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Great question. Basically, paid distribution services usually guarantee Google news inclusion, are listed higher on the distribution website, allow you to create your own anchor for links, some type of helpdesk support, and usually have a broader reach (email top stories to list / more traffic to site / etc). Below is a list of the features a $200 release receives at prweb.com
Ten Industry Targets, URL Keywords, NewsCrafters Consultationâ„¢, News Image, Hyperlink Anchor Tags, Increased Google Sitemap Placement, eBook Creation Wizard, Yahoo Site Match 3x, SEO Statistics, Next Day Distribution, Five MSA Selection, eBook Industry Digest, PR TrackBacks, PR Tag Clouds, SEO Wizard, Quotables, Pheedo Distribution Network, PRWeb Page One Inclusion, Social Bookmarking, Yahoo Site Match 2x, Three MSA Selection, RSS Group Feeds, ViewNews Daily & Category Inclusion, Yahoo Site Match, Topix News Inclusion, Yahoo News Inclusion, iFrame Website Feature, PDF Release Version, PRWeb Page Two Inclusion, Five Industry Targets, Two MSA Selection, Image Thumbnails, Account News Feed, eMediaWire Distribution, File Attachments, Google News, Hyperlink URL Activation, Industry Feeds, Newspad Search Engine Inclusion, Basic Statistics, RSS Group Creation, Printer-Friendly Version, PRWeb Help Desk Support,PRWeb Hosted Release
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