Teaching IS my second job

My first job is performing jazz and "world" music, and composing for my ensemble. I don't make much money, but I'm used to that, and for the most part it's alright.
I feel like I would be making alot of money if I were teaching full-time, instead of performing so much (which doesn't pay well at all, at the moment-- though sometimes it does). I have to cancel and reschedule so many lessons to accomodate performance, that it becomes difficult to require consistent attendance by my students. And since I perform every weekend, I take Mondays off from teaching, which leaves me only 4 teaching days. On the other hand, it is likely that I wouldn't have so many students (and a waiting list) if it weren't for my performances.
I just turned 35. I'm struggling a little financially, but I'm confident that it will improve as time goes by.
About the "disaster" you mentioned, musicrebel:
I think the trouble is not just in the music education field, but in the entire music profession. And in America, the whole culture of listeners. And not just in classical music, but in all live music. CD sales are dominated by Big Business record lables that market terrible pop to the masses who think that Brittney Spears is real music. Live music venues often remain empty, while just around the corner a DJ has people lined up outside waiting to get in.
Everyone has CD players and iPods, and the musical experience is cheapened by the fact that we are constantly surrounded by it. I spoke with a composer who doesn't listen to recorded music for this same reason. When I spent time in Brazil learning their beautiful music, I was amazed: most people couldn't afford CD players, so live music was valued highly by everyone. EVERYONE sang and played music, not just "Musicians".
About the 1/3 price tickets:
I am not deeply connected to the classical music world in my professional life, but I believe it exists in a sort of bubble which is independent of the rest of the musical economy. Classical music depends on the support of institutions and wealthy patrons. Those 1/3 price tickets don't even come close to paying the salaries of the Symphony members and the production costs of the performance. The musicians expect good pay, they demand it, and they deserve it. But who can afford to regularly buy concert tickets that reflect the cost? In America, at least, the institutional and government support continues to shrink, and any "Art" musician MUST ask for money, or they might not get any.
Despite my occasional cynicism, I am very thankful that my life revolves around music. I am thankful to work for myself, and on my own terms. I feel positive that new avenues of music busines are being created, and more will appear. Like your software endeavours, for example... it's probably inevetable that future teachers will use more technology, and you are wise to innovate. Got patents?