VMI is saying that they are a subsidy publisher not a vanity publisher. I tend to lean towards what everyone is saying here - I don't see the risk on their part. But I'm confused about the difference between subsidy/vanity (even though I've read the definitions on this site). Help?
In theory, there's a difference. With a vanity publisher, you not only pay 100% of the cost of publishing your book, but the publisher's overhead and profit as well. A subsidy publisher, by contrast, contributes something of value to the relationship--sharing the financial outlay, providing services above and beyond what your fee pays for. In other words, with vanity publishing you take on the full financial risk. With subsidy publishing, the risk is shared. Subsidy publishers are also more selective than vanity publishers, and make genuine attempts to market their books.
Remember, though, that I said "in theory." It's rare to encounter a true subsidy publisher these days. While many so-called subsidy publishers do use some elements of the classic subsidy model (retaining rights and paying royalties on sales), they are vanity publishers in all the ways that count--minimal selectivity, charging fees that cover all costs including overhead and profit, doing little in the way of meaningful distribution or marketing. This hybrid business model is actually the worst of both worlds, since it presents all the disadvantages of vanity publishing (a fat fee and little credibility) and none of the advantages* of subsidy publishing (actual cost sharing and genuine marketing).
Companies that call themselves subsidy publishers are likely to do so not because it truly describes their business model, but because it sounds nicer than "vanity publisher." Other euphemisms you may encounter: co-op publishing, partner publishing, author investments, collaborative publishing.
For a more detailed discussion of subsidy vs. vanity, see the
Vanity and Subsidy Publishing page of Writer Beware.
- Victoria
* "Advantage" being used here in a strictly relative sense.