Tag Archive for B2B bartering

Bartering Tips For Online Business

Back in the early days of civilisation when there was no accepted form of currency, purchasing was based on the barter system. If the caveman down the way had a hunk of dinosaur meat you were interested in, you could offer him a pelt of fur in exchange for it. You got to eat, the other guy got to stay warm. It was a win-win situation.
Things have certainly changed in modern society but the barter system is still in use. Trading products, services, or promotional efforts provides an affordable way to extend your internet marketing reach.

Trading Services
You might be in need of professional services for your company. Often accounting or legal services, necessary for the growth and compliance of your e-commerce company, present prohibitive costs to the small business owner. Why not barter for these services?
Consider offering a free banner ad or a complimentary write-up on your blog in exchange for an initial consultation or a service from a professional who offers the services you need.
If your first offer doesn’t pique the interest of a professional provider don’t give up. Provide a list of things they can choose from. There is bound to be something you can offer that is of interest.

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Promotional Bartering
You can really extend your marketing reach if you partner with others to help spread the word about your online business. This is a simple concept, usually offered in exchange for like promotional efforts.
Working with another online individual or company, you can offer to exchange banner ads, blog posts, a link in a blogroll, or even do-follow comments.
But you can also use other items to barter with. If your website sells products, consider giving something away in return for a posted review, a testimonial, or a referral on a social media site.
Planning an event? Whether it is an online or offline gathering, find the vendors who can supply the needed components, such as webinar software. Ask if you can exchange the necessary product or service for advertising spots on your website or a complete write-up of the event afterward that showcases the vendor’s offerings.
Need a logo for your start-up? Why not offer the graphics artist a direct link from your site in exchange for the design or a deep discount?

General Bartering Tips
Bartering works best if you attempt to exchange items or services of similar value. Offering a blog post in exchange for the complete legal setup of your business is probably not going to entice a lawyer to take you up on this deal. It is easier to make appropriate offers by first assigning a dollar value to the product or service you are using to barter.
If you don’t already have a relationship established with a vendor, provide them a show of good faith by giving something upfront. With so many scam artists on the internet these days, many people are leery of deals from an unknown source.

Business to Business bartering

Originally on http://www.cyberrepublic.net/growth-in-small-businesses-drives-business-to-business-bartering-on-b2betrader-com.html

The dictionary defines bartering as the ‘exchange of goods and services without monetary transaction’. It is simply an exchange of goods between two parties, who need something from each other. This mutual give and take has been practiced since antiquity, but has had its share of problems too. Picture this, a fishmonger wanting a new fishing net goes to a net maker with a handsome catch of fish. But the net maker isn’t interested in his fish. So, the fishmonger has either to remain without a net or make one on his own. And he can’t do either. So, he exchanges his fish with someone else for an item that the net maker would be interested in, and exchanges it to get his fishing net. This is what happened till money made its appearance.

Bartering has not just stayed alive through time, it has made a significant come back in the business world. The International Reciprocal Trade Association reports that bartering today is a whopping six-billion-dollar business-to-business success story worldwide.

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Benefits

Conserves cash: Cash, the lifeblood of business, is always in short supply, whether for a corporate giant or a small-scale industry. Since bartering generally doesn’t require financial transaction, such a deal becomes mutually advantageous, as neither party has to part with cash to obtain the desired goods or services.

Generates sales and profits: Not only does bartering conserve cash, it can actually generate sales and profits. This is because inventory turns over more quickly and service providers sell more of their time than they would otherwise, had they insisted on cash.

Creates new customers: Bartering brings together unlikely parties, which would never have met in the normal course of business. If satisfied with the deal, these parties can refer many more customers to each other, including the ones who pay cash. Even the original barter customer may start paying cash in future transactions.

Moves surplus stock: Barter moves surplus stock, which otherwise would have remained in the storehouse. It also saves money that would have been lost in advertising and weighty discounts.

Utilizes downtime and unused capacity: If you are not utilizing the full capacity of your plant or service all the year round and can handle new customers, then bartering may pave the way for new business opportunities.

Lowers prices: With bartering the goods and services procured always turn out to be cheaper than they would have been with cash, since there are no overheads. This can give you an edge over competitors.

The most common type of bartering is one-on-one or direct bartering that you can indulge quite successfully. The other type of bartering is called the third party bartering. It uses some form of currency to allow more dynamic exchange between the parties. Businesses generally use both types for best results.
Take advantage of this proven age old process and keep your business alive.

An unsung marketing tool: business barter

Originally on http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/sales/an-unsung-marketing-tool-business-barter/article2142109//
By: Ryan Caligiuri

I think of marketing as being all about finding the right strategies and tools to help your company grow.

That means everything from finding competitive advantages to implementing multiple lead-generating programs to using a variety of ways, from traditional advertising to social media, to spread the word about what you have to offer.

ou also have to have in place strategies to keep costs in line – and find ways to get products or services your company needs to grow that you would normally pay for with cash, but which you might not be able to afford.

That’s where one of the oldest and most underutilized tools in the entrepreneur’s tool belt comes in. It’s called business barter.

It’s not rocket science and it’s not new, but for many small and cash-strapped businesses, it can be a very effective part of the arsenal for growth.

Running a small business, I like to keep my cash close and have to be careful about how I spend my money. I don’t want to spend on things I know I can barter for when I want something from someone, and I can give them something — my marketing services — in return.

Think I’m kidding? I’ve used barter for the last eight years to acquire everything from marketing materials to office furniture to a company car. Right now, I have three barter deals going for a complete website redesign; for a company rebranding (logos, business cards, etc.); and…for suits and ties.

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Bartering can help your company look and act the part.

A former client really wanted to give off the image of being an artsy and forward-looking organization. Its furnishings didn’t go with the image.

So it bartered its marketing services with a furniture retailer — and when clients saw the new, higher-end and more artsy furnishings, they commented on how much they matched the company’s branding.

Companies have not only saved money using business barter but have also created revenue streams out of these transactions.

Take, for example, a small radio station in Florida.

It was having a tough time making revenue to keep its doors open, so the owner decided to trade his product – advertising – for other products and services.

His first barter transaction was to swap advertising time on his radio station for about 1,000 electric can openers.

Most might look at this and see no opportunity, but the owner saw plenty and decided to try to sell the can openers over the air.

After a very short time, he sold them all, and made enough money to keep the station open.

But he didn’t stop there. He decided to continue trading products and services for advertising time. Continuing on this path, he turned that once-struggling station into a company that now generates about $1-billion a year in sales.

That company, by the way, is now called the Home Shopping Network.

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There are two types of barter that a small business can explore: a one-to-one trade or triangulation.

One-to-one trades are the simplest form of barter. You simply go to the most suitable business and propose a trade of your product or service for one of theirs.

One-to-one trades can also allow small businesses to enjoy significant cash savings, because they can trade something at retail for something of equal value in the marketplace.

For example, you might trade something you have to offer for $10,000 of equal retail value that might have only cost you $1,000 to develop. You end up saving yourself $9,000.

The other form of barter is called triangulation. That’s when you involve three or more transactions in a barter deal.

This form of barter comes in handy when the straight one-to-one transaction doesn’t work out because your initial partner is not interested in your product or service.

In that case, you can find another partner with something your initial partner may want. Get control of that product or service and then go back to the initial partner and complete the trade.

For example, let’s say you’re a creative agency and need new furniture for your office. You already tried trading your creative services with a furniture store but it wasn’t interested. So you ask what it would like. The answer: New carpets.

Knowing this, you go off to find a business that deals in carpets and propose a trade of $10,000 worth of carpet for $10,000 of creative services.

If they agree to the trade, you now control $10,000 worth of carpeting and can go back to the furniture store and trade it for $10,000 worth of furniture that you need for your own business.

If you’re going to try bartering, start with someone with whom you have a level of rapport. Maybe you know Web designers, graphic designers, printers or advertisers who might benefit from your products and services. If not, try out your first triangulation deal.

Be flexible and make sure you come up with a win-win proposition. If someone else charges more hourly for their work than you do, you may have to offer more hours of your time for less of theirs.

Think about the things that are missing in your business that you can’t afford to pay cash for but that would help your company grow better or stronger. Focus on going after barter deals for them.

Whatever you decide to do, start small. It will allow you a chance to refine your pitch, get comfortable with the process and become a seasoned specialist in business barter.

Some Benefits Of Using Bartering For Your Small Business

Originally on http://www.freefinancialtoday.com/2011/08/19/some-benefits-of-using-bartering-for-your-small-business/
By: Jules Vandermint

Bartering is becoming ever more popular as a method of commerce. The US Department of commerce says that between 20% and 25% of all of world trade is now done through this sort of method. As such, if you are setting up a small business then it is a good idea to take advantage of this tool. If you do choose to do this, here are some of the main benefits of using bartering for your small business.

One of the main benefits is the fact that barter increases new business opportunities. You can attract customers and referrals who would not have known about your business had you not joined a Barter network. Members of the network will be a lot more likely to choose you over your competition as there will be no outlay of cash and you can instead use Barter credits. This will then increase your cash sales due to the additional exposure and through referrals.

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Barter will also expand on your customer base. You can maintain your current customer base while continuing to expand on it through your network. If you offer a better service to your current customers then they are far more likely to pass on word of your service to others and therefore this will begin to increase your overall customer base.

The lifestyle that you lead will also improve as well. Being part of a network offers numerous benefits one of which will be the option of being able to use barter credits rather than real cash when you pay for different services and transactions. In addition to this, if you find a service that you require that is not part of the network you can then recruited then into the network and get a bonus for doing so.

When you want to join a network it is certainly possible to find numerous ones online. The idea that you do not have to live in any specific state joined a network is also a massive benefit.

These are just a few primary advantages that you will see when you join a barter network.

Bartering – A Way To Move Your Business Forward

originally on http://ezinearticles.com/?Bartering-Your-Way-Back-Through-the-Economy&id=6107568 by Brad Rhoades

Is cash tight these days with your business? Maybe you work independently and it’s difficult to find any kind of lending for a small business or for an individual? Or maybe your business needs to expand but there are simply no extra cash reserves. Well, bartering might be a great way to keep your business moving forward by trading your services or products in exchange for someone else’s goods or services.

If you find your business is lacking cash, then this might be a creative way to help obtain new opportunities, goods, or services for your business.

Trading goods or services can be a terrific solution to acquire something in exchange to help improve or benefit your business without using any cash, especially these days when cash is so tight and banks are not lending too eagerly. This could be that out of the box solution to help push things ahead and keep your business and your life moving forward.

According to Wikipedia, there is an estimated of over 350,000 businesses in the United States which are involved in barter exchange activities. And there are approximately 400 commercial and corporate barter companies serving all parts of the world. I even found quite a few websites that let you look up others online to exchange skills, services, and knowledge. So bartering is looking alive and well these days. These online services take a little off the top from a small commission…but that might be something to consider to help find what you are looking for and vice versa.

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You might want to first just sit down and start brainstorming what types of jobs, services, or physical items you can trade with to another business or individual. Then start thinking what services and goods do you need? Who might need your product or service? Who might like to swap with you?

Maybe you are great with social media or computers? Do you have a special skill set to trade? Are you a handyman? Are you a hairstylist? Are you a plumber? Or maybe you are a dentist or an eye doctor? Maybe you are great at organizing things? Maybe you can help another business with accounting? Then barter your services or goods to acquire what you need for your business, in place of paying for cash.

Here are some ideas to get your business moving without any cash… And this doesn’t have to be just for your business… you might want to consider bartering for your personal life? I think we all have to do whatever it takes to get this economy rolling again and bartering might be one idea to help us do just that. I also listed some skill sets to think about trading with? Why not? If you have a skill that someone else wants…find that someone who wants to make a trade.

~ Barter for marketing and promoting your business.
~ Barter to secure a business coach.
~ Barter to get your website built or online business going.
~ Barter to obtain some computer and office equipment.
~ Hair Stylist
~ Math tutor, language tutor, or other educational subjects.
~ Real Estate Agent
~ Home Stager
~ Pest Control
~ House Cleaning
~ Catering Service
~ Photography
~ Plumbing, Handyman, Carpenter, Roofer, Electrician, etc.
~ Accounting
~ Website Designer
~ Auto Mechanic
~ Landscape Specialist
~ Financial Planner
~ Soccer Coach, Martial Arts Instructor, Football Coach, etc.
~ Taxi or Shuttle Service
~ Make-up Artist

This list could go on forever but I hope this gives you some ideas to work with and I would encourage going online and researching for more ideas. Also, you can barter things like jet skis, pick-up trucks, tools, furniture, computers, and that list goes on forever as well. So if cash is tight these days then make a trade and keep things moving forward. Again, we all need to do whatever it takes to make this economy and our lives strong again.

So be creative, be persistent, and make it happen!

Bartering Sees Comeback with Businesses

originally on http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd by Tacoma Perry

Small business owners are getting creative during these tough economic times and sometimes that means conserving their cash.

And now, an old currency system is seeing new life and it’s helping small businesses survive and thrive.

Remember back in the day, in school, when you used to trade your cookies for a juice box or chips? Well it’s that same concept that’s allowing small businesses to keep their doors open in otherwise tough times.

It’s not a new concept, but among small businesses with tight budgets and dwindling customer prospects, it’s seeing a comeback – it’s bartering.

“Bartering essentially has been around since the beginning of time, even before your most common forms of currency being coins and then bills. People were essentially trading what they had for what they needed,” said Todd Gerry of Tradebank.

And while traditionally bartering has been done on a one-on-one basis, the concept has gotten much more sophisticated with the rise of bartering networks like Tradebank. Small business owners can offer their service or skill to hundreds of other businesses and get needed services or products in return.

“I get all my landscaping done, painting at my shop, gutters, dental care, I get all my basic necessities – prescription glasses,” said Joe Cox of Georgia Electric Service.

And he’s gotten those necessities without using cash. Joe cox is the owner of georgia electric service – and in exchange for his services, he says he’s able to get about 80% of what he uses on a daily basis. At a time when most businesses are cutting advertising budgets, cox has expanded his.

“I’ve got a billboard downtown, two blocks from the capital that I’ve got 100 percent on trade as well,” said Cox.

According to the folks at Tradebank, you don’t have to barter a lot in order for it to help your business. In fact, they say if you just barter 5 percent of the time, you can increase your bottom line by more than 30 percent.

“You normally have to spend time and money getting cash business, with barter, I actually have to turn away business. I’ve got more than I can do,” said Cox.

Tradebank is just one of dozens of bartering networks out there. They charge a one time retainer fee and a quarterly accounting fee – but both Cox and Gerry say your most important commodity is your service, skill or product.

“Everybody needs electrical work at one time or another. So it’s been a very positive experience for me,” said Cox.

“I think that business owners now more than ever realize that they’re going to have to be innovative in terms of how they bring new business through their doors,” said Gerry.

Experts say the key to bartering is finding the right network for you.