Obtain a barcode for your CD. This barcode, also known as a UPC (Universal Product Code) is a 12-digit number that allows for the accurate tracking of your CD sales. Any retailer that carries your CD will ask for this code when you register with them. When they sell one of your CDs, this code is scanned and you're given credit for the sale. Some CD manufacturers will include this with your order, but if they don't offer the service, you can always buy one from a third-party vendor. See the link in "Resources" for an example.
Visit independent CD stores in your area and talk to the managers about stocking your product. Buying stock in order to fill store shelves can be risky for a retailer, but as an independent musician, you can remove all risk for the retailer by offering your CD on a consignment basis. Even if you do a 50-50 split on the sale price, you'll still be making more per unit than you would with a record deal.
Send your CD to college and public radio stations in your region and ask if they'll consider adding any of the songs to their rotation. Make a note of any resulting airplay and include this information in future pitches to music retailers. Radio play can create a little buzz for your release, and it may make your release more attractive to any retailer on the fence about stocking your CD.
Play as many live shows as you can in your area. Besides selling your CD at these shows, you should also take every opportunity to announce that your CD is available in local stores. Directing traffic to stores is a great strategy, in that it shows that there is demand for your product and that you're actively promoting it. This gives you credibility as an artist, increasing the likelihood of a positive response from store owners when you approach them in the future.
Sign up with online retailers in order to make your CD available to buyers the world over. There are niche catalogs that specialize in certain genres, and often they want to review your music to make sure that it meets their criteria before stocking it. This is good, since it puts your music in front of the site's customer-base alongside similar products. In addition, register with a large all-inclusive retailer like CD Baby. They are the largest online retailer of independent music, and although there is a registration fee, their traffic is substantial and the fee includes digital distribution to all major download sites, including iTunes. In exchange for a listing page with photos and sound clips, you'll pay a fixed amount per CD sold, and checks are sent directly to you as your CD sells.
Create your own website to promote your music. If you don't have the technical knowledge for this, pay for the services of a web designer. Either way, your CD should be the main focus of the site. Be sure that you have live links to all retail outlets that carry your CD, including online as well as any brick-and-mortar stores that stock your product. Don't bury these links on a designated link page; place them on the homepage of the site so that potential customers don't have to search for a place to buy.