in the same boat with you Nuff B. I'm tryna get stuff started with this label i'm working for, tryna sell beats. I'm wonderin how to keep the business steady (well, first of all get the business STARTING then keepin it steady, na mean?). I checked the stuff on your myspace, it's nice shit. You live in cali so I know the scene is out there. You should try goin to shows (of artists you dig) and hand out beat cd's. Try an get it to the people performing but also the people in the crowd (Just askif they rap or know someone who raps). It'd be worth investing in some business cards that look pro and have your contact info and website on em. Go with a gang of beat cd's an pass em out an to the people who seem more serious, hit em with a business card.
Also, i know you don't want to be doing free beats but sometimes you gotta get known by building your track record. If you can tell people "yeah I produced that... blah blah" song or whatever for so and so artist, then people recognize your on some serious shit. If you end up gettin relations with someone who's doin shows or an artist that's somewhat popular, it may be worth it in the long run to hit them with a free beat or charge very little to just build your track record.