And I believe much of that is where you live. I happen to live in a small town in the South. Portraiture is very big here, and I feel quite confident that I am not viewed as a starving artist. I may not command some of the high prices that I have seen on this site, but I would guess that my average sale is about $2,000 give or take. I never advertise or even think about an agent so that I can keep my prices low (with the exception of the designer house) 99% of my commissions come from word of mouth, and I would dare say that 90% of those commissions come from prominent and visible families in town. I know these people and am extremely confident that I will not "get stuck". THEY wouldn't want that reputation. OK, so maybe I am not branching out too much, but with two small children, I can only handle so much at one time, and 1-2 portraits a month is about all I have time for and that is about what I always have booked.
I suppose if I were dealing with people that I did not know...or at least know who referred them, I would feel compelled to use a contract. I have a contract in a file, JUST in case one of those people come along that ask for one. But in the meantime, I will continue to work as I do. It may not work for everyone, but it works great for me and I don't feel like it makes me any less professional.