Re: Attendance at gigs?
Obviously a web presence is important, but many people seeking entertainment won't look for or otherwise stumble across your site. They have to be reached in more traditional ways, such as:
You may want to see about playing the local colleges, where you'll be able to play in front of more people. Such gigs may not pay well, but that's okay - the students who like the band are likely to come see you at paid gigs. If you're playing bars & clubs with an age limit, that may be a consideration.
If there's a radio station with a program featuring local/indie bands, try to get an interview & airplay with them. Same for local-access cable TV.
If there's a local CD store, see if they'll let you do an in-store and sell your CD. If you don't have a CD... record one!
Solicit a story/interview in the local papers, freebies as well as your city's daily paper. If placing a 1/4 page ad for your gig will encourage them to do a story, it's probably money well spent.
And that last part is important: you're going to have to spend some money to make some money.
But good exposure and networking is not enough. You have to back it all up with the band itself. Are you doing covers, or originals? (or both?) Is there something about your band that excites the people who see you? In other words, what does your group do that people would make an effort to see & hear?
That's probably the first thing you need to examine, how marketable the band is. If you've got everything going for you, then by all means go out and market yourselves!