Yeah to me that seems a little far fetched. Readers are some of the biggest liars though, so she may be exaggerating.
The website is obviously going to take the majority of the earnings, and she isn't even a $15 psychic so what she's keeping from her readings can't be too terribly much. I guess you can work as often as you want though, but yeah you still have to pay taxes.
I read somewhere that psychics typically bring in 20-30k per year (in the US), so unless you're a psychic that charges $100 per reading and you get to keep all of it, I'd say the income is modest.