RavenHood Publishing buys the rights to an author's brand new manuscript. Buying rights from the author is how book publishers have traditionally acquired books. Usually an agent, representing the author, negotiates the deal with the book publisher and in return gets a percentage of any monies earned from the sale of the author's book. Part of the arrangement includes payment of a stipend that does not have to be paid back. In return, the author, working with an in-house editor, is expected to finish writing the book in an allotted time. Royalties are based on a mutually agreed upon percentage of sales. The book publisher budgets funds to promote and market the book - this amount varies greatly depending on the marketability of the book. The author is often strongly encouraged to hire a book publicist and to work aggressively to promote their book. The book publisher has the final say on every aspect of the author's book, from editorial content to cover design to the number of books in the first printing. The book publisher makes the determination, based on declining sales, as to when to allow a book to go out of print - this could be as short as a year or even less.
As an author, understanding how your book works its way through the process. Never forget the fact that publishing is a business, your manuscript is a product and you, as the author, are a commodity. When you sign that contract, your manuscript is packaged, priced and sold to make money.