Offer from E-publisher

Wait and see what the contract they offer states in its terms. At the moment it would be unprofessional to withdraw the novel once it has been accepted without a very good reason (i.e. you don't like the contract terms). Just pulling out at this stage I think would look bad.

By all means continue to shop it until you have an offer.

For the moment, don't include that you have an offer -- you don't. When you do have that offer, it's perfectly OK to e-mail all the others who have your work and say, "So-n-So has made me an offer to publish, if you are still interested in my work, can you get back to me in X days."

As long as the contract you're signing with the small press doesn't say anything like they want first refusal of your next work or is locking you into a 3 book deal, you should be able to publish your next book anywhere else. However, I am not a lawyer and you should bring any contract questions up with the small press and your contract lawyer before making a decision.

As to whether you should accept the offer, what do you want out of publication? If you want to sell lots of copies, can this small press do that? Do you want to be in Barnes and Noble? Can they do that? Do you want to make lots of money? How are their payment rates? How many books do they move a month? How is their cover art? How are their reviews? Do they support their authors with marketing?

Have you been rejected by your dream agent/publisher? If not, send it to them first. That way you never have any "What if?" questions or regrets that you never tried.

If the small press can meet your needs, go for it. If they can't, move on.

If they aren't a well known small press and you don't sell a lot of copies, it may not be worth it to put it on your resume.

Congrats on the request for revision and good luck!!

Make sure that the option clause doesn't bind you to them forever. Be certain that the reversion clause is favorable.

Write your next book.

James D. Macdonald said:

Be certain that the reversion clause is favorable.

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VERY important. I received a contract offer from a small e-pub press in KY. I had to sign over ALL RIGHTS forever, so I passed! I've actually seen them post on here...I just hope no one signs their contract!

Read the contract and if the terms are agreeable sign it. Shopping the MS around is always an option but most presses are not going to wait an undetermined time for your answer.

If you're not sure about contracts, have an attorney vet it first.