The designers seem to be fighting back now - like on craigslist you see a lot of graphic/website designers "YELLING" at the people posting "$10 dollar logo" or "do me free web design" And thanks drig, I will definitely be busy trying all that. Right now I'm getting that website built and looking for a few clients.
1) wrote to webmaster forums 2) make a free logo action 3) bring your portfolio online and submit this to some sites
I have a degree in design as well, and it's hard to stomach seeing these "designers" on DP offering logo/banner/header work for $5, $10, whatever. Most of them have a copy of Photoshop and just throw something together (love the ones that use Arial and Courier all day!)... and people actually pay for this. Ugh. I've tried to impress upon potential clients that even if they paid me $150 for a logo (still low in my book), they'd be saving a lot more than if they went to an agency... but 99% of the people I've offered prices like that to on DP, I never hear from them again. There are just too many people who will either A) settle for crap, or B)will find the rare designer who is talented, and for some reason doesn't mind working for peanuts. It's frustrating, to be sure. If you are looking for clients who are willing to pay more, I'd also suggest sitepoint, and elance. The competition is better, and it's easier to get lost in the crowd, but they tend to pay a little better. Good luck!
I'd say for a logo design business do all of the above as well (especially yellow pages and pay-per-click marketing targeting your locality). Additionally, make sure you're visible in locality-specific small business directories like FreelanceLocalTech.
I would advertise your services here on the forum. You can also try other forums. The warrior forum is especially good for advertising a service but you have to pay $20 to list your service there. Try adding a signature link to your site. You could also try fiverr or some other gig sites. I am not sure how much your logos are selling for but you could perhaps do a template logo for $5 just to get some customers built up. Hope this helps
Try freelancing sites such as elance or Freelancer.com. You can also use Craigslist. Or you can get a list of new local businesses and try cold calling them.