Hi Juniper,
my choice of small publishers was/is made by following nine basic criteria:
1) accept e-submissions;
2) accept relevant length;
3) accept relevant genre;
4) are not greedy with rights;
5) the displayed book covers look more or less like the real thing;
6) the website seems geared to readers, not writers - the books are not hidden on page 12;
7) they do not have some experimental avant-garde murky payment scheme;
8) their website's design looks more or less like the real thing.
9) (overlapping with point 5) – they’ve already published other books
...and that's it. When I feel I've reached a more commercially successful level with my writing, I'll start reaching out to agents and big publishers, until then - enjoying life and checking out the small publishers is a fine way, in my opinion, to build ego, experience with the details of the publishing process, and a growing publishing resume.
Or, you could also trap yourself forever into a lower midlist cycle, that’s a danger, but why think of the future when spring is around the corner?
And the small publishers I've worked with so far seem like fine people trying to do their jobs, so we all grow in this together. Not only do I learn from them, I like to think they also learn from me, and indeed from working with every author.
(camera shows audience dabbing at moistened eyes, my stern jawline trembling with manly emotion.)
…But seriously – Kaitie’s point is very good, and my only explanation of the act of sending a second MS without seeing the results of the first is that I feel my beard growing with the speed of the publishing industry, even its supposedly faster smaller members, and I don’t want to wait for another half year.
Or more, if I want to see the first sales figures. Thus I’m taking a risk, and anyway, the contract is for two years, so if anything, I can always revise the books from the higher level that I’ll have in the utopian near future, and then publish them again, possibly under a better selling pen name.
And yes, HistorySleuth, if you make a website that conforms to the 9 points above, I would send you my manuscript.