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If you're going to record (and you almost certainly are), then I'd press up some CD's. It's only another grand or so, and there's plenty of places who want a physical product. Of course, these places may expect you to give them the CD for free, so I'd regard CD's as a promotional effort which might break even. If you can turn a profit, great, but every band I've been in has to give away a few hundred for booking agents, press, family, friends, etc.
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