What do you do when family and friends ask for free portraits?
As you are starting out, you want to build your art portfolio, so why not create free portraits of your friends and family?
But to build your portfolio, keep your free portraits limited to the types of portraits that will bring you paid work later on - baby and cute children's portraits, and a few dog portraits, especially AKC (American Kennel Club) officially recognized breeds of dogs. Portraits of men - especially older men, do not seem to spur more portrait orders. They might if you have a very corporate portrait style though - I just haven't personally found that men's portraits have brought me more work, but a cute baby portrait? You bet!
Back to the discounts. When you do a free portrait for a friend of relative, let them know that any future portraits you do for them, you'll be "happy to offer your friends and family discount of 'x' amount."
You can take a dollar amount off, or a percentage, whatever you like - but it sets the stage early on that you consider this your business, and not just a hobby.
This is a big one! they always want portraits for free... My Dad pays me full price at least, but he makes good money. My Aunt actually wrote me a bad check after I charged her 50% less than I would a normal person. Ended up costing me 400$ when the check bounced because of all the overdraft fees. I still havnt gotten paid for those portraits, let alone the money she costed me.
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