A middleman is a broker, go-between, or intermediary to a process or transaction. An intermediary will earn a fee or commission in return for services rendered in matching buyers and sellers. Many industries and business sectors utilize middlemen, from trade and commerce to wholesalers to stockbrokers.
How does a middleman work?
A middleman is someone who works buying goods from one source and selling them to another. For example, if you are selling your house, your real estate agent acts as the middleman between you and the buyer. ... While sometimes it makes more sense for farmers to sell directly to stores, a middleman can simplify the process.
Who are the middlemen in foreign trade?
An intermediary acting as an agent or dealer between buyers and sellers. In international trade, a middleman usually charges a commission as percentage of the sales effectively made through a Intermediary Contract for Trade Operations.
What is an example of a middleman?
A middleman is someone who works buying goods from one source and selling them to another. For example, if you are selling your house, your real estate agent acts as the middleman between you and the buyer.
How can a middleman make money?
Understanding Middleman Intermediaries also make money by selling the product for more than its purchase price. This difference is called the "markup" or cost the buyer ends up paying. Intermediaries can be small companies or large corporations with an international presence.
Is middleman legal?
A person who has been employed as an agent by a principal, and who has employed a sub agent under him by authority of the principal is also a middleman. The agent is not generally liable for the wrongful acts of the sub agent.