A bit of a tangent:
I went to a clinic on mic placement this weekend hosted by Michael D. Clute - a producer/engineer from Nashville . It was a real eye-opener as to what goes on behind the scenes in making a recording! For $10 I expected I might learn a few interesting things, but he talked for about 4 hours about a lifetime of experience in the music business, well worth the money!
Anyways, at the end of it all some people began asking questions about sending demos, how to get the right people to hear their music so they can launch a career. He had an inspired speech in answer to this. Something along the lines of how many people get with big labels but even after that there is a TINY chance of really hitting it big (what most people think of as a 'career' in music)... That the best thing was to do whatever's in your power but not fret or worry about achieving 'fame & fortune' because that's wasted energy, better to focus more on doing your job the best you can, any rewards will come naturally. Basically to be creative and enjoy what you're doing.
The way I see it, we ought to put most of our attention on whatever level we happen to be at. If a student starts getting good, they'll want to start performing for people, as their performance gets better they might start getting paid to play, there may come a time where it would be feasible to set up shows or go on a tour. Maybe the student will play with a trio... Of course everybody would like to get paid to play, but the student shouldn't be investing so much energy that far into the future, just work on improving and it will make sense when it comes time to take the next step.
So I figure it would be best to let a student know it's a possibility - but 'first thing's first...' It would be a plus if the teacher could speak from personal experience

Another thought is to have performance opprotunities for students. No one can deny after being on stage whether they've done their job or not! Students who do a good job at informal recitals could perhaps be encouraged to play at open mics, retirement homes or maybe at a local restaurant that has a piano...