First off, FB is amazing for promotion. I have a lot of friends, and when I log in, I'm always seeing my images everywhere. I don't have to worry about losing any money from this because FB has really crappy photo quality--you could never print from it and expect it to look good, even a 3.5x5. That being said, I give out the digitals to my clients most times if they ask--but that's something you should set up ahead of time. I like to factor it into the price--often people are willing to pay a little more for them. That being said, never give away the copyright--just give them a license for usage. The issue mostly gets sticky when you have people who want to print up your images on their own, which isn't a big deal to me in terms of money lost, but rather print quality. Images printed off the home printer, or over at Kinko's, will simply never compare to professionally done prints which I have set up, and I explain this to them.
I've found the key tends to be in offering the prints for relatively cheap. I break it out into two categories--prep work for a print, which is the photoshopping, resizing, color proofing, etc, and actual prints. The prep work tends to be flat rate (take your images well the first time and you won't have to worry about getting killed here--if they want fancy post, they have to set that up separately), and the prints I offer for 2-3 times cost, which most people still consider cheap. In all honesty, the real money comes from the sitting fee. Most of my work comes through referrals at the moment, and I've never had an unsatisfied customer (I do portraits and personal work primarily).
A good number of my clients don't want their work displayed or used for advertising, so for that kind of work I make a separate agreement and usually charge extra. This isn't giving away the copyright, but rather an agreement for which they have paid an extra fee. As far as images on a CD, for this kind of work you should never give away print-ready images--lower res (screen quality) will work fine, and you can let them know that's what they have. Who's going to use a 3k+ pixel image on their computer anyway? A lot of people do want to use them for wallpapers or facebook, though, so giving the digitals is very important if you want to continue getting this kind of work. It's not going to kill the business, but you might have to revise your business template. People still know quality when they see it, and if you provide that at a good value for them, you will get plenty of business.
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