Barter
Good ol' fashion bartering has been one of the hottest ways to increase business, increase productivity and increase resources while decreasing the cash flowing out of your business.
The many benefits to bartering are limitless including, but not limited to:
- increase in business contacts
- can be used toward office equipment, space, supplies, advertising, and much more
- improve cash flow
- obtain consultation specialists for your business
The following are ways of bartering:
- Find out exactly with whom you're dealing. Try to barter with someone you already know. Always make sure you're comfortable doing business with her/him.
- Before making an exchange, be sure it is for something you can use.
- Comparison-shop: Find out the cash value of the goods you'll be swapping.
- Get it in writing! Prepare a simple contract or barter agreement that says who'll do what, when and how. Do this even with friends or family members. There's nothing that can ruin a relationship faster than miscommunication in a barter deal.
- Find a reputable agency that belongs to one of the two major trade associations (see below).
- Join a network whose members are located near where you live. You can get referrals from the two trade associations of services.
- Make sure the barter network's members offer things you want or need.
- Before joining, speak with other members. Call or e-mail them at random to gauge the network's reliability.
- Be prepared to pay a membership fee, which can cost anywhere from $150 to $500.
- You will also have to pay a transaction fee that can run from eight to 15 percent, in addition to sales tax, each time you spend your trade credits.
| With a Broker, similar to the network but instead this includes: |
- Check credentials and references.
- Be prepared to pay a broker's fee.
| Classified Ad Web Sites & Craigslist |
- The same rules of thumb follow here as they do with "On your own".
- Be careful who you deal with.
- Verify the offer at hand.
- Don't forget a simple contract or barter agreement.
- Always be careful to research who you're bartering with.
Important Information: Bartering is to be included as an income when tax season comes around. The products/services received are priced at the value at time of trade. Check with your accountant for verification and more information.
Associations:
The National Association of Trade Exchanges
*Information obtained verbatim at Lifetime Television's web site, information page was located http://www.lifetimetv.com/onair/shows/na/index.html.
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