You can be a live band and make money too.

Put up a clip of last weeks live gig and let the newcomers read the comments on how much everyone enjoyed the show who went.
Of course every band should get a decent recording done and sell it. It builds anticipation for the "real" thing(live performance). I think it's best to try to look for ways to avoid having the option of selling downloads at first. If people want your music bad enough, they will break down and buy it. Instead of selling single songs, fans are "trained" into getting into the whole album, and hopefully read the insert. If more bands went this route, then tangible music would be preferred over fast food music. I like my dishes cooked over microwavable meals, don't you?

I think you get where I'm coming from. I'm sure you could sell more downloads later once you do decide to make them available. I mean, you can't just get away with selling CD's forever, cause unfortunately someone is going to put it up for torrent. Would sure be nice if that wasn't a risk, but it is. Damn, I hate the sound of MP3.