You CAN make money with e-publishing.
There are authors that made already a million with their e-books, but also authors that barely sell a hundred books per year – it all depends on the quality of your book(s) including cover art, layout and reviews – and how well they are marketed. Same how it works with paper books.
There is overhead cost in e-publishing.
Like paper books, e-books need proof-reading, editing, lay-out, cover design, an ISBN number plus converting in various e-book formats for e-Readers and most important: Marketing.
Editing is essential.
Some e-book authors don’t do it to save money, and some e-publishers do it minimal or not at all. But proof-reading and professionally editing is the most important part in publishing.
E-publishers have to invest in e-books.
…or they will fail. Just because authors are rarely paid any advance (but rather higher royalties) doesn’t mean there are no investments to make.
It is not so much easier to get your book out with a reputable e-publisher.
Professional e-publishing houses have their standards to carefully pick their authors in order to deliver quality literature. I am here not talking about vanity publishers that are also to be found in this field and easily can be recognized by charging authors beforehand. I read a good advice: “As an author the only place you should be signing a check is on the back to cash it.”
It can be a stepping stone to traditional publishing.
Yes, there are e-book authors that have been picked up by the “big six” publishers – but with e-books becoming common-place as do e-Reader devices, in the future e-book publishing will for sure overtake paper book publishing – and the “big six” are coming along with it.
More and more people read e-books.
Also paper books will stay with us, there are many practical reasons for e-books: We don’t need to carry heavy stacks of books to the cottage or on the plane. And we can read at night in bed without using a bedstand lamp (my dog hates bright light in the bed room 😉