Posts Tagged ‘middleman’

Taking Less To Get On The Map

Saturday, February 4th, 2012 by

I was reading about a company where the business model is to essentially gather a large group of people to produce content where they essentially act as a middle man when it comes to collecting money from various affiliate programs. While the content creator could easily just enroll into the program themselves where they would essentially be cutting the middleman out, essentially what the company does to pitch people to go through them instead is that they basically try to get all these guys under one roof where everyone s viewing each other’s work. So in a sense it’s a way for people to speed track their promotion and advertising.

I was having a small talk with a person about this and whether or not it makes sense to do that as you do lose a large percentage of revenue by going with this route. For some reason this reminded me of that Dragon’s Den show where people seek to give out a percentage of their company in exchange for funding to grow the company. Like in those cases if you are starting out with a good idea I think the decision should be largely based on what you can learn and the connections you think it would provide. Like in that example, even if you were getting 20% less as a result of going through the company as a middleman, if they offered you a professional who could help you create the material and provide you the right contacts you can argue that you are saving money in the long run.

Unless you are already established then that is kind of a different story or if you are in no immediate rush.