Re: referrals -- yes, you'd have a whole heap of work involved trying to find local folks and then convincing them to sign up with you (pricing breaks usually work)...but though it would take time to organize all that, hey, guess what, that time is going to pass by anyway; it's just a question of what happens while it's passing by...another idea would be to offer your own expertise, on a one-on-one basis somehow. Also, don't forget hard-goods: you can always become a Value-Added Reseller of, I dunno, environmentally-friendly keyboard polish and ear-plugs and q-tips, or glow-in-the-dark metronomes, LOL...you can represent instrument-makers, you can make your own DVDs maybe, etc. But I think instead of wondering how to profit from the site, you only really need to consider how to make the site useful...I believe monetization options will naturally present themselves as a consequence of your mission, as it actually is at that time....
Re: site design -- not sure why you feel you need to pay for a custom design...there are many free drop-dead gorgeous templates floating around on the web (and even more for a small fee), not to mention any that might come with your webhost. Besides, you can always draw visual inspiration from a site you admire.
Re: domain name -- don't worry, you'll think of a good one. It simply happens. You know what I'm talking about. We've all had that experience of inspiration just suddenly striking out of nowhere. It's just a matter of time.
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