IF YOU send me a photo to paint, you own the copyright on that photo and I need your permission to paint from it. When I paint a picture, I own the copyright on the painting. I can now use the painted image of your photo anyway I like. I do not have to ask your permission or give you royalties if I decide to put the image on items to sell, such as prints, mugs, or T-shirts.
I DO sell shirts and such on Cafepress. I get 5% commission on sales. It's pretty minimal. But I like having a theme to paint all the breeds of dogs. I have a "Sitting Tall" theme. I have an "All-Over T" theme, and just recently added a Puppies! theme.LETS TAKE the All-Over T's for example. I paint those on a 16x16 canvas- because it will print large I need a large image. This is my favorite size canvas on which to paint dog portraits. It sells for $450. If I know in advance that I will be painting your picture and using it for this project, I offer a bonus. Sometimes I offer a free Christmas ornament, but I always offer a 25% discount on the painting. That's a $112 discount. I do it this way because I can afford to give a discount- I am still making a sale. I cannot afford to give each person a free T-shirt, which would cost me $40 each. (At 200 breeds of dogs- that's $8000.) It's also a great incentive for people to order the 16x16 size, which makes us both happy.

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