Traditional Publishing: A writer proposes a book idea to a publisher (often through a literary agent who collects a percentage of income from the publisher). The publisher estimates book sales and agrees to pay the writer a percentage of revenue from book sales (the "royalty"). The publisher usually pays an "advance" against future royalties when a contract is agreed upon. The publisher pays all of the cost of preparing, printing and marketing the book. HOWEVER, it is now common for authors to bear some of the expense (and do a lot of work) in promoting their books. With traditional publishing, the publisher -- not the author -- determines the book's title, length, cover design, price...everything. The books that come off the press may be very different from the book the author wrote.

Vanity Publishing: A writer pays a publishing company for a "publishing package" that includes designing a book, printing a set number of copies, and making books available to readers through one or several sales channels. Except for cases of libel or obscenity, most books are accepted. Packages typically cost from $199 to $1500, or even more. Vanity publishers make most of their money by selling services to authors, not by selling books to readers. They try to increase their revenue by pushing costly options including editing, promotional trinkets, publicity, and expanded distribution. It is common for vanity publishers to brag that their books are "available" at thousands of bookstores. Availability means that the stores can special-order books for customers who request them, NOT that the books will be stocked on the stores' shelves. The inexpensive publishing packages may include sales only from the publisher's own website. For more money, books can be ordered from online booksellers. Authors generally receive a royalty percentage on sold books, but until a certain sales level is achieved, the author is really just getting back money previously paid to the publisher. Most vanity books sell poorly, don't get reviewed or stocked in stores, and lose money for their authors. Since editing can be an expensive option, many vanity books are error-filled. Many are ugly. Many vanity publishers lie about the nature of their business, labeling themselves as "self-publishing companies," "subsidy publishers," or "POD publishers."

Self Publishing: a "real" self-publisher establishes a business, hires editors and designers, purchases photography, owns ISBNS, obtains LCCNs and copyrights, chooses a printer, and promotes the books.

Subsidy Publishing and Co-op publishing: In theory, in these arrangements the publisher rejects manuscripts that do not meet the publisher's "high standards," and  the author and publisher share expenses. In reality, in most of these deals the author pays all of the expenses.