"Um, what happens if the client doesn't pay the artist for their work? This is why artists ask for some payment up front. It's a way to protect themselves from getting screwed over as well."They can ask all they want. But speaking as someone who's worked extensively in hobby and professional game dev, I've never, ever paid someone in advance. And I've never met a pro artist that has expected this. It's just not how it works in the industry.
Artists can protect themselves by asking for a contract specifying their workload and pay rates, or an informal agreement to the same effect. And just generally taking on projects with devs that seem to be established and have a track record. But actually paying an artist in advance is a terrible idea, not just because of potential ripoffs, but because it kills their incentive and motivation - they already have the money. If you pay artists in advance, watch - you will get lazier, less polished work, and you will get it later, because they will prioritize toward getting new money coming in first. It's just a bad, bad idea.
"With graphic design work, I read somewhere online that some people take payments in little increments. They do a sketch, get some payment; do the actual work, get some/the main payment; any revisions or further editing, get more payments."Absolutely! This is very common and a great idea, especially for larger tasks. In fact I'll often price per image, and allow the artist to invoice at any time for the images they've finished (and had approved) up to that point. So long as payment always follow the tasks, assignments can be broken up however the artist and the company want to.
"When working with a new client, it's a good idea for the artist to arrange a small deliverable and bill upon its completion. This approach establishes trust and manages the artist's risk without having him/her to ask for money upfront."More power to you as an artist, if you can get them to agree to this. I never would, nor would any of the other developer I know.
"Big projects often require some percentage of payment up front..."I absolutely disagree. Honestly, I've overseen projects that are massive, with 50+ people working on them. Nobody gets paid in advance. That is not an expectation that flies in the industry, only in the hobby and small dev communities. You shouldn't ever need to do that.
Look at the situation with Josh, and don't see it in terms of 'Now I won't deal with this artist.' Look at it from a perspective of, 'How can I takes steps to ensure that NO artist does that to me?' Discuss and decide upon rates with the artist, give the assignment, critique and give feedback when the art comes in, and only when the work is 100% approved should the artist be entitled to compensation. It puts a little more pressure on them, but if you're someone that can't wait a few days for cash, you're in the wrong field. Especially when you get to larger publishers, where they work on 'net 30' or 'net 60' (meaning your payment doesn't even get PROCESSED until 1 or 2 months after completion).
"I have seen the work that he has done and am very impressed with it. and I came to the conclusion that Josh is a very skilled artist and I want him to do some work for me, BUT, because of his history, I will not pay him in advance for his work. "That's what is of course so frustrating. Josh is one of the most talented character pixel artists I've ever seen. It's just a shame he muddies his talent and destroys his reputation with scams such as these.