Things have changed MASSIVELY in the last few years....the first wave for me was when the Linndrum came around in the early 80's.... BAM! there goes the demo work. I took the advice of a teacher at school ( session player in LA) and bought and learned the Linn... I worked while plenty of SMOKIN guys starved. you HAVE to adapt to make a living playing your axe.... even the hot**** guys are scrapping for gigs ( with a few notable exceptions of course )
session work is DEAD. All the jingle stuff that I used to do ( a couple/4 a week in the 80's 90's) dried up with the advent of the home midi studio. I did the same, that's what got me into the AE seat- necessity.
It's about connections and working fast- for the jingle stuff. I've done maybe 3 in the last year. Lot's of two man "production teams" doing the whole thing from demo ( which btw USED to pay, but now the demo is often an "audition" ) to completed product. Money on regional stuff has gone DOWN, and nationals are VERY hard to crack ( not imposssible) and competitive as well. these guys:
http://www.singingserpent.com/start.html are one of the big dogs in the area doing nationals. they have a big stable of guys writing and do some cool stuff (that's the Pinback headquarters btw ) they hoe out for big bucks and all play in bands on the side... a very cool operation!
that being said, if your a kik ass player, versatile and/or bring something to the table on your axe that others don't - and are good at networking ( very important ) you can make a living for sure.
The FTP / doing tracks for people remote is VERY doable and very common in my world.... not so much for band/artist things but for the corporate/ film/ stuff.
I use guitar players primarily that way as the guys in my area are a little safe for my tastes... ( I'm a drummer )
bottom line : the whole biz is guerrilla warfare at this point, but if you network and bring something to the table, and work in a professional manner- there is a way to make a living.
EVERYONE I know that is worth their salt as a session player, guys in my "vintage" ( llate 30's early 40's ) that had made a substantial living as a session player ( mixed with live touring gigs ) that are still in the biz.... own and operate AT LEAST a home o dub place to do exactly what we're talking about.
I can count the guys on two hands that make a living only on sessions ( without teaching / gigging ) that's in So. Cal btw. I'm more in the N. san diego/ orange cnty loop , although I do work in LA/ and studio city 3-4 times a month.
If your a good player, get a decent home rig , say an 002 and decent pair of convertors , couple of pre's, and a place to work.... get server FTP savy - then push your sh**t out there. Find and Play with as talented folks as you can- for free if you have to... get a rep and a reel... and it will happen for you!
good luck man... love to hear your work.