If you have a picture book text that’s too long for publishers’ requirements, have you considered the short story market? There are a small number of magazines out there, both in print and online, that accept children’s stories and will happily consider a longer length. Here’s my current (short) list which also includes markets for older children’s fiction and young adult; if you know of any others please do comment and I will add them.
The US-based Cricket family of children’s print and digital magazines includes Babybug for up to three years, Ladybug for 3-6 years, Spider for 6-9, Cricket for 9-14 and Cicada for over 14s. They all have different submission requirements so be sure to check out the word counts required by each one.
This beautifully produced Irish-based print magazine accepts stories up to 1,000 words as well as poetry and art.
Knowonder is an online site that promotes literacy. They are occasionally open for submissions of short stories between 500-2000 words but do not pay.
This small but ambitious publisher aims to be the foremost choice for downloading short stories on the web, and payment comes as a percentage of the small download fee charged to customers. Length is 500-10,000 words.
This site is a little different and features young adult fantasy stories up to 6,000 words recorded as podcasts. See this blog post for more details and an interview with a Cast of Wonders author.