What is a Middleman?

A middleman is a person or business entity that provides a service as a link between two parties. They take on the role of a mediator, connecting two parties and providing a service that allows them to interact together in a mutually beneficial manner. Middlemen are commonly used in many industries and are a key component in facilitating transactions.


Middlemen can be found in a variety of industries, including:

  • Real Estate: Real estate agents are middlemen who act as a link between buyers and sellers of property. They provide guidance and advice to both parties and facilitate the sale of the property.
  • Retail: Retail stores are middlemen between manufacturers and consumers. They provide customers with access to products from various manufacturers and allow them to purchase items in one convenient location.
  • Transportation: Transportation companies are middlemen between shippers and receivers. They provide a service that links the two parties and allows goods to be transported from one location to another.
  • Banking: Banks are middlemen between borrowers and lenders. They facilitate the transfer of funds between the two parties and provide services such as loans, savings accounts, and investments.


Middlemen are a key component in facilitating transactions in many industries. They provide a service that links two parties and allows them to interact in a mutually beneficial manner. Understanding the role of middlemen and how they can be used to your advantage is essential for any business.