My band started with people I know through college. At first it was just rhythm guitar and me (bass) jamming, then we found a lead guitarist cause he worked with my buddy. The lead guitarist knew a drummer and I asked a guy in one of my classes if he could sing, turned out he could. So we started playing parties around town, which escalated to small venues and bars.
Craigslist can be tricky, but I've had some good luck with it. (a couple disasters as well.)
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