Newbie - I have a product, but need IM advice

Let me start by saying that this is my first forum I have ever joined as well as my first post, so please forgive me if I make all the same newbie mistakes you have come to hate. I promise that I will try to make them only once. I have read through several newbie posts as well as the FAQs and rules in an attempt to not do anything too stupid, but please correct me if I have. I also intend to become a paid member as soon as I am comfortable that I have found the right community to help me grow my online business. That said, here is my story...

My wife has been making metal jewelry for the last 2.5 years, and selling through an online artist community called Etsy (3squares.etsy.com). She does all the networking, social media, promotions, etc. to market this site, and makes a modest amount of sales ($4-5k in GP /yr). These sales of course come primarily from those involved in the community itself, or those who may have purchased from an Etsy member previously and are familiar with the site.

I lost my job in June, and have been looking at how I can boost her sales to help provide more income for our family while I look for a replacement. It would seem to me in my newbie mind that I need to open up more channels, and get her popping up in more searches online. I just don't know what the right ways are to do that. I built a functioning website at: 3squares.co, but without something to drive traffic it is of course useless. I have heard that changing content frequently such as a blog is good, but she is too busy in the manufacturing to do this, and I would not know what to write and how often. I have also heard about list building and email services, but they cost money. I tried Google Adwords and facebook Ads, but like 1 million before me I got a bunch of clicks and no sales. I just can't risk burning through more cash with Christmas coming and a mortgage to pay with both of us out of work. Ultimately I would love for us to be self sustaining, but I am sure at this point that I don't know enough about selling on the internet to make that happen, so I am searching for some guidance on what I should do next.

Maybe it starts with something as simple as should I:
-focus on driving more traffic to the Etsy site that is already 100% setup and manageable, but buyers have to join (cost is free) before purchasing. Etsy takes 2.9% of the sales. What would be the first thing to do?
or
-continue to build out the separate website and somehow drive traffic to that.
or
- perhaps I an somehow part of an affiliate program where someone else runs the site and makes the sales, and I just deliver the goods although that seems similar to the Etsy system but without the marketing.

Thanks all, and I hope I am where you are in a few months, and can help someone else that comes along in a pickle like me.

John