This question is a matter of perspective. Its all about how you look at it, as is everything dealing with photography.
There is a ton of money out there when you talk about photography. There are a ton of photographers out there too. The really great photography jobs do not go to the lowest bidder. There are a handful of photographers out there who are naming their price for photoshoots.
There are the established photographers who make top dollar from well off people because they have the name and do great work. They can't name their price, but they can charge more than your average people.
Just for illustration purposes, we'll say that these 2 groups make 50% of the money in the industry. They probably comprise 3% of it overall. They make good money.
Everyone else has to fight for the other 50% of the money. This includes large chain portrait studios, mom and pop studios, celebrity chasers, free lance people and independent people, and probably some others that I can't think of right now. With the large recent infusion of independent everyday people trying to take a crack at being weekend photographers, myself included, the market is flooded with extra people. Its cutthroat.
There is potential for making good money, but its going to take some great connections, talent, marketing... The bottom line is that it is an easy business to get into, but a hard one to make successful.