Brenno is somewhat correct - it is a bit of a funny industry to crack into - particularly with so many new budding photographers popping up everywhere (hey i'm only new to it myself).
My primary income stream is wedding photography - I book at worst 3 a month and 90% of them come from referrals. Word of mouth in the wedding game is pretty powerful. I think it pays pretty well, I charge between $1000-$2000 for a basic package, which includes all photography, post-work, development etc. It's picking up enough that I've had to take on a 2nd pro to cover the weekends where I've been double-booked!! My wife is also now running a small on the side wedding planning business including all stationery and invitaitons and stuff, which we hope will cover her primary income when she goes on maternity leave when we start a family

but that's another story

In QLD alone I think the statistic is over 200 weddings each week!
I've done a little bit of Freelance work, but I'm not too partial to it personally, because as others have said - it's sparatic and you certainly have to hunt it down, but that said get in with the right crowd - say Getty Images and you'll get more work then you can poke a stick at (and international travel too)
I also do private shoots for both models, cars, parties, events etc... but all word of mouth
If that's the sort of lifestyle you want to lead then the repurcussions are you could potentially be away from your family and friends for long periods of time, work odd hours and meet strange/fascinating new people

I would like to get to a point where I can setup a professional studio and also get portraiture clients etc and professional studio shoots as well as having a visible point for customers.
Anyway's that's my blurb.
Although Brennos comment about photography being different to photoshop is correct, I find being adept in photoshop allows me to offer clients effects and themed photos that I couldn't otherwise capture or would have to outsource to someone else... so keeps the money in house

Cheers,
Matt