Making money purely through distribution as a small producer Is definitely a hard nut to crack. Have to have a fantastic product, marketing, label, location, distribution, sales staff, ect, ect to have any hope of success. As a little guy, distill pub is a great way to go, in my opinion (depending on your state regulations on cocktail sales). Most people get in this business because they want to make cool stuff though, and don't want all the headaches that go along with running a bar/ restaurant, of which there are so many.
The bar pays our bills though, and many nights the bar is slow, are still high earners due to bottle sales, and when both are strong it's off the charts. The symbiosis is great. It is also easier and cheaper to hire and train bar staff than a Distiller, so you can pay someone and not have to work 80 hour weeks... eventually. Your time will be split though, especially if you don't have a partner you can depend on.
If you can create the right environment, building a community of happy regulars and staff is actually as rewarding as creating a great product. Hope it works out for you.