Having shot professionally for several years and then as a "semi" while I make money at the real job, I can attest to the fact that making money as a photographer is no easy feat. With all the high quality inexpensive cameras out there, almost anyone is a photographer.
A friend of mine, his wife knows nothing about the basics of photography, other than putting her D40x on program has all her local "desperate" housewives in the neighborhood coming over to have her shoot their Christmas cards. Now she is hanging flyers at the local coffee house advertising herself as a photographer. Her work is bad too.
I asked her about the rule of thirds and she looked at me like I was crazy. Never mind trying to ask her about spot metering or 18% gray cards. The thing is people in the neighborhood are eating it up. People just do not know what good composition looks like any more.
Right now, I used my pro status to get discounts on my insurance rider and use my business to write off all new camera/computer purchases. Also, I write off part of my new house as studio/office space even though I only do a shoot or two in the studio every month.
In the end, photography has become a good paying side job doing something I love and letting me get the best gear and write a sizable portion of it off.
Matt...
Technically an R.I.T alumni for those of you who know.