7 types of middlemen who can save you money


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On the Internet, finding deals is easy with the click of a button, though purchasing directly isn’t always the cheapest way to go. Hiring a service where a middleman gets a cut can sometimes save you money as the buyer or make you extra money as the seller.

“It’s a naïve notion that middlemen take a big slice of the pie,” says Marina Krakovsky, author of “The Middleman Economy: How Brokers, Agents, Dealers, and Everyday Matchmakers Create Value and Profit.” While they may take a commission or charge a fee, “the good ones increase the size of the pie,” she said.

The more that’s at stake, the better the reason to hire a middleman, Krakovsky says. A high ticket purchase like a house, car or vacation abroad requires a lot of research to maximize savings and get the best deal.

“There’s an opportunity cost to doing it yourself,” she says, and a middleman can more quickly identify value and quality.

Here are 7 types of middlemen that can save you money.