Uncle Jim and I usually agree, but here I have a somewhat different perspective...
Print on demand isn't a business model---it's a technology. The technology is part of a business model that many people (mistakenly, IMO, since POD can be used for a lot of things) identify as "POD". This business model--which includes a particular complex of practices such as no or minimal editorial gatekeeping, high cover prices, short discounts, and no returns--is an adaptation of new tech to the very old business of vanity publishing. Where it differs significantly from old-style offset vanity publishing is in price: POD, because it allows one book to be printed at a time, is much, much cheaper. These new vanity publishers can therefore can charge a low initial fee (at least, compared with the thousands of dollars that print vanities like Vantage charge).
New-style vanities come in two flavors:
- Fairly straightforward pay-to-publish operations such as iUniverse, Author House, Xlibris, Infinity, Trafford, etc, etc, which may hype up the supposed advantages of "self"-publishing and sell worthless adjunct services but basically don't try to deceive writers about what's going on. If you're looking to become the next great American novelist they're not a good choice; but for noncommercial books (such as a family memoir) or niche nonfiction projects (where the author has a way to reach his audience or to direct-sell books) they can be a reasonable way to go.
- Deceptive operations that attempt to hide or camouflage their fees, and pose as "traditional" publishers. Sometimes they bury the fees in the contract (like Washington House/Trident Media, which charges several thousand dollars for "editing"); sometimes they hide them so cleverly that hoodwinked authors think they're getting published for free (like PublishAmerica, whose fees are hidden in its very high book prices and constant incentives for authors to buy their own books). Operations like this, which not only extract money but typically have poor contracts and treat their authors like crap, should be avoided.
Print on demand technology can also be part of a commercial publishing business model. Larger houses use it to print up galleys and ARCs. Smaller publishers may use it as a cost-effective way of producing small print runs. Some perfectly legitimate publishers are entirely POD-based; except for not using offset, they function like commercial publishers.
- Victoria