Science Fiction and Fantasy Writers of America

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In Memoriam

Karl Kroeber
1926-2009

SFWA

VANITY AND SUBSIDY PUBLISHERS


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Links checked/Page updated: 9/12/09

Definitions

Commercial publishers, subsidy publishers, vanity publishers, self-publishing–what’s the difference? Here are some classic–and, as you’ll see, not necessarily current–definitions:

  • A commercial publisher purchases the right to publish a manuscript (usually together with other rights, known as subsidiary rights), and pays the author a royalty on sales. Most also pay an advance on royalties. Commercial publishers are highly selective, publishing only a tiny percentage of manuscripts submitted. They handle every aspect of editing, publication, distribution, and marketing. There are no costs to the author.

  • A vanity publisher prints and binds a book at the author’s sole expense. Costs include the publisher’s profit and overhead, so vanity publishing is usually a good deal more expensive than self-publishing. All rights and completed books are the property of the author, and the author retains all proceeds from sales. Vanity publishers may exclude objectionable content such as pornography, but otherwise do not screen for quality.

  • A subsidy publisher also takes payment from the author to print and bind a book, but contributes a portion of the cost and/or provides adjunct services such as editing, distribution, warehousing, and marketing. Theoretically, subsidy publishers are selective. A subsidy publisher claims at least some rights, though the claim may be limited and non-exclusive. The completed books are the property of the publisher, which owns the ISBN, and remain in the publisher’s possession until sold. Income to the writer comes in the form of a royalty.

  • Self-publishing, like vanity publishing, requires the author to bear the entire cost of publication, and also to handle all marketing, distribution, storage, etc. However, rather than paying for a pre-set package of services, the author puts those services together himself. Because every aspect of the process can be out to bid, self-publishing can be much more cost effective than vanity publishing; it can also result in a higher-quality product. All rights, the ISBN, and completed books are owned by the author, who keeps all proceeds from sales.

People often use the term “vanity publisher” and “subsidy publisher” interchangeably. Strictly speaking, this isn’t correct–there are differences, as described above.

However, the lines have blurred over the past few years. What you’ll most often find nowadays is neither a vanity publisher nor a subsidy publisher in the classic sense, but a hybrid of the two–following the vanity model in terms of pricing and selection (building a fat profit into its fees and publishing anyone who will pay), and the subsidy model in terms of book ownership and income to the author (the publisher owns the finished books, and the author earns royalties on sales).

If the publisher is honest, it won’t try to convince you that it’s selective in any meaningful sense (apart from screening for things like pornography or hate literature), or that it invests its own resources in publication. The true subsidy publisher, always a rare bird, is even rarer these days; you aren’t likely to find one outside of specialized markets, such as poetry or academic books. Be wary, therefore, of a pay-to-publish operation that claims to be a “subsidy” publisher–or a “joint venture” or “co-op” or “partner” or “equity” publisher, or any other term that suggests that it’s contributing something to the relationship. It’s far more likely to be an overpriced vanity with a deceptive line of patter.

Something else to watch out for: the growing crowd of pay-to-publish operations that attempt to deceive authors by presenting themselves as “traditional” or “small press” publishers, failing to reveal their fees until late in the submission process, or shifting the cost to some aspect of the book production process other than printing and binding. A few of these publishers don’t require upfront money at all; instead, they ask their authors to perform various services, or pressure them to buy their own books. But whether you’re laying down cash for book production, finished books, or adjunct services, the bottom line is the same: you are paying to see your book in print. (For more on this deceptive breed of publisher, see Vanity Publishers in Sheep’s Clothing, below.)

Complicating matters still further: the many print-on-demand self-publishing services that have sprung up over the past decade. While these companies share many characteristics with vanity publishers (upfront fees, no or minimal selectivity, no or minimal marketing), they are typically far cheaper than the classic vanity publisher–plus, because books are produced only when ordered, you don’t have to store dozens of boxes of books in your basement.  (For a full discussion of such services, see the Print on Demand Self-Publishing Services page.)

With all these changes and shifty dealings, describing a vanity publisher simply as “a publisher that requires authors to pay for publication” is no longer sufficient. So here’s a more up-to-date definition:

  • A vanity publisher relies on its authors as its main source of income–whether by charging fees for publication or other services, or requiring authors to buy or pre-sell their own books. It often presents itself as a publisher (sometimes claiming to be a “traditional” publisher and concealing its fees) rather than a self-publishing service, claiming to be selective despite employing little meaningful quality screening. Adjunct services (editing, marketing, and/or distribution) are generally minimal or of dubious value. A vanity publisher claims various rights by contract, and owns the ISBN and the completed books, which remain in the publisher’s possession until sold. Payment to the author is in the form of a royalty.
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The Pitfalls of Vanity Publishing

For projects where the number of books required is small, and marketing and profit aren’t a concern (for instance, memoirs or genealogies or recipe compilations, intended for family and friends or to be given as gifts) an honest, straightforward vanity publisher can be a reasonable–if unduly costly–alternative. It can also be an option for writers with niche nonfiction projects, where they’re able to reach their audiences directly, or for people who can exploit “back of the room” situations–for instance, lecturers who can sell books at their appearances. Again, though, with the many self-publishing options available, a vanity publisher is an unduly expensive choice.

If you’re looking to establish a career as a writer, however, or if you actually want people you don’t know to buy and read your book, vanity publishing is not a good idea.

For one thing, the expense can be enormous. In order to ensure their profit, vanity publishers charge far more than the actual production cost of a book, and it’s rare that this financial investment is ever recouped through sales. Even if they offer some degree of distribution, vanity publishers have no economic incentive to get books into the hands of readers, since they’ve already been paid by the author. Some vanity publishers don’t even have arrangements with book wholesalers, making it impossible to obtain the books except through the author.

You can try to become your own sales force, of course, and attempt your own marketing and distribution. But you’ll find yourself running up against the stigma that attaches to vanity publishing. Vanity publishers will publish anyone who pays, regardless of quality (don’t be fooled by fee-based publishers that tell you they’re selective: this is a marketing ploy designed to appeal to your ego). As a result, authors who pay to publish are not taken seriously. You’ll have trouble getting reviewers to look at your book. You’ll have difficulty persuading bookstores to order it, never mind stock it. As for building a writing resume, you can forget it. Editors, publishers, and reviewers don’t regard vanity-published books as professional credits.

Another important consideration: while there are honest vanity publishers that fulfill contractual promises, there are also many that engage in a wide range of unethical or fraudulent practices, including misrepresenting themselves as commercial publishers, grossly overcharging for their services, reneging on contract obligations, producing shoddy books, failing to print the number of books contracted for, providing kickbacks to agents who refer manuscripts…the list goes on. A few that have been in the news:

  • Commonwealth Publications, a Canadian vanity publisher, closed its doors in 1999. Angry authors sued, claiming they didn’t receive the books they paid to have published, were given marketing promises that weren’t fulfilled, and failed to receive royalties from books sold.

  • Northwest Publishing, a vanity publisher located in Utah, cheated authors out of millions of dollars, which its principals gambled away in Reno and Las Vegas. Its assets were seized and the owner, James Van Treese, was sentenced to up to 30 years in prison.

  • Sovereign Publications, a vanity publishing firm owned by the fee-charging Deering Literary Agency, took hundreds of thousands of dollars from authors, most of whom never received the books they paid for. The Deerings were convicted of fraud, and sentenced to time in federal prison.

  • Press-Tige Publishing, a vanity publisher owned by Martha Ivery (who also operated under an alias as a fee-charging literary agent), took nearly three-quarters of a million dollars from over 200 authors. Delays were common; promised print runs weren’t delivered, books weren’t distributed or marketed. In the last few years of its existence, Press-Tige published no books at all, though it continued to offer contracts and take money from authors. Ivery was recently sentenced to five years in federal prison.

  • Minerva Press Ltd., a UK vanity publisher with branches in India and the USA, was the subject of two exposes by the BBC. More than 40 authors sought redress from this company, alleging false promises, production of shoddy books, and general failure to fulfill contractual promises. In 2001, 16 of those cases were settled by Minerva in favor of the authors under a blanket non-disclosure agreement. Minerva went bust in 2002, leaving behind over £2 million in debt, as well as unpaid staff and multitudes of unhappy authors.
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Vanity Publishers in Sheep’s Clothing

As writers become more aware of the pitfalls of vanity publishing, many less-than-honest pay-to-publish operations are trying dodge the vanity label by shifting their charges to areas other than printing and binding. I often hear from writers who are confused because they’ve been offered a contract by a publisher that describes itself as “traditional” or “small press,” but wants its authors to make some sort of financial commitment in order to be published.

If asked, such publishers vehemently deny that they are vanity operations. After all, they don’t accept everyone who submits, and they aren’t asking their authors to pay for printing–just to finance their own editing, or to commit to pre-selling a certain number of books. But as noted above, the bottom line is the same: you are paying to see your book in print. A publisher that turns its authors into customers has little incentive to get books into the hands of readers, and is not likely to invest much money in marketing and distribution.

Here are some of the “alternative” charges you may encounter from these stealth vanity publishers (for the names and M.O’s of some stealth vanity publishers, see this post from Writer Beware’s blog):

  • A setup fee or deposit. Publishers that require a setup fee will tell you that you’re not paying to publish, just contributing to the cost of preparing your book for printing, or making a “good faith investment” in your own success. Some publishers promise to refund the fee under certain circumstances (usually carefully crafted so they’ll almost never be fulfilled). The setup fee often isn’t large by vanity standards–a few hundred dollars–but since such publishers typically use print-on-demand technology to produce their books, it more than covers their expenses.

  • A fee for some aspect of the publication process other than printing/binding. Some publishers ask you to pay for editing, or for your book cover art, or for liablity insurance, or for a publicity campaign (commercial publishers provide these as a routine part of the publication process, at their own expense). Services may cost thousands of dollars, and are often minimal and not of professional quality.

  • A claim that the fee you’re being asked to pay is only part of the cost, the rest being paid by the publisher. The publisher may tell you that it will spend as much or more on your book than you’re being charged, or that the services it provides–warehousing, distribution, publicity–are worth far more than your “investment.” Since most vanity publishers these days use digital technology (thus eliminating the expense of print runs and warehousing), provide little or no editing and marketing, and utilize the same distribution channels used by POD self-publishing services, their production and distribution costs are minimal. Most of the time, your fee pays the whole freight and then some.

  • A pre-purchase requirement. Some publishers include a clause in their contracts requiring you to buy a set quantity of finished books–as many as a thousand copies, often at a minimal discount. This can be more expensive than straightforward vanity publishing.

  • A pre-sale requirement. A similar contract clause may require you to pre-sell a certain number of books prior to publication, or to “guarantee” a minimum number of sales (usually, exactly as much as is needed to enable the publisher to recoup its investment and make a profit). You don’t have to buy them yourself–but if you don’t deliver the sales, the publishing deal is off. This is an especially tricky variation on the pay-to-publish scheme, because it allows the publisher to claim that it’s not asking you for cash. But it’s not an author’s job to be a salesman for his own books–that’s what the publisher is supposed to do.

  • A sales guarantee. If your book doesn’t sell X number of copies within X amount of time, you must agree to buy the difference. Most authors have an over-optimistic vision of the sales they can achieve, and figure they’ll never have to pull out their credit card, but vanity publishers’ nonexistent marketing and distribution ensures that they’re usually wrong. In an especially sneaky version of this ploy, the publisher pressures authors to buy their own books for re-sale, but doesn’t allow author purchases to count toward the guarantee total–so authors are snagged twice, once during the honeymoon period (the six months or so before the first royalty statement arrives), and again at the expiration of the guarantee period.

  • Withheld royalties. You get no royalty income until the cost of production has been recouped. In this manifestation of vanity publishing, you don’t have to physically lay out any cash–but money that should be yours is kept by the publisher, which amounts to the same thing.

  • A requirement that you find “investors” to finance your book, or organizations to agree to buy it. You don’t have to front the money yourself–but if you don’t deliver the financial backing, you won’t be published.

  • Pressure to buy your book yourself. The publisher may not contractually require you to purchase your own book–indeed, it may make a big deal of telling you that you don’t have to buy anything. Even so, it will put you under heavy buying pressure–for instance, providing an Author Guide that extols the financial benefit of buying your own book for resale, or offering special incentives designed to spur author purchases, such as extra discounts or contests for the month’s top seller. These are all signs of a publisher that relies on its authors as its main customer base. Unfortunately, if the publisher employs such tactics, you usually don’t find out about them until you’ve already signed the contract.

  • A variety of other sneaky tactics. Some examples from Writer Beware’s complaint files: requiring authors to pay for publisher-sponsored conferences or lectures or “publicity opportunities”. Requiring authors to sell ads that are bound into the company’s books. Selling stock in the company, despite the lack of an appropriate license. Requiring authors to hire the publisher’s staff to perform various services. The permutations are endless.
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Alternatives

True self-publishing–where the author herself handles every aspect of publication, from editing to cover art to interior design to printing and binding–is a more reputable alternative to vanity publishing. You have far greater control over the process (which can result in a superior product), and retain full ownership of your rights. Authors can function as their own distributors, offering standard discounts and returnability to bookstores, which may make stores more willing to stock a self-published book. Literary agents and commercial publishers may be interested in self-published books that sell a large number of copies relatively quickly–say, 5,000 or more within the first year of release.

Self-publishing is not for the faint of heart, however. You must be prepared to shoulder the entire burden of publishing, distributing, and promoting your book, a process that will eat up not just time but money, and requires a huge amount of energy, creativity, and determination to carry off successfully. (Lessons for Self-Publishers, from Writer Beware’s blog, takes a closer look at this issue, as well as what can go wrong.)

Also, self-publishing works best for particular kinds of projects–niche nonfiction where the author has direct access to his/her target audience, or books whose authors are able to exploit “back-of-the-room” situations (for instance, a restauranteur who can sell his self-published cookbook in his restaurant, or a speaker who can make her books available at her lectures). For general nonfiction, and for nearly all fiction, self-publishing works much less well.

Be skeptical of the many self-publishing cheerleaders who are eager to tell you about amazing self-publishing success stories (some of them apocryphal, such as the claim that John Grisham self-published his first novel, or irrelevant, such as the fact that Virginia Woolf published through her own publisher–you can’t compare the publishing environment of the 1920’s to today). There are indeed some impressive successes, but they represent a tiny fraction of all self-published authors. Your odds of success with a self-published book are much, much smaller than with a commercially published book.

Another option to consider: the print-on-demand self-publishing services, which offer a straightforward and often much cheaper version of vanity publishing. POD self-publishing has its own problems (for a rundown on these, see the Print on Demand Self-Publishing Services page), but there are services that are very cost-effective, and you’re much less likely to run into operations that want to rip you off.

One last comment: if you’re thinking of turning to vanity publishing because you can’t find a good agent, or are fed up with receiving rejections from large publishing houses, consider approaching reputable independent publishers instead. These publishers often don’t require authors to be agented. They can produce excellent-quality books, and may give you personal attention you wouldn’t get from the majors. The tradeoff is less distribution clout and smaller marketing budgets. But a book published by an established commercial independent can be as credible a writing credit as a book published by one of the big houses, and a reasonable way to begin a writing career.

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Due Diligence

Given the prevalence and relative inexpensiveness of print-on-demand self-publishing services, there’s no reason, in my opinion, ever to use a vanity publisher–especially one that presents itself misleadingly. But if, after all of the above, you still want to consider a vanity publisher, take these precautions:

  • Order a couple of the publisher’s books, so you can assess quality. Does the interior formatting look professional? Are all the pages in order? Is the cover art attractive? Are the books sturdy? Did the order process go off without a hitch?

  • Request references. And use them.

  • Contact writers who’ve used the publisher’s services (other than those you’ve been given as references). Are they happy with the quality of the books? Did they receive all the books they paid for? Do buyers have any trouble getting hold of the books? Have there been any broken promises?

  • Research the publisher. Have there been complaints? Is it in financial trouble? If there are problems, a thorough Internet search can often turn them up. And you can always contact Writer Beware.

  • Have a knowledgeable person look over the contract. Vanity publishers’ contracts, which usually aren’t negotiable, can include unpleasant clauses and hidden fees. (Note: if you use a lawyer, be sure to find one who has experience with publishing contracts, which include terms and clauses not found in other kinds of contracts.)

  • Choose a publisher that distributes through at least one wholesaler such as Ingram or Baker & Taylor. That way, the books will be available through online booksellers. Even if your books aren’t stocked in bookstores, people will at least be able to order them.

  • Don’t take the publisher’s promises at face value. If the publisher says it has an arrangement with a distributor, make sure it’s telling the truth. If there are promises of marketing, ask for sample catalogues, ads, publicity releases and so on, so you check their quality (vanity publishers often produce very unprofessional marketing materials). Never rely on verbal promises that aren’t included in the contract.
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Warning Signs

Always approach vanity publishers with caution. If you encounter any of the following, be suspicious:

  • A vanity publisher that poses as a non-vanity publisher. Some vanity publishers don’t reveal the fact that you’re expected to pay until well on into the submission process, or try to pretend they’re not vanity publishers by shifting their fees to something other than printing and binding (such as editing or cover design). A publisher that doesn’t present itself honestly at the outset is probably not a publisher that will treat you honestly in the long run.

  • Terms like “subsidy”, “co-op”, “joint venture”, or “partner”. As noted in the “Definitions” section, real subsidy publishers are rare. Publishers that claim to be subsidy or partner publishers in order to dodge the vanity label, on the other hand, are common.

  • A referral from a literary agency or freelance editor. Reputable literary agents and freelance editors don’t work with vanity publishers. Period. Those who do are either receiving a kickback from the publisher, own the publisher themselves (possibly under another name), or are too incompetent to understand why vanity publishing is not a good career move. Whatever the reason, it’s bad news for you.

  • A promise (stated or implied) of a profit. Some vanity publishers provide nicely-formatted “Sample Sales Projection” sheets showing how you can make thousands of dollars if your first printing sells out. Others assure you that books in your genre are popular, and with proper production and marketing your book should do well. In fact, for the reasons outlined above, it’s extremely difficult even to break even on a vanity published book. An ethical vanity publisher won’t promise profits; in fact, it will warn you at the outset that vanity-published books rarely recoup authors’ investments.

  • Obfuscation or refusal of reasonable requests for information. You’re paying for the service, so you have the right to have all your questions answered fully, honestly, and promptly. If a vanity publisher refuses to provide you with references, or hedges about details such as contract arrangements, production schedules, marketing, and so on, be suspicious.

  • Refusal to provide a firm price. The exact cost of publication should be stated at the outset (and included in the contract), along with any additional fees such as expenses for warehousing and distribution. Don’t deal with a publisher that is vague about money–for instance, a publisher that tells you that the final price can’t be quoted until the books are printed (in which case you might wind up paying a substantial “differential”), or that warehousing will be charged “at the publisher’s discretion” (in which case you could be hit with enormous additional fees).

  • Verbal promises that aren’t duplicated in the contract. Some dishonest vanity publishers try to soothe nervous writers by promising various perks, such as a full or partial reimbursement of their costs if the book doesn’t sell out within a specified period of time. However, if such promises aren’t included in the contract, you’ll have little recourse if they aren’t fulfilled (which is exactly why unethical vanity publishers don’t write them down). If the publisher is willing to promise something, it should also be willing to add it to the contract.

  • Extravagant praise and/or promises. Extravagant praise is a sales ploy: a vanity publisher has little reason to care whether your work is good or bad, since you’re paying them to publish it. And if a vanity publisher says it can get you on national talk shows, or tells you its publicity department will organize a 30-city speaking tour or a national booksigning campaign, be extremely skeptical. Even big advance-and-royalty-paying publishers don’t provide these perks for most of their authors.

  • A double standard. Dishonest vanity publishers sometimes entice writers by saying that they can’t risk a regular contract for someone who hasn’t yet published anything, but would be willing to split the costs and profits of the book. Or they may tell you that they’ve used up all their advance money for the year, but would be glad to work on a “co-op” basis. Or they may promise to publish your second book without charge if the first book does well. In all these cases, the implication is that the publisher is primarily a commercial publisher, and is offering the vanity contract as a special circumstance. But though there are a few vanity publishers that have a non-vanity branch, most don’t, and imply its existence solely for the purpose of acquiring customers.

  • Pressure. A disreputable vanity publisher wants to hook you quick, before you change your mind. Beware, therefore, if a publisher tells you that its offer is “limited time only,” or that (unexplained) circumstances require you to “act immediately.” Like the permanent going-out-of-business sale, this is just another marketing ploy.
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Links

Checking Reputations

  • E-mail Writer Beware. SFWA has assembled a large archive of documentation on vanity publishers that engage in questionable practices. Send us the names of any publisher you’d like to know about, and we’ll summarize for you any data that’s in our files. If we have no information, we’ll let you know that too.

  • Preditors and Editors provides lists of agents and publishers, with “not recommended” notations to indicate those that engage in questionable practices.

  • Writer Beware’s Thumbs Down Publisher List: the publishers about which Writer Beware has received the greatest number of advisories and complaints over the past several years. A number of them are vanity publishers.

  • The Bewares and Background Check area of the Absolute Write Water Cooler is an excellent place to check for information on any kind of publisher. Check the index to see if the publisher you’re interested in has already been discussed.

  • Google Groups is a searchable database of Usenet newsgroups, with message archives dating back to 1981. Writers often post publisher questions or complaints to Usenet. If you’re uncertain about a publisher, do a search on its name here to see what you find.

General Information

Vanity Publishers Gone Bad

  • Writer Robert Wassell’s experience with dishonest UK vanity publisher Minerva Press (now defunct).

  • This article is old, but the M.O. of the vanity publisher described (Excalibur Press, one of the many, many crooked vanities that infest the UK) is typical of the breed.

  • Literary Dreams End in Litigation: An article by Penni Crabtree of the San Diego Union-Tribune on the exploits of serial vanity publisher Ed Johnson, who has been the focus of numerous author complaints and court judgments.

  • When exposed as a scam by the UK’s Mirror, vanity publisher Minerva Press responded with lawsuit threats.

  • Another UK vanity, Pentland Press, collapsed in 2002, with more than 260,000 in debt and hundreds of defrauded authors.

  • Yet another UK vanity, Serendipity, went bust in the fall of 2008, with authors alleging breach of contract.

  • Sovereign Publications, or what happens when a scam literary agency owns a vanity publisher.

  • Press-Tige Publishing was a vanity publisher owned by a fee-charging literary agent with a mania for aliases.

  • The Empty Canoe, a crooked “ghostwriting studio” brought down by its defrauded authors.

  • Airleaf LLC, an Indiana-based vanity publisher, was sued by the Indiana Attorney General after more than 400 authors paid money for books that were never published and publicity services that were never rendered.

  • More case studies of dishonest vanity publishers: Commonwealth Publications and Northwest Publishing.
Except for graphics, and where specifically indicated, all Writer Beware contents copyright © 1998-2009 Victoria Strauss
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