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Thank you all for the many useful comments. Draft2Digital is interesting. It seems to me that Smashwords really has an eye toward becoming a publisher, similar to what Richard Curtis did with E-Reads.com. That way, the book develops--in more than one sense--a "permanent" association with the company that is "publishing" it.
When we deploy LaunchWords.com, we will provide--among other services--both distribution and publishing. Publishing will be a different animal altogether, with much more investment on our part that merely providing authors with the platform to convert their books into digital form and then distribute them.
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