I hate talking to people. Especially about me.
The old adage, "It's not about what you know - it's about who you know," applies in many instances in this business. I get more students, gigs, and job offers through word of mouth and meeting in person than all my advertising, web marketing, and promotions combined - which I am totally OK with!
The hard part is getting yourself, as they say, "out there." I find that if I click on an extrovert switch inside myself for twenty or thirty minutes at a time, I can meet people and talk about the things I do without blushing or feeling too braggy.
The most important thing to remember is that you know what you're doing, and it's your job to show people that.
Often, you'll be surprised how happy people are to hear about what you're doing, and how much more they will want to know about it. I truly enjoy playing my instrument(s), playing my instrument(s), talking about them, listening to them, and researching them. I love explaining how awesome the Alexander Technique is and sharing some of the cool tidbits I learned during my thesis research on healthy musicianship.
If you just start by talking about what you like, it can easily lead to a referral: "Why don't you set up a lesson with me and we can talk some more about ____?" "If you like that, you should check out ____!" "Here is my card - it has a link to my website, where you can find out more about ___" etc.
But you have to leave the house.
You don't have to be a social butterfly when you do go out - being visible to your colleagues and clientele is half of the battle.