Hi Dan,
Recently I only advertise in our local free paper. Pretty much most of my work comes from this. I think it reflects that the free paper has been going a long time and is the first thing local people pick up when they want a trade or a service.
I do hand out business cards etc to customers so of course some work is referrals. I do a bit of cold calling on businesses too.
I've advertised in the "pay for" papers in the past, but with very little response so I gave up on those.
Good luck with it.
Ben