Bartering: An Easy Way to Get What You Can't Afford

Many years ago, I worked for a magazine as an ad salesperson. This magazine was also run by a group of barterers that operated a large international bartering corporation. Many of the ads I sold were paid in bartering services and products. Although I needed the cash, most companies wanted to barter instead. Some paid half in cash and half in barter. As a result, I went out to eat at fine restaurants for free! Many of our clients were dining establishments.

It was at that time that I realized just how much bartering played a huge role in the business world. Many companies didn't have the cash flow, but they had awesome products and services to offer, so they managed to get what they needed and wanted through a bartering network. Individuals can become members of bartering groups too, if they have services and products that can be traded for other services and products.

People with little cash who operate businesses acquire awesome goods through trade and barter that they couldn't otherwise afford. It's a win win situation when you trade services and products with someone who wants what you have.

There are drawbacks to bartering. If you trade under a barter agreement, you may not be able to get warranties as paid for work and products.
Another thing I learned while working for the magazine in and turn, the bartering service, was that bartering doesn't exempt you from taxes. This is why it's best to barter with services that keep good track of the bartering for you. Get a tax advisor and be sure you're bartering above board. Also, only barter with reputable companies.

The key to maintaining good barter relationships is to make all deals fair. In other words, barter goods and services with others that are of comparable value. You never want someone to feel they're being cheated or that you are, so make sure to communicate clearly and specifically what you want and need and what they're getting.