I am in the same boat with my own book and I am working with an consultant to come up with a viable Internet marketing model that authors can actually use. I have a large number of writer friends who have become frustrated with the existing publishing model.
As a writer and marketing pro I sense a real opportunity to help myself and create a viable business model in turn. The old school publishers suck at marketing individual authors and Amazon isn't much better.
It is a work in progress and I will let you know how we do with the release of my new book. So far we are driving traffic and I have seen fan traffic increase 5 times. However, the true test is, of course, conversions and I'll know more with the release of my new book by the end of next month!
I'll keep you posted on this thread.