Craig,
It all depends on what your professional goals are for your typefaces. If you want to do nothing more than make fonts and have other people sell 'em for you, you relinquish profitablity. If you choose to sell them yourself, you'll spend more time getting your foundry geared up and properly marketed but you'll make 100% of every sale.
There are many schools of thought with distribution but overall if you're going that route anyway, you can assume the more places you can distribute the face, the more the face will make for you.
Some places want exclusivity, and for that, you'll always get a higher royalty 50% or better. If you want to push your face through anybody that will sell it, you can expect something more like 20% of the sale which is very low but it's the going rate.
The key to distribution is wrapping your mind around your long term goals of distribution. For example, say you spend 3 weeks making a font. You distribute it like crazy. In 1 year, you make make $1,000 with it, in 5 years $6,000, in 10 years, $13,000.
Now, $13,000 sound like a great figure for 3 weeks of work, but it comes in $250* chunks over quarterly (every 3 month) cycles. So, obviously the more fonts you make and distribute, the greater the chances are that you could make fonts full-time.
*(by the way, many checks will be much closer to $7 to $130 quarterly if the face sells well)
Understand that in addition to being a font creator, you are also that font's talent agent and are responsible for how much the face makes for you over the course of its career.
You shouldn't feel that there is an us/them mentality with distributors. You are seeking these people out because you feel they can make you money. I wish it didn't sound so capitalistic, but that's what your post suggests. And with that, you've got lots of choices when it comes to how you'd like to sell your fonts. Explore them all and draw your own conclusions.
Stuart :D
I just thought id post something about how much commission type distributors take from sales of foundry typefaces. MyFonts is pretty good at 20%, as is a large US distributor again at about the same. A UK distributor is offering 50/50 which sounds pretty sucky. What do people think to this? What are your experiences?