Sit down and write out the answers to the following questions: What's your band name? What kind of music do you play? What three words do you want people to associate with your band? The answers provide the framework to your band identity, or band brand.
Sketch out your visual identity. Check out font books, color charts and illustrations to put together your logo and the visuals that you want to appear on your brand merchandise. If you aren't that creative, barter some free tickets or merchandise to a local designer who can help you get your designs and identity created.
Write a tagline. A funny catchphrase or a line from one of your songs is the best way to start. Using your new band font, write out some ideas and poll your buddies to get some feedback. From bumper stickers to posters to T-shirts, you want your words to be out there.
Determine a merchandising budget. If you don't have a lot of cash, start small. Bumper stickers, key chains and other trinkets are relatively cheap and can be customized with your new brand. Seek out companies that can create small-batch runs of T-shirts.
Invest money from sales into new merchandise. Keep your merch table fresh. Got a new set list? You should have new promotional items.
Give it away. The more people see your name, the more likely they are to check out your music. Once your merch table is profitable, start giving away promo items. Tossing T-shirts into the crowd isn't just for pro sports: everybody loves free stuff.