If you have business cards and are handing out flyers I'd say you're off to a good start. I usually just hang out at the airport as much as possible after work and on the weekends. I have gotten a couple walk-ins by this approach. It's not a very proactive approach but its kept me busy considering I only instruct part time.
If there's a local college near by see about taking out an ad in the student newspaper. Usually the rates aren't to bad. And if you talk to the right folks you might even be able to get an article done on your FBO ...
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What type of places do you hand out / get good success with flyers?
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FBO's, Main Termianal of commercial airports When you enter airport, Grocery Stores, Gaming Stores right nere the Flight Simulator boxes (only do it if the manager or an employee gives you the OK, I've made that mistake once or twice).