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particularly as all of this formatting and publishing and worrying eats into writing time
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Yeah, it's a shame, isn't it? As soon as you plan to be independant, there's so much work to do that only a small part of it is left for the creative process ...
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Actually, the site will basically turn into a combination publishing house and retailer. So you're just re-creating the same basic system but with different players.
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With a different approach. The writers would retain all of their rights. And, yes, you could call it a publishing house ... - of the authors, by the authors, for the authors.
In general that's some solid arguments of yours, Kali Yuga. For me the important part is, different approaches
are conceivable. If they do work out at all, time and trial and error will tell.
When seven of the most popular comic book artists left Marvel in '92 to form Image Comics they didn't change the world of comic books.
But they changed the way the "big two" (Marvel and DC) were treating their inhouse artists with better contracts and more creative rights from this moment on. Image itself may be considered a failure. But they did a lot to improve the conditions for fellow artists and writers.
And created a platform for new talents.