Google adwords local and facebook ads are great if you have a budget to work with. Both let you target your local market. Online classifieds might work for you but that depends on the services/products you are selling.
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There are many ways to profit from a website
1.) Promote affiliate products
2.) Sell advertising
3.) Sell a service
4.) Sell a product
5.) Use third party ads like adsense, adbrite, etc.
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