Why a middleman matters to a first-time founder
An intermediary can open a market quickly, provide local relationships and reduce the work needed to reach customers. The trade-off is less control over pricing, customer information and service. Founders should understand the intermediary’s incentives before making the channel central to growth.
Examples of middlemen
A small food producer sells each jar to a distributor for €4. The distributor stores it, supplies independent shops at €5 and the shops sell it for €8. Each participant earns a margin while the producer avoids managing dozens of small deliveries.
Common misunderstanding
The role is not automatically wasteful or dishonest. A capable intermediary may add logistics, credit, market knowledge or access that neither side has. The useful question is whether that value justifies the added cost and distance from the customer.
When to use it
Use one when reaching buyers directly would cost more, take too long or require capabilities your team lacks. Agree who owns customer data, sets prices, handles returns and carries inventory risk. Reassess the arrangement as your sales volume and in-house capabilities grow.