Interesting subject, historically instructors have been paid peanuts and it will probably never change.
There is one way to make money instructing and that is when you have aquired a lifetime of flying instruct as a freelance and specialize in something that people will pay for.
I operate a one person flight training business in Canada, I have a very low overhead due to not needing to go to all the expense of getting a Government approved operating certificate. Nor do I have all the hassel of needing an instructor rating. My only restriction is I canno't train students for a license, which of course is no problem as my clients already have licenses.
My hourly rate is $50.00 to $450.00 Canadian per hour for dual instruction, the client provides the airplane.
It is beyond me how Instructors can even live on the abismal wages they are paid.
However I have no answer as to how this can be changed.
Cat Driver:
The hardest thing about flying is knowing when to say no.