wouldn't suggest giving your clients a free website up-front, but I guess that's up to you as the designer. I personally charge clients $400-$1000 for a re/design, then they occasionally hire me on to make changes / updates at $20 / hr. rate.
I'm trying to figure out how I can turn my clients into residual income using re-seller hosting and maintenance contracts. Any resources for building your residual income as a freelancer would be greatly appreciated!