Play to Feets answer was even better than RedKards.
The simple answer is that as long as coaches, parents and clubs want to allow verbal abuse of referees at games, there will be a shortage. I was a referee for a long while, forced to retire after injuring my leg while playing in a men's league game. A decade ago, when there were not enough refs for adult "Mexican" League games, the solo center pocketed a full $75 per match. Not a single ref liked that, it was not as safe for the ref or the players as when there was a three man crew, when the center would get $35 and the lines $20. Youth games are not normally as bad, but can be really rough, particularly on in experienced refereees.
Oh, and the answer to why there were 3 refs at a "friendly"? Perhaps the club or association requires it because of liability. Our club requires at least a certified, neutral center to be officiating at all scrimmages, even between teams in the same club.
>>>>Are youth referees overpaid?
Absolutely not, as demonstrated by the lack of people willing to perform the service at the current rate of compensation. There is a huge shortage of qualified adults/teens who are willing to be belittled, cursed at, and otherwise verbally harassed in exchange for $30-$40 for 90 minutes of work. Because demand for referees far exceeds supply, Associations have no choice but to utilize teenagers who are more willing than adults to accept the verbal abuse. If the rate of pay were decreased, you might not lose the high quality adult referees because they, for the most part, perform the service based on their desire to "give back" to the sport and because of their love of the game. You would, however, lose some adults and some teens.
This is simple economics, folks. Increase the amount of compensation paid for a service, and more people will consider providing the service. Decrease compensation, and fewer people will provide the service.
Alternative No. 1 for those that want to save money on referee fees: use a single referee rather than three. Alternative No. 2: use volunteers (good luck with that one ).<<<