I don't think self publishing will ever completely take over as every author aims for main stream publishing and the prestige which goes with it. (Not necessarily fame but more the acknowledgement of the quality of writing - Many people still look down on self published books without even reading them.)
I'm self published through YouWriteOn.com I therefore didn't pay to be published but I did pay Cornerstones Literary Assoc to edit my books. They have main stream published authors edit your work and I've found it absolutely invaluable. I've had only extremely positive comments from readers, but still find them often infavourably pre-judged by those who haven't.
I agree to some extend with comments above - royalties are extremely poor from publishers. My royalties are fantastic from YouWriteOn, but I do have to do my own marketting. This is, as stated above, extremely time consuming and leaves little time for writing the sequels.
Maybe there's room for agencies offering reasonably priced publicity packages to the self published?
I think the move to epublishing will increase though. My first book is on kindle and is much cheaper than the printed copy. As self published authors offer lower prices, readers, who otherwise would have ignored their work, may well give them a try because what have they got to lose? Just a couple of pounds/dollars or less.
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