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Horror stories are already out there. I can't count on both hands the number of authors who have purchased "editing" and gotten a couple of commas fixed. I do editing on the side and I don't charge 1200 dollars for an editing package. But I know there are editors out there doing so. And that is all find and good IF YOU EDIT THE THING AND DO IT WELL. It's buyer beware--educate yourself. Know the difference between proofreading, storyline editing and copyediting. KNOW YOUR OWN WRITING and WEAKNESSES so you know where to spend the (most) money. Personally I wouldn't hire an editor who "makes the changes for you" but everyone has to do their own thing. And if you decide to go that route...you might want to check those changes.
There are a number of authors with backlist who don't understand how to upload a book or scan it. I know one author who paid 60 dollar for each conversion/upload. Then if the author wanted to update anything (typo, bio, etc) there went another 60 dollars. SHOP AROUND. Find out what is involved...
Same as any business.
And as for contracts, well, you probably better hire a lawyer or get a good agent. Even that may not save you as some agents make a grab for rights as well. Writer beware. Study first, jump later.
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