How profitable is freelance writing?

The new issue of WHY Magazine is live, and according to a list they've rerun from Forbes.com, writing is the third most profitable home-based business!

How can this be, when writers have such a reputation in our society as starving artists? Surveys demonstrate that the vast majority of writers do not earn a living wage. However, since this list is based on profit margins (13 percent on average for writers), I'm guessing writers place high because we have some of the fewest expenses of any home-based business, meaning that more of our income is actually profit.

Of course, as I've said before, it annoys me how society supports low-paying writing jobs. Since your income is primarily profit, there is no reason why you can't make a living as a freelance writer — so long as you have the determination and are willing to devote the time.