I think part of this belief comes because a few people like @christianguzmanfitness have managed to build a following of over 1 million people which has enabled them to sell a lot of their clothing and travel and buy expensive cars and such. But that's very much the exception and not the rule.
I do think Ig can be a great tool to grow a brand on a shoestring budget, but I also agree with this article which challenges the all-to-popular notion that if you get a lot of followers on Ig you'll be rich and important.