I've never tried to go to Russia, but the process you describe is the way to go if you can spare an extra $100.

For example, it's much easier to get a Chinese visa by paying this company across the street from the Chinese consulate in SF than it is to go there. I think everyone that speaks Chinese knows how to work the system, but I don't speak it at all.

They turned me down for having a bent corner on my passport, lol, after taking my money. I just gave up and used the company across the street for my second try.