Part 4/11:
A striking example surfaces with Honey, an online coupon extension, revealed to be engaging in fraudulent practices to claim referral revenue. This not only sparked outrage within the influencer community but also highlighted how even the most seemingly innocent middlemen can exploit their positions.
Understanding the Dynamic of Middlemen
The challenge with middlemen lies in their ability to operate effectively while also being perceived as a hindrance. For instance, the contemporary buyer may click to purchase an item on Amazon, which simply acts as a marketplace. However, this transaction involves multiple middlemen—from wholesalers to manufacturers—each taking a cut of the profits. This raises prices and complicates what could be a straightforward transaction.