What is your "v"? Is it supposed to be the velocity that is identified with \dot{q}? If so, then your proposed addition to the Lagrangian is just a kinetic energy term and contributes no friction term, just another ma-like term. If v is something different, then what is it supposed to be?
To the OP: to get dissipation in a Lagrangian you usually have to include an explicitly time dependent term, such as multiplying the "frictionless" lagrangian by \exp(\gamma t/m). Because of the explicit time dependence you will have to use the product rule when doing the time derivative, and as a result the \dot{q} will survive, and afterwards the overall exponential factor cancels out leaving you with the damped equation of motion.
Now, it should be noted that there was no physical insight that got us this lagrangian, so although we derived a damped equation of motion there was no physics to it. Another, more physical way of deriving a damped equation of motion is to couple the system you're interested into a large (essentially infinite) reservoir system, typically harmonic oscillators, and then "integrate out" the reservoir degrees of freedom which leaves you with an effective damping term. See
http://en.wikipedia.org/wiki/Caldeira-Leggett_model
That discusses it in the quantum case, and what manipulations one does to recover the "classical dissipation" scenarios.