Distribution happened lots of ways. A BBS might trade files with a friendly BBS somewhere else. Some people collected them like Pokemon and traded them. Having something valuable that others wanted was a currency. Maybe I sent you my G-File collection and you sent me Dr J vs Larry Bird.
Eventually these files diffused all over the planet and wound up in collections on the internet and CD-ROMs at hamfests. They will spring up in the most unlikely of places.
It's fun to look back on it now, but it wasn't always wonderful. Calling BBSes could get expensive, transmitting files tied up your system for an entire night (no multitasking!) for something that took up less space than a Facebook tracking cookie. The hardware and bandwidth I'm using now would have been incomprehensible back then.