What's your sell out?

My book launches for Kindle today! I hope you guys like it. 

The first chapter illustrates that for Henson, merchandising the Sesame Street characters felt like selling out, yet he was convinced to do it for creative independence - both his own and CTW's. 

I have read that Walt Disney was quick to merchandize Mickey, even putting the mouse on bathroom tissue! Merchandising for artists is a tricky business. But it's a great source of funding - just look at Tickle Me Elmo!

How have you dealt with selling out? Do you think artists should sell out? When?