December 13, 2012

Three PeopleEvery so often I stumble across a word that’s special. One such word is disintermediation. In plain English, it means getting rid of the middleman. That’s what most internet businesses that sell physical products do, and you need to understand the process for your marketing strategy.

Examples of disintermediation

Look at Amazon. They ate the lunches of traditional booksellers. How? By seeing that there was no real need for brick and mortar stores with their expensive overhead for rent, utilities, personnel, and inventories of books. All of that translated into savings, savings that Amazon has shared with its customers to their mutual advantage. You could find countless examples of this. E-bay is explicitly built on this very principle.

There are countless ways a company could perform this service. And be sure, if you aren’t the one figuring this out for your industry, someone else is and they’ll be eating your lunch soon.

A constant process

Marketers always need to remember that customers don’t care about them. Not really. Remember the cult of Apple? Samsung is now eating their lunch, at least in smartphones. What customers care about is the experience you deliver to them. Your marketing needs to be thought of in that light. What good is it to reach out and corral 100 new customers if 50 of them are going to be dissatisfied or worse, seek a refund and bad mouth you?

The good news is that there are tools and resources out there so you can get help doing what needs done and doing it right. There are many software services you can use, often free, that will greatly simplify your business.

Two ways of looking at disintermediation

You actually need to look at disintermediation two ways. Yes, there is the customer side of the equation, as discussed before. But there is also your own side. Consider for example the hiring of services. For your business doing internet marketing you do not need to hire employees with all of the attendant costs and difficulties. You can contract people from around the world at lower prices to do projects to your standards. You keep using them if and when they suit you.

In this manner there’s a kind of balance established. Yes, you will have to cut your margins to compete in offering whatever you sell, but whatever resources you use to make and deliver it are getting cheaper and more efficient too.

Tips for effective disintermediation

So, recognising the reality here is necessary to your success and maybe your survival. Here are a few takeaway tips. Look broadly at options for getting work done. There are many more and better options today than even 10 years ago. By the same token, keep a very open and inquisitive mind as to how to things get done. You may not need a person at all. Many things are now automated, even things requiring professional results, like creating legal contracts. Even when not automated, most things can be done just as well via the Internet by someone who is eager and skilled as by someone local. You’re still getting rid of the middleman–in this case, distance.





Sean McPheat

Managing Director

The Internet Marketing Academy


(Image: Stock Xchng)

Leave a Reply

Your email address will not be published. Required fields are marked *


Follow the IMA

Receive Blog Updates

Enter your email to get more internet marketing tips

Recent Blog Posts

The Qualities All Creative People Share

The Qualities All Creative People Share

Whether you asp ...
3 Mistakes All Start-Ups Should Avoid

3 Mistakes All Start-Ups Should Avoid

If you have inv ...
How To Improve Your Online Reputation

How To Improve Your Online Reputation

An online reput ...
Are Broken Links Holding You Back On Google?
Struggling To Stump Up Blog Content? Try This…



Please enter your details below &
what you're looking for and we will get
back to you with a quote




Your message:


Home | Training | Courses | Contact Us| XML Site Map | Blog RSS Feed | Feed

Internet Marketing Academy
Head Office:
GHL House
12 - 14 Albion Place
ME14 5DZ

Telephone: 0800 000 0000

Terms & Conditions  |   Cookie Policy

Follow Us Online