Quote from chief_editor on October 6, 2024, 10:25 am
You’ve been working as a middleman for years, constantly hustling between deals, but why isn’t the money adding up? Let’s start by explaining the difference between a middleman and an agent, so you can see where the real issue lies.
Imagine you have a friend who’s a coal boss, and he has a large batch of coal to sell to a power plant. If you know the person in charge of the power plant and can directly connect with them to make the deal happen, then you are an agent. You have control over both parties and can directly participate in and lead the transaction.
But if you don’t know the power plant boss and instead rely on a friend to make the introduction, you’re still the agent, but your friend becomes the buyer's agent. Both of you have your own resources and are responsible for one side of the deal.
Now, if you don’t know the coal boss or the power plant boss and you’re just relying on a mutual friend who knows both parties, that friend is the true middleman. They’re the one connecting the dots between the buyer and the seller, while you’re more on the sidelines.
The key difference is: agents directly control the transaction’s resources, while middlemen rely on third parties for information and connections. On the surface, it might seem like middlemen play a crucial role, but in reality, without controlling the core resources, your ability to make significant money is limited.
1. You Don’t Control the Core Resources of the Deal
As a middleman, you don’t have control over the buyer or the seller. In other words, you’re not holding the key to the deal. Instead, you depend on information provided by others, like a "messenger" running back and forth between the parties. You might think you’ve done a lot of work, but without controlling the actual resources, you’re always in a passive position. The real money is made by those who control the resources, while you only get a small piece of the pie.
Without controlling the resources, you can’t steer the direction of the deal. Even if the deal goes through, the ones holding the resources take the majority of the profits, and you’re left with just a fraction.
As a middleman, you don’t have control over the buyer or the seller.
2. Information Asymmetry is Your Biggest Trap
One of the biggest challenges for middlemen is information asymmetry. You often receive second-hand information that has been filtered through several layers, losing its accuracy and value. You might think you’ve found a great opportunity, but after investing significant time and energy, you discover the information is outdated or unreliable, and the deal falls apart.
Worse, some of the opportunities you’re given could be bait intentionally laid out by others. You think you’re about to strike gold, but you’re really just playing a minor role in a bigger game. The real players are making the decisions, and you’re left running in circles.
One of the biggest challenges for middlemen is information asymmetry.
3. You Don’t Have Decision-Making Power; You Don’t Control the Outcome
You may feel like you’ve been working tirelessly, running between parties, but when it comes to the crucial moments of decision-making, you have no say. Those who control the resources are the ones who call the shots, deciding the terms and the fate of the transaction, while you’re just a bystander waiting for the outcome.
Without decision-making power, even if you’re involved in the entire transaction process, you remain on the fringes, unable to earn substantial profits.
As a middleman, you don’t have decision-making power and can't influence the outcome of a transaction
4. High Risk, Low Return
Middlemen face high risks due to information asymmetry, lack of resource control, and no decision-making power. You might spend months working on a deal, only for it to fall apart due to inaccurate information or unforeseen circumstances, leaving you with nothing but wasted time and effort. Even when deals do go through, the returns are often far lower than the effort you’ve put in.
As a middle man, you might spend months working on a deal, only for it to fall apart due to inaccurate information or unforeseen circumstances, leaving you with nothing but wasted time and effort.
5. Your Network is Unstable and Difficult to Build Long-Term Relationships
As a middleman, your connections are unreliable and often dependent on others. Each time you facilitate a transaction, you’re almost starting from scratch, relying on introductions or referrals from others. You can’t build a stable, long-term network of resources, which means you’re constantly chasing new opportunities and new contacts, wasting time and energy on every deal.
In contrast, those who control the core resources can accumulate a solid network over time, allowing them to secure steady and lucrative opportunities. That’s the long-term path to success, while you, as a middleman, are stuck on the periphery, constantly scrambling for the next deal.
As a middleman, your Network is Unstable and Difficult to Build Long-Term Relationships
Conclusion:
The reason middlemen can’t make money is because you don’t control the core resources of the transaction, you lack decision-making power, and you’re vulnerable to information asymmetry. High risk and low return are built into the role of a middleman. To truly break free from this cycle, you need to step out of the middleman role and become someone who controls the resources and information. Only then will you gain the upper hand in deals and start making real money, rather than just scraping by with commissions.
You’ve been working as a middleman for years, constantly hustling between deals, but why isn’t the money adding up? Let’s start by explaining the difference between a middleman and an agent, so you can see where the real issue lies.
Imagine you have a friend who’s a coal boss, and he has a large batch of coal to sell to a power plant. If you know the person in charge of the power plant and can directly connect with them to make the deal happen, then you are an agent. You have control over both parties and can directly participate in and lead the transaction.
But if you don’t know the power plant boss and instead rely on a friend to make the introduction, you’re still the agent, but your friend becomes the buyer's agent. Both of you have your own resources and are responsible for one side of the deal.
Now, if you don’t know the coal boss or the power plant boss and you’re just relying on a mutual friend who knows both parties, that friend is the true middleman. They’re the one connecting the dots between the buyer and the seller, while you’re more on the sidelines.
The key difference is: agents directly control the transaction’s resources, while middlemen rely on third parties for information and connections. On the surface, it might seem like middlemen play a crucial role, but in reality, without controlling the core resources, your ability to make significant money is limited.
1. You Don’t Control the Core Resources of the Deal
As a middleman, you don’t have control over the buyer or the seller. In other words, you’re not holding the key to the deal. Instead, you depend on information provided by others, like a "messenger" running back and forth between the parties. You might think you’ve done a lot of work, but without controlling the actual resources, you’re always in a passive position. The real money is made by those who control the resources, while you only get a small piece of the pie.
Without controlling the resources, you can’t steer the direction of the deal. Even if the deal goes through, the ones holding the resources take the majority of the profits, and you’re left with just a fraction.
As a middleman, you don’t have control over the buyer or the seller.
2. Information Asymmetry is Your Biggest Trap
One of the biggest challenges for middlemen is information asymmetry. You often receive second-hand information that has been filtered through several layers, losing its accuracy and value. You might think you’ve found a great opportunity, but after investing significant time and energy, you discover the information is outdated or unreliable, and the deal falls apart.
Worse, some of the opportunities you’re given could be bait intentionally laid out by others. You think you’re about to strike gold, but you’re really just playing a minor role in a bigger game. The real players are making the decisions, and you’re left running in circles.
One of the biggest challenges for middlemen is information asymmetry.
3. You Don’t Have Decision-Making Power; You Don’t Control the Outcome
You may feel like you’ve been working tirelessly, running between parties, but when it comes to the crucial moments of decision-making, you have no say. Those who control the resources are the ones who call the shots, deciding the terms and the fate of the transaction, while you’re just a bystander waiting for the outcome.
Without decision-making power, even if you’re involved in the entire transaction process, you remain on the fringes, unable to earn substantial profits.
As a middleman, you don’t have decision-making power and can't influence the outcome of a transaction
4. High Risk, Low Return
Middlemen face high risks due to information asymmetry, lack of resource control, and no decision-making power. You might spend months working on a deal, only for it to fall apart due to inaccurate information or unforeseen circumstances, leaving you with nothing but wasted time and effort. Even when deals do go through, the returns are often far lower than the effort you’ve put in.
As a middle man, you might spend months working on a deal, only for it to fall apart due to inaccurate information or unforeseen circumstances, leaving you with nothing but wasted time and effort.
5. Your Network is Unstable and Difficult to Build Long-Term Relationships
As a middleman, your connections are unreliable and often dependent on others. Each time you facilitate a transaction, you’re almost starting from scratch, relying on introductions or referrals from others. You can’t build a stable, long-term network of resources, which means you’re constantly chasing new opportunities and new contacts, wasting time and energy on every deal.
In contrast, those who control the core resources can accumulate a solid network over time, allowing them to secure steady and lucrative opportunities. That’s the long-term path to success, while you, as a middleman, are stuck on the periphery, constantly scrambling for the next deal.
As a middleman, your Network is Unstable and Difficult to Build Long-Term Relationships
Conclusion:
The reason middlemen can’t make money is because you don’t control the core resources of the transaction, you lack decision-making power, and you’re vulnerable to information asymmetry. High risk and low return are built into the role of a middleman. To truly break free from this cycle, you need to step out of the middleman role and become someone who controls the resources and information. Only then will you gain the upper hand in deals and start making real money, rather than just scraping by with commissions.
