Fascinating post over on David Gaughran’s blog from Michael Wallace on why he signed a deal with Amazon’s Thomas & Mercer imprint:
My sales accelerated from a handful, to a bunch, to hundreds and then thousands. I sold over 20,000 books in April and nearly that many again in May. The Righteous climbed as high as the Top 20 on the overall Kindle Store.
A funny thing happened. Agents and editors started querying me. Most of the interest was in The Righteous, a series of thrillers set in a polygamist enclave. It was the same series that had been shopped already and had nearly been picked up for good money before everything fell apart.
What had seemed risky a couple of years ago, now seemed like a sure bet, with tens of thousands of sales to prove it. I had an agent already, and I decided to concentrate on the interest from Amazon’s Thomas & Mercer imprint.
via Exclusive: Indie Author Michael Wallace Signs 5 Book Deal With Amazon | David Gaughran.
Eoin Purcell's Blog 
Amazon aren’t messing around.
In the space of around 3 months they have signed J.A. Konrath, Blake Crouch, Barry Eisler, J Carson Black, Ed McBain, and now Michael Wallace.
The Kindle Store is Amazon’s slushpile. And it’s the only one where you can earn money while you are in it!
Yup,
You are spot on.
A good system really!
Eoin