Balancing all components individually allows you to change belt to sheave clearance any way you want without affecting the overall balance.
The machine I use, and most reputable shops have similar, is a dynamic balance machine. You tell it where you want to make corrections at and it tells you how much material to remove and where. A dynamic balance corrects all unbalance at once removing or adding material in two planes. This brings the center of gravity to, within a tolerance, in line with the axis of rotation. Which is the definition of balanced.
Component balancing works, but it is laborious. I do all my clutches as an assembly with excellent results. I shim for proper belt to sheave clearance and balance after. I don't need to adjust belt clearance for my riding needs more than once a season.
The shops you want to stay away from are ones using tire balancers. Tire balancers are accurate to about a quarter of an ounce, which is 7grams. Polaris tolerance is 3 grams. Tire balance is designed for tires spinning roughly 500 rpm at 60 mph. I can achieve less than 100mg of unbalance. The clutches i balance are balanced at 1000 rpm mounted to a mandrel roughly the same weight of the crankshaft.
Rember every 100mg of unbalance at 8000 rpm, depending on how far from the centerline, equally roughly 1 pound of centrifugal force. So 3 grams or 3000mg equals 30 lbs swinging around your crankshaft at 8000rpm. Food for thought.