They
work with songwriters. You assign a % of your copyright
to the publisher for a period of time. Their aim is
to make sure that your music is used as well as issuing
licenses, collecting & distributing, promoting &
exploting your songs both mechanical and performing
rights on your behalf thoughout the world.
Their revenue is based on the use of your song. The
publisher will give you an advance when you sign a deal
which is usually recoupable against your royalties.
In other words a publisher lends you some money in exchange
you write an agreed amount of songs a year for an agreed
limited period.
Once
your songs get used you can start recouping.