It's a sad fact that making money in the original music world nowadays is extremely difficult, especially consistently. I had a discussion the other day with a bass playing friend, who plays in an original indie band, and he was shocked to discover how much I made playing covers compared to their wage, if they even get one!
I think a lot of emphasis is being placed on merchandise sales, as this is where bands can recoup the investment needed to produce demos, EPs and the like. Of course, this means that bands have to take on the full responsibility of manufacturing, distributing and promoting their CDs too, so as to cut out the middle man. For the sheer amount of hours that most bands put in, they really do get paid a pittance.