This is a description of being part of a gatekeeping network - not about sending applications and (maybe) receiving rejection letters. (Which is indeed very rare. Even a rejection letter signifies they feel some minimal level of obligation.)
By network, I mean opportunities being offered based on established relationships, rather than asking for opportunities or applying for postings. By gatekeeping, I mean the effect achieved when positions are filled like this.
I added "gatekeeping" for bite, but I realise there is no bad intention behind it.
Not criticising the behaviour either. It's just the state of things.