Online Fundraising

We are trying to increase our online fundraising efforts, and I'm trying to find out what methods other organizations are using.

From my experience, and what I've learned from others, most people do not use online fundraising unless it is coupled with direct mail or another traditional form of solicitation because email solicitations in and of themselves tend to produce little to no response rate. We are currently sending emails as follow-up reminders after a direct mail is sent, and we are considering sending email acquisition emails to people after they attend a performance.

Is anyone doing anything similar? What do you guys find to be effective/ineffective?