In the early days of the internet, its prophets preached that it would bring freedom — a specific kind of freedom that they called disintermediation. In addition to being a very attractive buzzword, disintermediation described the process of cutting out the middleman. Disintermediation promised to get you the best prices on what you wanted to buy, unfettered access to information and eliminate all barriers between you and the product, provider or information you were looking for.
The role of the middleman, though, is a time-honored tradition. While examples undeniably go back further, the first example that I think of is traders who ran ships from Continent A to Continent B, bought a product, hoped they didn’t die on the trip back, sold their product for 20x the price they purchased it for and repeated until they were either rich or dead.
This role of the intermediary would later be seen in print media via priests who could read books (primarily the Bible) and tell you what they said — or at least what they decided you should think it said. This made them some of the earliest editors and gatekeepers of information, and they used it effectively to control local populations.
As literacy became a tool for the common people instead of just the second and third sons of noble families, things changed. People were able to interpret books for themselves, which gave rise to newspapers, radio, television, etc. In all of these mediums, though, the middleman still decided what you needed to see and why, effectively standing between you and information.
Similarly, retailers may have stopped risking life and limb, but Macys and JCPenney still served the intermediary role. They sourced clothing from providers and exercised quality control, which meant you knew what you were buying and had some certainty in your purchase.
Things are different in the age of the internet, though. Now, I go online and buy things directly from my preferred brand. But this has yet to resolve all my problems as a consumer; instead, it’s shifted them. Now, when I order a shirt, it inevitably arrives either in the wrong size because it uses another country’s sizing chart or it’s of such poor quality that I’m not realistically going to wear it. Without an intermediary, the impetus is on me to figure out the right solution and who I can trust to sell a high-quality product.
We see the same issues in media and information. Disinformation has replaced disintermediation as the word of the day, and many consumers aren’t happy. People are starting to miss being able to reliably get products and information that have been vetted and provided by an intermediary.
This leads to an important question: Is the pendulum about to swing the other way? Could we be seeing a shift in thinking that takes us back to the era of the intermediary and gives consumers a more straightforward, less stressful way to buy t-shirts and obtain information?
As you plan the direction of your business, it’s important to be aware of this shift in thinking and to try to position yourself advantageously. Avoid going too macro with this, but I find it helpful to think about what you can do to anticipate and adapt to these changes.
For instance, look back at what your industry was doing in 1950. Then ask yourself, what had changed by 1975? What about the year 2000? And what does it look like the situation will be in 2025? These kinds of broad, major shifts take about a generation to move through the zeitgeist and become ingrained.
As you ask yourself these questions, consider where your business fits in the intermediary vs. no-intermediary debate. I have a foot in each world, with some businesses that can operate great on the one-to-one exchange and others that function as a middleman for consumers. There isn’t a “better” camp to be in, but if you want to be ready for coming changes, then you certainly need to know which approach you’re currently taking, decide where you think the trend is going and plan accordingly.
So, as you contemplate your next strategic move, remember: Whether you’re betting on disintermediation or embracing the comeback of the intermediary, just be sure your business isn’t caught standing in the middle of the road. Because that’s where you'll be run over.
Doug Phares is the former CEO of the Sandusky News Group. He currently serves as managing director of Silverwind Enterprises, which owns and provides management services to small businesses. He can be reached at doug@silverwind.biz.
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