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I divide it into three.
1) Mainstream: Follows Yog's Law (money flows toward the writer). They don't charge you for anything and they do their best to get your book where other people can buy it. In short, they do what a publisher's supposed to do. This can be a large or small house, POD or offset, advance or royalties only.
Two keys here: they publish your book, you never write them a check.
2) Indie: You do it all as much as possible. You really are your own publisher, you pay for everything, you're in control of everything, and you're doing the best you can to get your stuff out there and sell your book(s) to readers.
3) Vanity: Not according to Yog's Law. You pay them to publish your book. You send manuscript and (usually) cash, they sell you copies of your own book.
Mainstream and Indie are about selling books to readers: A good thing. Vanity is about selling books to writers: Not such a good thing.
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