That is the million dollar question. The internet has changed everything. Look how many indie labels don't exist anymore. Everybody wants their music for free. It has become so easy for any Joe Blow to make a recording that there is a glut of bad music out there. This makes it that much harder to get exposure.
I will say that starting a band in 2011 is way different than it was in 1988. Used to be you'd print up 100 cassettes, send em to college radio stations, take em to the local record stores, sell em at shows, and give them to friends. Turn around and print another batch. The lucky ones get picked up by an indie label and now the quantities are 1000 but there's CD's, vinyl, and cassettes. Then you go on tour pushing your thang and hope to sell enough T shirts to get to the next town.
Today you build a web site and host some of your music for free. Obviously you're gonna hafta give something away to get noticed. Then you tell everyone one on FaceBook. Then you make a youTube video. Next you burn a bunch of CD and do the college radio thang, ain't no more local record stores so cross that one off the list. Sell em at shows and give them to friends. There aren't really that many indie labels left so how do you make this next step? I couldn't fathom touring today because of the cost of gasoline. Truth be known, we always made twice as much money from T shirts back in the day when CD's did sell. I dunno about the iTunes thang. Seems better to have your own web store. I have never looked into it, but I've heard mention of a company called CD Baby daht com.