i use to give out goody bags for all the kids... it was like an additional 15 bucks and we included some simple 'cereal box' magic tricks in them. Just wasn't worth dealing with. Then we use to give the birthday child a magic kit. The magic kit was a nice kit that you couldnt find at local stores, but was about 10 bucks wholesale. Once again, became too much of a hassle.
Now I don't do any kind of handouts in that manner. Rather I make balloon creations. It is a wayyyyyy bigger hit with the kids and I have found myself getting more gigs because of the balloons. I entertain at two resteraunts only making balloons and do many shows where all i do is balloons. However I am not talking about a simple dog or sword. (
www.myspace.com/itmustbemagic) u can see some of the balloons that I make. I think the balloons are the best way to go as far as handouts. A balloon and business card.... or coloring sheet or w/e/.....