There are a million photographers! HOLY COMPETITION!

How on Earth do I expect to make a buck when everybody and their brother is now a photographer? Facebook is turning them out like procreating rabbits and Best Buy is selling them cameras faster than they can stock their shelves. AND! All of these facebook photographers all selling everything and the CD for $50!!! I can't compete with that!

Nope, you can't. And I am guessing you don't want to try. Here's a novel idea for you: They are NOT your competition.  "WHAT? Yes they are! They are calling themselves professional photographers, they are competition" you say? My answer to you is still NOPE.
You are the only YOU. You are the only one who can produce the image YOU produce. Assuming you have some skill with the camera and post processing you are probably far better behind the camera than they are.  

Stop worrying about them and worry about YOU. 

You have to do two things that every company who produces a product or service has ever done: Define your target market. Then create your value and need within your target market.

Seeing how my kids just went back to school and I had to pay the bill for their school clothes we'll use them as an example.
This year the kids had to have Hollister, Abercrombie, Aeropostale, etc... Did that mean that they were better clothing than Sears and JC Penney's has? Nope. But they sure cost me more. And my kids were having none of that Sears or JC Penney stuff when I tried. Those companies have created a NEED within my kids for their clothing and a value to their merchandise that far exceeded what I WANTED to pay. Yet I paid the bill.
Don't even mention that W word to my kids unless it's in reference to paper and pens. Even underwear couldn't possibly come from THERE. Thank God they aren't Jet Setters and have me going over the top for haute couture from the runways because I'd have to become something other than a photographer. Bank Robber comes to mind.
The W's aren't competition for the quality department stores and the department stores aren't competing with the designer stores. They all have their own target market. To those in those markets they've created  value and need.
I will most definitely shop in Sears and Penney's for my clothing. I value their good, sturdy goods at a fair price. I do not need a $50 pair of jeans just because they say Abercrombie on them. I am not Abercrombie's target market and they really don't care if I go to Sears. I'm not who they want. They want my kids!
Abercrombie isn't ripping out it's hair because OH MY GOD, Sears took the customer!!! They don't even care! I am not who they want, they aren't what I want. I don't value them or need them. They don't value me or need me.

It's the same in the photography world. You are YOU and nobody else can produce YOUR photography. Sure, all of those other photographers can create a photograph-just not YOUR photograph. Define your target market and create the value and need in that market.