This was in a post Mel made under self-publishing awhile back. The proof would be whether they produce books people pay to read?
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Nobody's talking about Litopia changing. Though it will have to become self-supporting to survive. it's not really now.I personally think Litopia should stay as it is: a forum for writers to engage with and help each other on craft, query, pitch etc. If any tunnel starts to involve cost sharing, some people will get left behind, and Litopia will cease to be the homely, supportive-to-all place that keeps us in its nourishing folds.
There are other costs to be shared, though. I agree that you cannot share the costs of editing for self-publishing but one of the things that can be shared is publicity. The link leads you to an example of writers who formed a coop to help promote and publish each other's work. Pete is incredibly generous with his time and support. Litopia would not exist without his good heart. It is up to creative people to create other havens like Litopia.Photographers co-ops work because there's expensive equipment and real estate that gets owned collectively. There's no such equivalent in writing. I believe in having strong networks with fellow writers, but we don't have to own anything collectively. Meeting frequently and sharing our projects with each other will get us what we need to continue moving forward.