DA, what would be the drawback to having the product done instead of taking the commission and then working on it? Time? Money? Both?
What I don't get is paying for something you haven't really seen. Sure they have a history of product, but that doesn't necessarily mean the commission work will be to your liking.
Well, the way I USED to do things was that I would pay out of pocket to make a prototype... which would sometimes take me a while... since I don't have much money to begin with.
I would then offer to remake the proto in a small run of figures and take orders. Sometimes the orders would get away from me, as I added figures to the run here and there for buddies and good customers. This was a bad idea and really didn't work.
I did it this way because I needed money for the parts. Some figures can cost up to $90 or more for parts alone, so imagine trying to make 10 of them to sell. And then imagine making them, thinking they will sell... and then offering them...only to have them NOT sell. You are then out a grand, and you feel stupid on top of it.
The downfall to this plan was that some parts would take long times to arrive, life would throw a monkey wrench into your plan, family trouble, etc. Or for me, school became a factor. I don't have much time available each day for painting... and so I got behind and left my customers feeling cheated and angry. It sucks. I don't recommend that system to other customizers.
Honestly, I don't think there IS a right way to do custom business. Unless you have money to start with, you are just building a castle on top of a frozen river. Eventually you will either grow too big and crack the ice, bringing your castle down OR you will stay too long and the ice will melt underneath you... (life happens, time goes on, etc).
Really, the best way is to offer work that is finished... and when you sell that, invest in your next figure... but most people won't do that, because you may lose the investment. Either way, you are bound to fail eventually.