Vanity galleries have existed for several years, and vanity publishers for much longer. They can easily be confused with operations such as real websites with unfavourable terms, but are distinctly different. Vanity galleries and publishers provide the basic services of galleries and publishers where the venture is a joint one with the artist (or writer), in exchange for a fee.
Most galleries which come to mind are ones which pay their own overhead (cost of rent and other operational costs) and make money by taking a commission from the artwork they sell. Vanity galleries, on the other hand, make money by renting their space to artists for a fee. Depending on the gallery, they may also include or offer for an additional fee additional services (such as having someone present at the gallery to answer questions, if the artist can not be present during the entire run of the show). Although vantiy galleries are legitimate businesses, many artists avoid them either because they don't come with the prestige of being hand-selected by a gallery owner, or because they lack the funds or business savy to make use of the option.
Vanity publishers work on a similar premise, and usually approach artists with the proposal that the artist provide images for their publication (usually a collection of work by other artists receiving the same proposal). The collective work is then sold back to the artist, and may also be available for sale in brick-and-mortar or online bookstores. Artists and writers who are not familiar with the publishing process are often unaware of the fact that non-vanity publishers actually provide their authors/artists with at least one copy of the published work at no cost.
The main difference between vanity galleries/publishers and non-vanity galleries/publishers is that the vanity ones request that the artist pay for their services, rather than working with the artist to make sales and take a commission from the sale. It is possible for artists to make use of these options to increase the visibility of their work, but artists need to be aware that they are not dealing with a "traditional" gallery or publisher.
Vanity shows are very similar to vanity galleries, but are usually big events involving many artists. The artists pay a fee to cover the cost of the booth and advertising, and there may or may not be an additional screening process to ensure only quality artwork is admitted (the screening usually happens if the show is more well-known). Vanity shows enjoy much better success than vanity publishers and galleries because they tend to attract many people. Artists should be aware of whether visitors are charged an entrance fee, because persons who spend a fee to see the show are less likely to buy something (although it certainly does happen). The artists rarely get a cut of the entrance fee. Well-known vanity shows include the One Of A Kind Shows in Canada and the Florence Biennial. Many artists have enjoyed the success of direct or indirect sales from these shows, although it usually depends on their ability to sell their own work and their awareness of the market.
None of these vanity venues normally refer to themselves as such.
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