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Most digital publishers are independently owned. Some traditional publishers have digital only. They carry a wide variety of genres. some in romance and erotica only. They are unique in their ability to experiment with marketing and sales details, thereby, allowing them the freedom to figure out what sells and what doesn't. They can re-edit, reprice, freshen up art covers on books and increase the sales of books.
If an author writes novellas, digital imprints can be listed in a traditional house publishers. This is an excellent way to stay in the public eye if that same author of novellas is working on a full length novel.
Digital publishing is great for a new writer or first time published writer. In this case, digital publishing could lead to a deal with an agent or to a traditional publisher contract.
Self publishing will bring you a higher royalty per book sold, but the issue is marketing. Your book will be competing with other books. Digital publishers can market your book in ways you can not. You'll get broader exposure but lower royalty rate on your book.
Digital publishers have competent editors. This kind of expertise is important  to the quality of your work and the marketability of your work by guiding your work in a marketable direction.
1. Choose one that is not going out of business.
2. Make sure thay have knowledge of the market for your genre.
3. Make sure the publisher works with your genre.
4.  Talk to other authors who are signed with a digital publisher. Talk to more than one.
5.   Ask questions. Are the publishers willing to work with you on future books.
6.  Do they accept un-agented writers? (a) Author royalties are typically 35-40 % for independent   digital publications. (b)Most larger houses give 25-30 %  (C) Don't expect advances from digital publishers. Most offer little or no negotitations. (D) Publishing rights to your works is 5 years standard. Movie deals: Consult a lawyer before signing anything.
7. Research the publisher before making a deal.
8. Be prepared to work hard in the marketing and sales of your book.
9. Don't give any up-front money to have your book published.


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