I inevitably get disheartened from time to time, then I am hopeful again when I start a new project. I enjoy the writing process much more than the submission process, and (for obvious reasons) I enjoy re-reading my own work, even if no agents did so I am building a library of my own work for my old age
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I have a full-time day job - I'm realistic enough to know that even if I had a book published it would be very unlikely to earn me anything near the minimum wage, let alone match my current (modest but pays the mortgage) salary.
I sometimes wonder why I put myself through the submissions process but I can't shake the feeling that somewhere there's an audience for what I write, I just haven't quite got the knack of selling it.
Until you get your work out there you can't really know whether you're on the right track - if you are, it doesn't matter how crowded your market is, your work will stand out and you'll get agent interest.
The 1 in 100,000 stat will include many people who are clueless. If you read agents' blogs they always mention very basic errors such as using bizarre fonts or getting the agent's name wrong which you can't imagine anyone who's done even 5 seconds of research would make, so the statistic once you have eliminated the non-runners might not be as bad.