Cut-Out the Middleman Business Model:

In many industries the traditional way to get to your customers is to go through an intermediary such as distributor, wholesaler, broker, or agent.  In this model you will bypass the intermediaries and sell directly to your customers.  A good example of this is the service provided by amazon.com and Printers that let authors become publishers by printing and selling their own books directly customers without going through Publishers, and Distributors.

 

 

 


Other Examples of the Cut-Out the Middleman Business Model
 

Author (Publisher):  An author that decides to beomce his/her own publishing company by writing, publishing and selling books directly to customers by using a PRINTING service such as Amazon Direct Publishing Service (ADP), CreateSpace, Lightning Source, LULU, etc.  Offer customers the opportunity to buy hard cover, soft cover and e-book versions of the book.  Offer quick delivery (overnight, 2-day air, etc.).  Offer discounts on special holidays to attract more customers. 


Taxi Service:
  Generate revenues by providing taxi service by using the Uber app.  Through this app revenues will be shared by the company and Uber.  Customers won't have to worry about paying with cash anymore.  Payments will be made through the app.  Customers will benefit from knowing that they're utilizing a safe and professional service that they can rate. 

 

 

Flower Shop:  This business will generate reveneus by growing it's own flowers and selling it directly to consumers.  It will cut out the middleman by not buying flowers from an outside source and not relying on distributors to get it's products to other retailers where they can sell it to consumers.  This will allow the company to offer competitive discounts and quick delivery service to a limited geographic area.