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VANITY/SUBSIDY PUBLISHERS

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Definitions
Is There a Difference Between Vanity and Subsidy Publishing?
The Pitfalls of Vanity Publishing
Vanity Publishers in Sheep’s Clothing
Hybrid Publishers
Alternatives
Due Diligence
Warning Signs
Links

Definitions

Traditional publishers, subsidy publishers, vanity publishers, hybrid publishers, self-publishing–what’s the difference?

– A traditional publisher (more correctly known as a commercial or trade publisher) purchases the right to publish and sell a manuscript (usually together with other rights, known as subsidiary rights) on an exclusive basis. Large houses and bigger independents pay an advance on royalties; small presses often don’t. Traditional publishers are highly selective, publishing only a tiny percentage of manuscripts submitted, and handle every aspect of editing, design, publication, distribution, and marketing at no cost to the author. Their profit comes from the sale of books to the public.

– A vanity or subsidy publisher charges a fee to produce a book, or requires the author to buy something as a condition of publication, such as finished books or marketing services. As with traditional publishing, a vanity or subsidy publisher contracts rights on an exclusive basis, but gatekeeping is minimal to nonexistent. There’s a wide variety of models for vanity/subsidy publishing, from companies that do little more than format a digital file and put it up for sale online, to companies that provide a menu of (not necessarily high-quality) design, editing, and marketing services in addition to print and digital book production–often at additional cost. Fees for vanity/subsidy publishing can rise into the high five-figure range, and their profit comes primarily from those fees, rather than from the sale of books to the public. Vanity/subsidy publishers are frequently deceptive, exploitive, and predatory.

– A hybrid publisher also charges a fee, but is selective in what it publishesm and adds value in the form of professional-quality editing, design, marketing, and/or distribution. As with vanity/subsidy publishers, hybrid publishers can be extremely costly, and author fees are a major profit engine; but a good hybrid will also be committed to getting books into the hands of readers. As with traditional publishers, rights are contracted on an exclusive basis. Unfortunately many publishers that call themselves hybrids are actually vanity/subsidy publishers in disguise.

– Self-publishing services fall somewhere between vanity/subsidy publishing and true self-publishing. Unlike true self-publishing, writers are restricted to whatever publishing packages the service provides. Unlike vanity/subsidy publishers, self-publishing services are relatively transparent about what they are and what they do. Because they’re digitally-based and recoup production costs at the point of sale, self-pub services’ fees can be a good deal lower than vanity/subsidy or hybrid publishers’–but some charge eye-popping amounts, and many heavily promote expensive and dubiously useful extras, such as marketing services. Profits come from author fees and purchases, rather than from book sales to the public. Self-publishing services’ contracts are non-exclusive and terminable at will (if you’re confused about whether the company you’re considering is a vanity/subsidy publisher or a self-publishing service, this is one way to tell).

– True self-publishing, like vanity/subsidy publishing, requires the author to bear the entire cost of publication, and also leaves marketing and promotion to the author. However, rather than paying for a pre-set package of services, the author puts those services together him/herself, hiring editors, cover designers, publicists, etc. Because every aspect of the process can be put out to bid, self-publishing can be more cost effective than vanity/subsidy or hybrid publishing, and result in a higher-quality product.

Is There a Difference Between Vanity and Subsidy Publishing?

No.

Some fee-charging publishers will try to convince you that there is. They’ll claim that subsidy publishing is more respectable because subsidy publishers don’t publish everything that’s submitted, or provide “quality” editing and marketing, or give their authors personal attention. Others employ a variety of euphemisms intended to suggest that they are partners not just in the process, but in the cost of publishing: “joint venture”, “co-op”, “partner”, “equity”, and “hybrid” are all terms you may encounter.

Don’t be fooled. Even if a so-called subsidy publisher is selective, its quality-control processes are probably minimal: if author fees are your main profit engine, you can’t afford to be too picky. Those “quality” services may contribute to a staggering cost–or not be quality at all, to avoid cutting into profits. As for the publisher investing its resources to match yours…it’s a lot more likely that your money will cover not only the whole cost of publication, but the publisher’s overhead and profit as well.

From this point on, I’ll use the term “vanity publisher” to refer to both vanity and subsidy publishers.

The Pitfalls of Vanity Publishing

For projects where the audience is small, the emphasis is print, 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 an acceptable–if unduly expensive–alternative.

It can also be an option for writers with niche nonfiction projects who can reach their audiences directly, or for people who can exploit “back of the room” situations–for instance, lecturers who sell books at their appearances. Again, though, with the many self-publishing options available, a vanity publisher is an excessively costly 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 books, vanity publishing is a bad idea.

For one thing, as I’ve noted, the expense can be enormous. Even if they claim otherwise (and many do), vanity publishers typically charge far more than the actual production cost of a book.

For another, it’s very difficult for authors to recoup this investment. Vanity publishers rarely offer meaningful distribution or marketing; they have no economic incentive to do so, since selling books to the public isn’t how they make their profit. The poor-quality production many of them provide is yet another handicap. If you vanity-publish, you will probably lose money.

There’s also a stigma that attaches to vanity publishing. This has dwindled in recent years, with the rise of self-publishing options and the blurring of the once-bright lines between traditional and author-paid publication–but it still exists, and if you try to market your vanity-published book you will probably run up against it. Reviewers and book bloggers may turn up their noses. Bookstores may refuse to carry your book even if you offer it on consignment or agree to buy back unsold copies. As for building a writing resume…editors, publishers, and reviewers are unlikely to regard vanity-published books as professional writing credits.

Also worth considering: because vanity publishers’ contracts are exclusive, and rarely can be terminated at will, you’re stuck with your vanity publisher if things go bad.

And things do go bad. While honest vanity publishers that fulfill contractual promises do exist, many more engage in a wide range of unethical or fraudulent practices, including misrepresenting themselves as traditional publishers, grossly overcharging for their services, reneging on contract obligations, producing shoddy books, providing kickbacks to agents who refer manuscripts…the list goes on.

A few scamming vanities 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 a woman named 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 ultimately 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.

Vantage Press, a vanity publisher founded in 1949 that was once sued by its authors for deceptive advertising and broken contractual promises, vanished abruptly in 2013. Most authors weren’t informed of the closure, and found out only when the company contacted them to offer a release of rights in exchange for waiving all debts, damages, and their right to sue. An accounting of money due was promised, along with a return of unsold printed books, but to date, most authors haven’t received either one.

Vanity Publishers in Sheep’s Clothing

As writers become more aware of the pitfalls of vanity publishing, many less-than-honest pay-to-play operations are trying dodge the vanity label by stripping mention of their fees from their websites, or 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” 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 publishers. After all, they don’t accept everyone who submits! Or they aren’t asking authors to pay for printing–just to finance their own editing, or to pre-sell a certain number of books!

But whether you’re shelling out cash for book production, finished books, or adjunct services, 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 resources in marketing and distribution.

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

A setup fee or deposit. Publishers that require a setup fee may 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 many not be large by vanity standards–a few hundred dollars–but since such publishers don’t waste cash on professional staff and use digital technology to produce their books, it more than covers the cost of production.

A fee for some aspect of the publication process other than book production. Some publishers ask you to chip in for editing, or for over art, or for publicity (real publishers provide these things part of the publication process, at their expense). Services may cost thousands of dollars, and are often minimal and not of professional quality.

– Fees for “extra” services over and above the basics of publication. The publisher doesn’t charge you an upfront fee, but does offer you the opportunity to pay for expedited editing, or special website placement, or inclusion in book fair catalogs, or enhanced marketing. These services are optional–so the publisher can claim it’s not making authors to pay to publish–but there’s often heavy pressure to buy them, and authors who don’t pull out their credit cards are second-class citizens.

A claim that your fee is only part of the cost, with the publisher fronting the rest. At best, this is an exaggeration. At worst, it’s lie. Vanity publishers’ profit comes from the fees authors pay and the books authors buy, rather than from book sales to the public. They have little incentive to cut into that by investing resources in high-quality editing, design, production, and marketing. Most of the time, your fee will pay the whole freight, plus the publisher’s overhead and profit.

A purchase requirement. Some publishers include a clause in their contracts requiring you to buy a specific quantity of finished books–from a few hundred to several thousand copies, often at a paltry 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–you may be asked to find “investors” or organizations to commit to purchases–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 salesperson for his or her 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 idea of the sales they can achieve, and figure they’ll never have to pay up–but vanity publishers’ nonexistent marketing and distribution ensures that they’re usually wrong.

Withheld royalties. You get no royalty income until the cost of production has been recouped. In this version 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.

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 bombarding you with special buying incentives 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 primary customer base, and therefore has little interest in selling books to the public. 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 techniques. 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; hawking company stock to authors, despite the lack of an appropriate license; requiring authors to hire the publisher’s staff to perform various services. The permutations are endless.

Hybrid Publishers

When is a fee-based publisher not a vanity publisher? When it’s a hybrid publisher. Sometimes.

When used properly, “hybrid publisher” indicates a publisher that straddles the divide between traditional and self-publishing: charging a fee and having a lower gatekeeping threshold than highly-selective trade publishers, but offering more value in terms of editing, design, marketing, and/or distribution than a vanity publisher or a self-publishing platform.

Unfortunately, a growing number of unscrupulous vanity publishers are calling themselves hybrids, in an effort to make themselves seem more respectable. How to tell the difference? Author and editor Jane Friedman provides this advice:

  • A good hybrid will have some method of curating or selecting what projects to take on. In other words: They consider the market potential of your work and its ability to succeed. If they appear to take anyone and everyone, then you’re better off evaluating the best self-publishing service to use. Don’t kid yourself about leveling up to a hybrid. (So-called hybrids aren’t averse to playing to your ego to get your business.)
  • A great hybrid offers the potential of bricks-and-mortar distribution—whether to bookstores or other retail channels. They might not be able to promise it, but if they’re actively working with a distributor or retailer—and they have a catalog of titles for marketing purposes—that’s a good sign. A self-publishing author can easily get distribution through online retail, via Amazon and Ingram (distribution fees are zero or little for online retail), so the more the hybrid invests in marketing and distributing print editions, the more they’re offering something you may not be able to accomplish yourself.
  • A good hybrid works with you both pre-publication and post-publication. The relationship doesn’t end once the book is done. (However, you may have to pay fees to continue the relationship.)

Jane also advises that a good hybrid should “pay better royalties than a traditional publishing deal. (Fifty percent is common.)”

Don’t take the hybrid’s word for any of this. Investigate on your own, to make sure that the hybrid isn’t just a vanity in disguise.

  • Does it genuinely add value? It should offer more than just a self-publishing-style suite of services, and shouldn’t be passing off basic elements of digital publishing (such as “worldwide” distribution) as premium extras.
  • Buy a few of the hybrid’s books to get a sense of whether claims of gatekeeping are real, and production is professional.
  • Check the hybrid’s claims. Can it really get its books into brick-and-mortar stores? Does it really do the marketing it promises?
  • Search for complaints. Absolute Write’s Bewares, Recommendations, & Background Check forum is a good place to start. Contact Writer Beware; we may have heard something.
  • As yourself whether it’s worth it. Like vanities, hybrids can be seriously expensive–mid- to high five figures is not uncommon–and some hybrids don’t even include everything you might want in their basic packages. You may have to pay extra for editing, for instance. That makes it even more important to determine that you’re not being rooked by a vanity publisher in disguise.

Alternatives

There are a number of alternatives to vanity publishing that will cost you less, give you more control, and probably yield a superior product.

If you want to print-publish, there are many digital self-publishing services that offer a straightforward and often much cheaper version of vanity publishing. Such services have their own problems (for a rundown on these, see the Self-Publishing page), but there are services that are very cost-effective–or even free–and you’re much less likely to run into operations that want to rip you off.

You can also self-publish electronically, with no upfront costs at all, via one of the several free options available: direct-to-ebook-reading-device (such as Amazon’s Kindle Direct Publishing program), or ebook distributors such as Smashwords or Draft2Digital that make your ebook available across a variety of platforms. Some self-published authors are realizing significant success via this route. Again, there’s more info on the Self-Publishing page.

Or you can choose to go it totally alone, handling every aspect of publication yourself, from editing to cover art to interior design to production via a short-run printer (for print) or a digital fulfiller such as Lightning Spark (for ebooks). This kind of self-publishing is not for the faint of heart. It will eat up not just time, but money, and requires a huge amount of energy, creativity, and determination to carry off successfully. It’s best for entrepreneurial authors who are willing to treat their books as a business.

One last comment: if you’re thinking of turning to vanity publishing because you can’t find an agent, have tried submitting to larger publishers without success, or don’t want the DIY experience of self-publishing, consider approaching reputable small presses instead. Small presses 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 a good small press can be as credible a writing credit as a book published by one of the big houses, and is a reasonable way to begin a writing career. For more information, see the Small Presses page.

Due Diligence

Writer Beware never recommends that writers use vanity publishers. The risk of scams is great, and with all the small presses and self-publishing options out there, there’s just no reason to pay an arm and a leg to a vanity publisher, even if you can find one that won’t rip you off.

But if, after all of the above, you still want to consider going this route, 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?

– Contact writers who’ve used the publisher’s services. Are they happy with the quality of the books? Did they receive the services 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? If there are problems, a thorough Internet search can often turn them up. A good place to check is the Bewares, Recommendations, and Background Check forum of the Absolute Write Water Cooler. 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.)

– Make sure the publisher distributes through at least one wholesaler, such as Ingram. That way, the books will be available online, and bookstores will be able to special-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 marketing promises, ask for examples of marketing materials. Never rely on verbal promises that aren’t included in the contract.

Warning Signs

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

– A vanity publisher that poses as a traditional publisher. Many vanity publishers don’t mention their fees on their websites or in their publicity materials; authors find out that money is due only after submitting. The idea is to entice authors who wouldn’t normally submit to a fee-charging publisher, and may find an actual publication offer hard to refuse, even if a fee is attached. But 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 “co-op”, “joint venture”, “partner”, “subsidy” or any other phrase that suggests the publisher will be matching your investment with its own. A vanity publisher’s profit comes from the fees its authors pay and the books they buy. It’s unlikely to cut into that by investing its own resources.

– A claim to share costs. See above. As noted in the “Definitions” section, this is an exaggeration at best and a lie at worst.

– A referral from a literary agency or freelance editor. Reputable literary agents and freelance editors don’t work with fee-based publishers. Period. Those who do are either receiving a kickback from the publisher, own the publisher themselves (possibly under another name), or are incompetent. 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 projections showing how you can make thousands of dollars by selling X number of books. In fact, for the reasons outlined above, it’s extremely difficult even to break even on a vanity-published book. An ethical vanity publisher 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 amount you are expected to pay should be stated at the outset (and included in the contract), including any extras such as warehousing or marketing. 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 publishers don’t write them down). If the publisher is willing to promise something, it should also be willing to include it to the contract.

– 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 their traditional publishing budget 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 traditional publisher, and is offering the fee-based contract as a special circumstance. But though some vanity publishers do occasionally offer non-fee contracts, such promises are far more likely to be marketing ploys intended to make writers feel better about handing over large sums of cash.

– 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 marketing.

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.
  • 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. (Despite the date, this list is current.)

General Information

  • Vanity Publishing–Advice and Warning is the webpage of Johnathon Clifford, a UK-based crusader against dishonest vanity publishers. He can be contacted directly with questions about UK vanity publishers, fraudulent and otherwise.

Vanity Publishers Gone Bad

  • The slow-motion collapse of vanity publisher Tate Publishing & Enterprises, beset by lawsuits and money troubles.
  • Writer Robert Wassell’s experience with dishonest UK vanity publisher Minerva Press (now defunct).
  • A UK vanity, Pentland Press, collapsed in 2002, with more than £260,000 in debt and hundreds of defrauded authors.
  • 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.

Links checked/Page updated: 12/28/16

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