My friend Kyle from Westminster, Maryland has been setting up incredible shows in his tiny home town (population something like 16,000) that I had the privilege of seeing in its hay day this past year(what I perceive as its hay day). The Deal With the Pine Trees is what he calls the shows. Usually they're in the park (Deer Park I believe), so they're outside in the warmer months, but it was January or so when I was there with Steve Moore. The show of ours was at a coffee shop -- but a good sized room -- and I couldn't believe it walking into this place, it was packed wall to wall: over 100 kids there to see the show. At the door they were taking money and had hand made all the tickets, so it felt very official and yet fun.
Anyways, it's not all ice cream and limos putting on shows, it's often headache and pay out of your own pocket. It's tons of work: postering/flyering, alerting friends, getting the papers' attentions-- not to mention then who's gonna run sound, run the door, general security (so the cops don't bust the under-age drinkers and shut you down, etc); not to mention where is this show gonna be in the first place...
I have been exchanging emails with Kyle now after he's been setting up shows in his li'l town of Westminster, MD for over a year now. He's tired, he's broke--worse, in debt. We can hypothesize why he did it: to get his town exposed to bands happening outside the mainstream. What's in it for him? It's good experience, it's actually really fun at times and you can see the effects it has on your peers: it's infectious seeing other people express themselves in a way that they make the music theirs.
There is a lot of energy going into Myspace for example, people seem to have a lot of energy, but what about in their local scenes? Do people know that their energy is needed to pitch in and help out? There is a thriving house venue scene in Seattle now, I'm curious if they can chime in with their recent experiences, I'll try to look up some folks and ask them how it's going...
If you're going to respond to this, please no bashing.
The following is from this Kyle I speak of:

"kb-
yeah... it seems that many of the people around here just expect to be able to show up to an event and not have to pay anything. i'm left in the position of being "too business-like" by really pushing them to pay to come into the shows because there have been far too many cases of me having to cover the difference to meet a guarantee, or sometimes (if the person didn't really ask for a specific amount) i put in some of my money b/c i can tell they haven't been eating much, etc.

and people seem to think i've been making money. i've had to live in a car for a few months, and now am living with a friend's family because i can't even begin to afford a place myself. over the past year, i have spent well over $3,000 putting on these shows and getting equipment.

the fact that you have a family and have been able to care for them is incredible and very inspiring to me. some people have a hard time understanding how hard it is to be involved in the music business and actually provide for yourself and a family. i've worked hundreds of hours on this festival, skipped college, lived without health care (and i'm an intense asthmatic), etc. the only other job i've been able to continue to show up to is a part time job at record and tape traders (a music store!) and that's only after a year of booking shows..."

one message later:

"if everyone in each town and small city where there are shows helped a bit, the shows in their area would improve beyond everyone's wildest dreams. when volunteerism increased around here, more bands were able to come from out of state, there was more diversity in both musical acts and people in the crowd... we were able to begin to purchase better equipment...
then fast forward a few months where one or two people are left promoting the shows, running the events (sound, money collection at the show, housing bands, paying for guarantees unmet, paying for food for traveling bands, etc.)
pretty soon those few folks are losing money, getting frustrated and so on. at that point, it's up to the community to salvage everything. and that's where we are now here in westminster. i don't know if people will step up, or if this community will let it die. it is all up to them..."