Finding software development contracts

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For the last few years I've been working as a self-employed software developer. Doing various gigs as they came my way. For the most part I've been fairly lucky, as my own personal network has yielded all the work I need to sustain myself and then some. As I said, I've been lucky to get all my contracts, I haven't had to put any real effort into finding work yet.

Although I'm currently employed, I'm unhappy and thinking about moving on.

My question is for the experienced self-employed contractors, how did you find your contracts? Are recruiters/headhunters/agencies helpful? What is the best way to expand your professional network? Can the internet be useful?

Thanks for the tips

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Byron Whitlock On BEST ANSWER

Craigslist, network with former co-workers. Stay away from rent-a-slave and elame sites. They will only waste your time and frustrate you (I want a youtube/facebook/amazon clone for under $500).

Local is better. Clients love to have you come onsite and talk with them.

It will take a bit but after a while, you will find enough clients who keep you busy and you won't have time to look for new ones :D.

Start off moonlighting so you can keep the lights on and the internet paid while this ramp up happens.

Good luck!