This is going based on the fact that apart from my University work, I don't have a great deal of freelance work to fill a portfolio so I can't really choose to leave stuff out.

I've heard people say before that you shouldn't finalise a design for a client based on what pleases you aesthetically but what the client wants but I've often done this myself in the past were I thought a logo looked more interesting a certain way to only have the client come back to me and say something like "oh, it's nice, but it just looks too fancy and I'd like it this way..." and they will want me to use very basic, tacky imagery and too many colours that make it look like it was made by a high school student (at best) as the client knows nothing about design and there's only so much I can do to make there idea somewhat acceptable. Sometimes I finalise a design with them that they are over the moon about but I think it looks average at best and sometimes bad.

I can understand this, as obviously it's the client that's using your work so if they don't like it then you have failed your task and they won't want to use it but I don't want to use it in my portfolio as I don't want future employers/clients thinking that this is all i'm capable of.
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Where do you stand on creating work for a client that doesn't please you aesthetically? do you ever turn work down as you don't want it to ruin your image as a designer or do you just smile, make the design and take the money?