I'm not sure if anyone is following this thread anymore, but I wanted to comment on some of the misinformation, in case someone comes here through a search. It's how I ended up here ;o).
Firstly, while it is true that some of the Board Members met through KIC, it is because we were authors, artists or other talent. KIC was owned and managed by one person, and when she disbanded KIC, some of us decided to pick up where she left off and start up a totally new venture, with totally new and independent management.
Virtual Tales publishes paperbacks, eBooks and eSerials. Submission requirements are posted at our website. As to payment, EVERYONE -- authors, editors, cover artists and management -- are paid via royalties. Editors choose the books they wish to edit, so they have a pretty good idea about the amount of work they will be doing when they choose to take on an assignment.
Here's the bottom line -- Virtual Tale publishes works by new authors. We do not charge anyone anything for the privilege... if we accept a work for publication, it will be professionally edited, given an ISBN and professionally created cover, be professionally typeset and made available in print, eBook and eSerial formats through a long list of distribution outlets (see our website for a complete list).
Some books, of course, are more popular than others... but that's the way the cookie crumbles. The point is, we DO pay royalties, because we do sell books. There really aren't a lot of publishers who are willing to take on new, unpublished authors and give them a chance with no agent and absolutely no money required on their part.
As for novellas, we have published several in both print and eBook formats, so if you have a novella that is at least 30,000 words, please send it to us for consideration. If we like it, chances are good that we'll publish it.
If you have any questions about Virtual Tales, eSerials, etc., please feel free to post and I will try to answer it.
Sheri