This came to my attention over at 3D Audio. It supports some of the ideas in this thread, and is encouraging as well:
"When the big recording contract comes through . . . that's when you'll really be strapped for cash, unless you manage to hang
onto your merchandising rights and you then sell a lot of t-shirts and hats, etc.
And then you can make your own record, license it to a series of regional distributors, hire your own promo man (have him work for a piece of the publishing id possible, so he has incentive and you know he's a believer seeing $$$$), get an indie
booking agent, go move some swag, and keep a substantially larger chunk of the gross. I could show you the figures . . . you'd
make more $$$ for yourself selling 10,000 units this way than selling over 2,000,000 with a typical major label deal (swag not
even included), but I suppose this is a different conversation . . ."
This piece was written by a John Wheeler, who knows more about this than me. Which is not difficult, admittedly.

Notice how he separates the distribution and promotion functions and the booking functions also? Notice he talks about a 'series' of distributors? Other people do the legwork, but you coordinate.
Here's a link to John's website, by the way - what a load of nice gear. Engineer looks a bit young and inexperienced, but maybe it's just the assistant.
http://members.tripod.com/~Pullpud/Studio.html
[This message has been edited by dobro (edited 04-11-2000).]