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I think it still works, if you go to local meeting, network with people, go to conferences (affiliate, web hosting related), give flyers or business cards, etc... - I believe you can grow your business.
Offline marketing always works as long as you have the resources to reach your target clients, moreover please remember a lot of these offline clients usually are non-technical clients so it works best if you provide a complete solution for e.g. if you talking about web hosting then you need to provide them domain name, web space as well as web design and even website update option, you may even need to help them with setting up email accounts etc...
I think offline marketing along with online marketing makes it perfect. Having a coffee with a client and building a relationship will be very good for future. We can get more references through them where we can connect them online.
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