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Is this a good strategy?
There are many markets out there where there are middlemen or agents. Take, for example, real estate (or, in the olden days, travel).
Do you guys think it's a good strategy to leverage technology to replace the middleman (i.e. Zillow, Expedia, etc.)?
Obviously the middlemen aren't going to like it one bit. In theory, it's great for consumers (more information, downward pressure on prices), but will they fully embrace the service if they still need the middleman (especially if the middleman is reluctant to use the service)?
I know there are some obvious answers, but I'm curious to hear other people's opinions on this.
- nickb 19y agoYes, but the devil is in the details. You will encounter a lot of pressure if you position yourself as a middleman's worst enemy from the get go. What we did with our startup is to position ourselves as a way for the middlemen to profit... become their friend and learn more about the business. Maybe after you see how they respond to your solution, you can open the floodgates for everyone. Anyway, it's difficult to speak in hypotheticals so without knowing what space you're in, I can't offer more advice. Good luck.