Most producers don't make anywhere near 35-50 gand a year. That's the exception. One can't assume the biggest, most popular producers are typical examples of producers in general.
Take me, for instance. I'm definitely not one of the big players in this market, but I don't think I'm one of the worst off either (at least I hope not). Well, for the last several months I've made an average of about $800 in sales per month. Not too bad, I guess. Unfortunately, a typical 2-model shoot (which I've been doing about once a month in recent times) usually costs me $300 to $400 in salary expenses alone. And let's not even talk about all the time and effort that goes into finding models, planning and doing shoots, editing the footage, producing picture and clip samples, writing descriptions, uploading to C4S or whatever, posting on tickling forums, etc. So a loss of $200 a month is actually a HUGE deal.
Another thing I should point out is that a fairly large percentage of my monthly sales are of older clips. I'm not especially prolific, but I've been doing this for the last 10 years, and I've managed to build a fairly substantial back catalog. Sales for more recent videos aren't very impressive, most of them barely covering their production costs, if even that in some cases. If it weren't for my back catalog I would have closed shop a long time ago because sales would be way too low to justify doing more shoots. I expect things are pretty hard for many producers who haven't been in the business for very long and haven't had a chance to accumulate hundreds of clips for customers to choose from. So, if my situation isn't nearly as great as some people seem to think it is, imagine how bad is it for many of the other producers, and how damaging being cheated out of $200 a month would be for them.