May I add a pointer here. Don;t write the guy off as a time waster! Dont get so wrapped up in your own cash flow predicament that you put your prospect in the too hard tray.
If he/she hasn't given the gig to someone else then they are likely to be still in the market for your services.
Every now and then, even if it takes a month or two, drop a mail with some news.When the clients mind is right and the timing also you will get the gig. So dont bad mouth to anyone about this particular experience.
Remember"good enough is never good enough" if you want the business you have to be prepared to go the extra bit.
We should all realise that clients really do not like laying out funds for ads or web sites! Until you have done the sums and show them the ROI. If there is obvious benefit in doing the business with you in your way then you will get the gig.
Importantly find out which demographic they wish to target. Then show them how best to attract it!
Patience!
The Baldchemist