Of course this was communicated clearly - that the reason I would be willing to work for no pay was because my objective was to gain experience. I also mentioned that if they considered me valuable and worthwhile enough, to feel free to take me on as a "real" employee down the road.
that's not clear at all. you essentially keep say you'd "work for free", rather than "my work is worth x, let's exchange". the latter puts you on equal footing psychologically, while the former puts you at a distinct disadvantage.