Many recover the cost through a 12b-1 fee. For them, it is a distribution channel. Compare that to a commission system with a 5 percent fee. It would take as much as 20 years for the fund network buyer to pay as much in marketing costs as he would pay in the first year with a 5 percent commission. This simply isn't true.
Some distribution channels cost less to than others.
This does not mean they are inherently superior. Many people aren't prepared to do the learning necessary to select funds or make asset allocation decisions. I have passed the magic 59.5 years and would like to look into the various options I have for distribution. When I retired, I rolled my 401k over and placed it with Wm. I need to determine if I would be money ahead by taking some distribution now and reinvesting it in funds I select or leave it where it is.