The publishing world has been changing for years, and continues to change today. Majority of this part is from the "The Everything Guide to Writing Your First Novel" by Hallie Ephron, which was published in 2011, so some of it might not be relevant anymore, but it's still good to know where the publishing industry has been to know where it could possibly go.

Titles from the "big six" and other major publishing houses still dominate The New York Times bestseller lists each month. But there are occasional examples of stunning successes for books that take a less traditional track.

Industry watcher Bowker reported that in 2009, 1,052,803 books were published in the United States; 764,448 of them came from "non-traditional channels," a mix of micro-publishers, self-publishers, and reprints of public domain titles. It was in 2008 that the number of print-on-demand books exceeded books from traditional publishers for the first time.

Here are some terms you will hear for different kinds of publishers, with an overview of how they deal with authors and manuscripts.

• Commercial publishers: These range from large to small publishers who buy the rights to the book and pay the author a royalty on sales. They often also pay an advance against future royalties, up front. Most commercial publishers are very picky and publish only a tiny fraction of manuscripts which are typically submitted to them by literary agents. Commercial publishers edit, package, publish, distribute, and market their books, and they don't charge their authors fees.

• Self-publishing services: These are companies that charge the author for all costs associated with publication; they handle marketing, distribution, and warehousing. They usually cover editing services, as well as help creating a cover and obtaining an ISBN number. Using a self-publishing service can be more economical than vanity publishing. The author retains all rights and keeps the proceeds from all sales.

• Vanity publishers: Typically, a vanity press publishes any book that the author is willing to pay to have published. These companies charge authors a fee to publish the book, and more to cover all the expenses associated with printing and binding. Vanity publishing is usually more costly than self-publishing. Authors retain all proceeds from sales and own the rights to their work. Vanity publishers provide a service and rarely reject manuscripts for quality.

• Subsidy publishers: These publishers operate with a hybrid business model. Typically they charge authors to print and bind the book, but cover other expenses such as editing and distribution. They usually pay the writer a royalty for sales. Some subsidy publishers screen manuscripts; others publish virtually every manuscript submitted to them. Completed books become the property of the subsidy publisher.

So, you've heard it before, and I've mentioned it already a handful of times, but what is a royalty? A royalty is a share (or percentage) paid to a writer from the proceeds from the sale of a book. Royalties are calculated by multiplying the price (sometimes the full retail price, sometimes the wholesale price) of a book by the royalty percentage. So suppose you write a book that retails for $16.00 and the royalty in your contract is 5% of the retail price; you earn $0.80 for each book sold.

There have never been more options for getting your book to readers. Here are some options:

• Publish it with a large or medium-sized publisher.

• Publish it with a small press.

• Publish it as an e-book.

• Publish it yourself as print on demand.

• Published it through a vanity or subsidy press.

• Win a contest where the prize is a book contract.

Publishing with a Traditional Publisher

Publishing your first novel with a major publishing house is every author's dream. You've labored on it, poured your heart and soul into it—there's no bigger thrill than to see your name on a hard cover and a reputable publishing house's logo on the spine.

With so many mergers in the publishing industry, by 2010 there were six large publishing houses, known as the "big six," all of which were owned by even larger media conglomerates.

The six major publishing houses that dominate the commercial publishing business publish books by brand-name authors and churn out most of the books that make their way to the bestseller lists.

Literary agents make it their business to not only know the imprints at each of the big six, but also to know the tastes and literary preferences of the acquiring editors who work there. By browsing the books listed on these big publishers' websites, you too can get a sense for where your book might find a happy home.

A tip: Browse Publishers Marketplace (publishersmarketplace.com) regularly to get a feeling for the kinds of deals being cut by publishers who might be a good fit for your kind of novel.

Traditional publishers like those in the big six typically pay the writer an advance against sales. Royalties begin to accrue only after that advance is earned out through sales of the book.

Together, the big six publish tens of thousands of novels each year. The big six are:

• Hachette Book Group
• HarperCollins
• MacMillan Publishers
• Penguin Group
• Random House
• Simon & Schuster

There are hundreds of other presses—small and medium-sized publishers, university presses, and more—that have reputations for excellence in publishing literary, commercial, and genre fiction. These presses typically enter into contracts with their authors, and pay an advance against future sales. Advances are usually far smaller than the typical advance from major publishing houses. Royalties begin to accrue only after that advance is earned out through sales of the book.

Some examples of small and medium sized independent publishers are:

• Harlequin
• Soho Press
• Bella Books
• Nightshade Books
• Kensington Publishing Corp
• Grove Press

One of the most comprehensive and up-to-date resources on publishers is the annually updated Writer's Market published by Writer's Digest Books. However, they charge a fee for you to research publishers and also keep track of your submissions through their website, writersmarket.com.

E-Publishers

Publishers offer books in electronic format, known as e-books, which readers can purchase and download to any type of device. E-books are increasingly available through publishers' websites and at online bookstores. Some authors are being offered e-book-only contracts, and some publishers put out only e-books.

The most popular genres for the e-book format have been romance and erotica. Going straight to e-book is appealing for authors just starting out in those genres, and for authors who see it as a first step to commercial print publication.

Some publishers specialize in publishing e-books. Many of these e-publishers don't require manuscripts to be agented, so you can submit your work directly to them. Increasingly there are avenues for authors to publish their books in electronic format, bypassing publishers and agents entirely.

E-books are quickly increasing their market share, and the audience for this format (readers who have the appropriate technology and disposition) is growing. In 2010, Amazon reported sales of e-books exceeded sales of hard covers for the first time.

Though an e-book never gets put on a table at a big box or independent bookstore where the cover might catch the interest of an unsuspecting reader, and they are unlikely to get reviewed in mainstream media, the e-book format effectively removes the distribution barriers to self-published works. If authors can effectively spread the word about their work, then it can be quickly, easily, and inexpensively downloaded on a very popular device.

Most e-book original contracts don't include an up-front advance. The author typically receives royalties as books are sold. If you decide to publish your novel as an e-book, be sure to research the publisher and carefully examine the contract you are offered.

Self-Publishing with Print-on-Demand

Print-on-demand (POD) uses digital printing technology that enables books to be printed in minutes. They can even be printed at the point of sale. Though many small presses use POD technology to print their books, as an author you can contract directly with POD services to use that same technology to self-publish your book, from getting an ISBN number, to printing and binding the pages. How you distribute the book is up to you—and this is the one disadvantage of self-publishing POD. If you have a ready audience and channels for distributing your book, then this may not be an issue.

What exactly is an ISBN number? An International Standard Book Number (ISBN) is a unique thirteen digit identifier assigned to a book by the U.S. ISBN Agency; booksellers need that number in order to offer a book for sale. If you are going to distribute your book yourself you don't need an ISBN.

Most POD service providers charge a fee, some offer templates, and many provide editing, cover design, or marketing services for additional fees. This is a service business, so manuscripts usually are not screened. How much of the proceeds from the sale of each book goes to the author depends on the business model for the POD service provider. Some sell books directly to customers and a portion of the sale price goes to the author; others sell books to the author, who in turn, sells them to consumers (your readers).

The average POD book sells fewer than 200 copies. Often bookstores will not carry self-published books as they are often not discounted and cannot be returned. Libraries will consider purchasing them if there is a demand from their patrons. Getting a book review in the mainstream press or a feature article about the book or the author in public media is especially difficult. On top of that, most POD services do not accept returns; big-box stores and independent booksellers rely on being able to return unsold books, so this can prevent them from being willing to stock your book.

But self-publishing POD is a good alternative for authors who want to avoid the time-consuming standard publishing process, do not need to sell a large number of books, or who will be distributing the book privately.

Here are some reputable POD services:

• iUniverse
• Xlibris
• Lulu

If you decide to use a POD service, read your contract carefully and know what you are getting yourself into. Ideally, you should be looking at these questions:

• Does the contract enable you to keep all the rights to your book?

• Are you locked in for a period of time, or are you free to end the contract at any time without penalty?

• Do you own the files that are created to publish your book, or is there a fee you would have to pay to get them if you decide to leave the service?

• What will it cost you, at a minimum, and what will you get for that amount?

• Are there additional charges for including graphics?

• Does the cost include cover design; can you provide your own cover design if you wish?

• Does it cost additional to distribute the book through one of the standard distribution channels like Amazon or Ingram?

• What will it cost to ship books that customers purchase?

• Do you have control over the design of the book?

• Does the publisher set the retail price, or can you set it?

• Are the printing costs reasonable?

• Can you set the price so you offer a discount to booksellers?

• How much will you receive from the sale of each book?

• Does the finished book look professional?

Compare several services, get your hands on some of their titles to see their production values, and research recommendations from their customers before you decide.

Contests

Winning a contest with your unpublished work can give you that one extra bit of cachet that will make an agent or editor give your work serious consideration. Some contests offer a prize of actually publishing your novel.

But there are contests and there are contests. Most of them charge a fee to enter, and some are scams. But others are completely on the up and up. If the first prize is a publishing contract, do your research and make sure that this is a publisher that you really want to publish your book.

Authors have launched successful careers by winning a contest. Some contests out there include:

• St. Martin's Press and Malice Domestic - Best First Traditional Mystery Contest.
• Delacorte Press - First Young Adult Novel Contest.
• Amazon and Penguin Group - Breakthrough Novel Award.

But authors beware! There are so many fake contests and awards out there, designed mainly to fleece writers. Make sure any contest you enter is legit. The Preditors and Editors website (pre-ed.com/pubctst) evaluates writing contests based on a set of criteria and feedback from their users.

What avenue do you think you'll take to publishing your novel?

If you enjoyed this part, don't forget to vote!