Business owners have been bartering since the beginning of time. But a slow and uncertain economy has triggered a sharp increase in bartering among entrepreneurs.
 
The bottom-line reality is that bartering is a sound and proven practice in any economy. Whether bartering for business or for personal reasons, it’s a fundamentally simple process that’s worth exploring. Here’s how it works:

Bartering involves trading goods and services directly with other businesses for something of comparable value. Thus, both businesses profit from the arrangement.

Bartering can save thousands a year

The barterer’s mission is to make the right connection quickly so the exchange can be made effortlessly. The most important reason for bartering is enormous savings – thousands  of dollars a year. Another important reason is that it opens networking opportunities, leading to new suppliers and customers. Lastly, bartering is fun. Expert barterers relish and enjoy being part of an ancient business practice that is fundamentally sound regardless of the times.

Two bartering commandments

Commandment 1: Know the approximate cash value of goods or services to be bartered.

Commandment 2: Limit confusion and ambiguity by trading similar products or services. This is an important commandment for business owners  new to the bartering game. Example: Business owners barter business machines or technology for similar machines. The trick is establishing fair or reasonable market value of items to be traded.

Veteran barterers trade dissimilar products or services (advertising for products or services, for example) and wheel and deal on two or three bartering Web sites at the same time.

Barter Web sites

There are several bartering Web sites that are used by individuals and businesses. It’s best to look at the top ones and decide which best meet the business’s needs. Here are a few popular sites:

SwapThing (www.swapthing.com). This active site boasts more than 3.5 million available items. Swappers must log in and create a password. They can then swap any combination of items and services, as well as make direct purchases. For unequal exchanges, cash is acceptable to balance the transaction.

Craigslist (www.craigslist.com). This active, popular global site offers a wealth of information on every popular topic. It has an active bartering section, which is updated daily. Trade with anyone on the planet, or limit trades to people within a particular city.

JoeBarter (www.joebarter.com). This easy-to-use site offers a plentiful array of products and services that are frequently bartered. The best part is that everything can be accessed from the home page.

Frequently bartered services and products

• Information products. E-books, how-to videos, cassettes, magazines, newsletters, paid e-zine courses.

• Advertising space. Banner ads, e-zine ads, e-book ads, magazine ads, newspaper ads, TV ads, fax ads, online ads and classified ads.

• Software. Popular programs cover taxes, Web-site authoring, newsletter creation and graphic design.

• Writing/editing. Web-site content, promotional articles, press releases, e-zine articles and promotional e-books.

• Consulting. Covering specific marketplaces, legal, computer and software and business specialties.

• Copywriting. Brochures, business cards, classified ads, sales letters, product packages, banner ads, promotional products.

Bartering caution

Experienced barterers never get ripped off. Newbies, however, are prime prey if not careful. Bartering went high-tech a long time ago. While many barterers exchange snail-mail letters, veterans of this respected trading strategy do all their negotiations online, typically on bartering Web sites that generate a great deal of traffic.

Established bartering Web sites follow best-practice rules: Members register and complete a profile; have clear FAQs; published testimonials; contact information and 24-hour hot lines are easy to find. Reputable sites make it easy to solve problems and answer questions. Obvious red flag: Contact information is buried or unavailable.

To learn more about bartering in Canada, visit Business Partnerships Canada’s  Web site, www.businesspartnerships.ca.