I received a letter from Austin Macauley publishing, saying they like my work. Because I'm an unpublished author, they are offering me a hybrid package of paperback or hardcover/paperback, paperback/ebook, and all formats. The contract has first right of refusal on my next work, and repeatedly mention, I own the copyright, and that the copyright returns to me in two years' time. It all looks pretty good, but the reviews of this publisher say it is really a vanity press and they don't pay royalties, etc.
What has your experience been with this publisher? What distinguishes hybrid from vanity press?