From Lara's recommendation I went along to the arts & crafts fair being held in the gardens of St Johns at the West end of Princes Street called 3D/2D Craft & Design Fair with some friends. It runs until 30th August and is free entry.
It's really worth the visit if you're after some interesting jewellery or novel woodwork or patchwork items but generally I usually go to get inspiration to make my own art. There are a lot of people selling the usual stuff: jewellery, cards, bags, hats etc but a few hidden gems such as footstools that looked like cute sheep/cows and some really lovely artwork and etchings.
One of my favourite artists there was Andrew Peutherer who made really bright and vivid Scottish landscapes like the one below:

I don't know how much these people make there though; the jewellery is all very nice but I wonder how much they actually sell. The paintings on offer were all very expensive and I doubt anyone really makes a large purchase like that there and then. I don't think the artists help themselves very much either as none apart from Andrew gave out business cards (that I could see). In fact the only reason I know about the artist above is because of the business card, I would have forgotten his name like the many other nice artists I saw.
The lack of promotion got me into a conversation with my friends I went with to the art fair with about the general lack of education in school and university (especially art college) about self promotion. Alice, who did a costume design degree said they had very little tuition on how to self-promote and get yourself known - which is so important in the art and design world! How are you supposed to do well in an industry when you know so little about how it functions or how to tailor a CV to it?
Talking about promotion, but a little off topic, Moo do the BEST BUSINESS CARDS EVER. FACT. (and it's not because they are called Moo!)
Here's a link I found that lists all the kinds of things art and design students don't get taught in their degrees but should know, which kind of carries on what I was saying here: http://www.creativereview.co.uk/cr-blog/2009/september/question-of-the-week-010909
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