I use a home-made setup involving a cut-up cardboard box, a sheet of blue (or other color, depending on the color of the model) paper, a couple of lights, and a tripod-mounted camera.
The box & paper. By using a single sheet with a curve at the bottom, the model appears to "float" and there's no messy seam to contend with.
Garden-variety clip-on lamps are mounted on bar stools; I forget what they are called, but the bulbs have a bluish tint in the glass.
It works well for me!