You should demo the kind of work you want to be known for. If you want oil portrait commissions, demo an oil portrait. I also set up one or two other completed portraits, in frames on easels, beside the one I'm working on.
I have found at public demos that people only start getting really interested in what I'm doing when it's almost finished, so I bring a piece that is pretty far along to work on. If you're nervous about likeness and accuracy in such a high pressure environment, bring a piece where the face is done and you can work on the clothing or background.
I also found that it's an acquired skill to work in a noisy environment with lots of distractions, and that I didn't get much done on the painting. No matter, I was there to meet people and hand out lots of cards. Be sociable.
I ask for a set up that keeps kids away from the wet paint (with a table between me and the crowd, etc). I put my portfolio book on that table, along with my cards.
Have fun!
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