A few people had 25+ mayors which was a problem. Barracks are awesome in a town, I have 2 towns with level 10 barracks with full garrisons, they've levelled those 8 chars to about level 12 over the last couple months that they've sat there. The markets make good gold. Each town, when fully upgraded, should earn you about 4-5K per day.
Once you're strong enough, the best gold is in level 3 dungeons. The mobs barely hit you and you'll earn around 700 gold per fight.