According to Investopedia Barter, bartering is an act of trading goods or services between two or more parties without the use of money. When I first started my business, I used this system often. I still use it to this very day, in case you were wondering.
Key Takeaways:
- The oldest form of commerce (the activity of buying and selling)
- Businesses and individuals barter goods and services between each other based on equal values in the price of the respective goods or services
- The IRS could tax you if income is generated
- Any item or service can be bartered
Benefits Of Bartering
When I started my business, I did not have a lot of money, but I knew people that could help me. I offered my services to them at no cost. In return, they provided their time and talent to me. Bartering allowed me to form a deeper relationship with a person. To this day, I can call on these people for support, their services, and business relationship. Gaining people’s trust is the most important value I reaped from this exchange system. In business, having people’s trust is HUGE!
How Individuals Barter
When two people have an item or service the other wants, both parties will agree to a set of terms and conditions. It is imperative that these items or services are of equal value. Most importantly, you must honor your word and treat the other person as you would a paying client. There is no room for slacking or not giving your best.
Things You Can Barter For Your Business:
- Graphic design services
- Marketing services
- Catering services
- Cleaning services
- Hair services
- Consulting
- Computer repair
- Car repair
- Financial Planning
- Medical care
- Lodging
You can contact a business owner you know or check on social media and ask to barter with someone. You can try: Craigslist, Facebook, Swapace.com, and Barterquest.com.
Make The Deal: After you have found a barter colleague, you must get the agreement in writing. Make sure you lay out what services or goods will be involved, the date of the exchange (or the work to be done), and any option if either party breaks a promise on their part of the deal. If you are working through a membership-based bartering organization, they will likely provide all the structure and paperwork you need for the agreement.
Be aware, be informed!