| When you hear the word 'Barter' do you | | | | players in the national barter arena are ITEX (a |
| instinctively think of two farmers trading a horse | | | | consortium of smaller barter companies) and |
| for a cow, or the likes of latter-day trappers | | | | Merchants Barter Exchange (one of the only 'true' |
| carrying furs to a trading post to exchange them | | | | 100% bartering companies in the US). Both |
| for food and provisions, or like millions of savvy | | | | companies offer many benefits, some of which |
| business owners around the globe, do you think | | | | are: |
| of a high-tech way of marketing your goods and | | | | + Greater efficiency (better use of time or |
| services beyond your usual scope, and becoming | | | | inventory) |
| more efficient in the process? | | | | + Increase in customers |
| It's strange that during my entire business | | | | + Improved purchasing power |
| education at university (and I was fortunate | | | | + Cost-effective exposure to national markets |
| enough to be educated in some of the best | | | | + Measurable ROI |
| business establishments in London, Munich and | | | | + Word of Mouth Advertising |
| Florence)not once did the word nor concept of | | | | Since only businesses can be members of barter |
| barter ever surface - even in economics. Strange, | | | | companies, there is a huge propensity to |
| don't you think, when barter was the foundation | | | | generate new cash clients that are not business |
| of all modern commerce? | | | | owners. Outside of effective networking groups, |
| So, how has barter stayed the 'best kept | | | | like Business Networks International (BNI), barter |
| marketing secret in business'? Simple, it has never | | | | exchanges are the most effective tool to |
| been perfected on a larger scale until recently | | | | generate word of mouth advertising and track it. |
| with the advancement of computers. Globally | | | | Barter companies like ITEX ( and Merchants |
| barter accounts for almost $1 trillion in annual | | | | Barter Exchange ( act as 'third party record |
| business. Little 'mom and pop' stores all the way | | | | keepers' - similar to credit card companies - |
| up to Super Power governments barter, some | | | | brokering and tracking the trades between |
| with more success than others. Most recently, in | | | | members. In essence each member has a |
| fact, the entire country of Argentina had to utilize | | | | bartering account - just like their bank account - |
| the incredible power of barter to pull itself out of | | | | and are allotted barter credits (usually the same |
| bankruptcy, and today over 500,000 companies | | | | value as the currency of the country - but make |
| barter there on a regular basis. | | | | sure to check before joining, as some exchanges |
| Bartering is a very simple concept: it is the | | | | have inflated economies!). Members purchase |
| exchange of goods and services for other goods | | | | things they need - printing, cars, advertising, etc. - |
| and services. In an ironic manner, workers all over | | | | with credits in their account, similar to writing an |
| the world barter their time and skills for a salary. | | | | IOU, and owe back the amount of those goods |
| As a child, you possibly traded playing cards. It's all | | | | and services with their surplus inventory or down |
| the same concept. BUT, how is this an effective | | | | time. |
| advertising/ marketing tool? | | | | Membership fees for such exchanges are very |
| Reciprocal trading, whereby two businesses | | | | affordable compared with other forms of |
| directly trade with one another (radio advertising | | | | advertising, usually much less than $1,000 for a |
| for airline tickets, for example) is not as effective | | | | one-time set-up charge, and broker commissions |
| as trades that occur through barter exchanges | | | | are usually levied on purchases only (generally |
| and often create less publicity and marketing | | | | 10% of the total trade). Again, be warned when |
| opportunities. Utilizing an ethical and trustworthy | | | | checking out bona fide companies, as some |
| barter exchange on the other hand can be a very | | | | charge a lower fee, BUT on both the sale and |
| effective means of bartering. | | | | purchase of goods and services. |
| There are more than 1400 barter companies in | | | | Barter: The Oldest and Most Effective Marketing |
| the US alone, varying wildly in size and scope, and | | | | Tool - So Simple, The Cavemen Invented It...! |
| therefore in effectiveness. The two major | | | | |