

For a summary explanation of the different types of edits, check out this page.
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For a more in-depth explanation of these edits, check out the blog posts:
Complete first draft

Step away for a few weeks/months; do something fun!

Review and self-edit

Alpha readers

Steps 2 and 3 are often done several times.
Beta readers

You don't have to accept all suggestions at any stage. Figure out what works best for the story.

Review critiques;
revise
Review critiques;
revise

Developmental edit

Line/copy edit
Developmental editing and line/copy editing are often done in two (or more) rounds each to review revisions.

Review critiques;
revise

Proofreading

Corrections

Corrections

Advanced
Reader Copies
(ARCs)


PUBLISH!

Formatting &
layout

Corrections

These are general steps for self-publishing. Seeking traditional publication will change half of these. For instance, some authors still choose to get a line/copy edit before they query while others do not. Authors seeking to traditionally publish will not follow anything here starting at proofreading. Instead, after revisions, they will write a query letter for agents or publishers, create a list of agents/publishers they wish to reach out to, and move forward with that.
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Some writers skip the alpha reader step. They may know they're having issues with certain elements of the story and want professional help, skipping right to the developmental edit step (though they can also hire a writing coach!). ​Finding writers' groups and critique partners can be very helpful as well! They can assist with ideas during the writing stage as well as act as alpha and beta readers later on.
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Not all stories need a developmental edit, although it is strongly suggested for new authors and for complex stories (multiple povs, multiple plots, magic systems, etc.). Traditional publishers will rarely offer developmental editing. They expect major story elements to be done and bigger issues to be straightened out, although they may want certain things changed to their specifications later.
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Line editing and copyediting can be done separately though many editors offer them together. This step should never be skipped when self-publishing.