How to Barter Business and Services

Barter business exchange was a common way of doing business back in the old days, but it's making a come back as the economy gets tougher every day. There are a lot of benefits to the barter trade exchange system. You can create your own barter business exchange, or join a formal bartering company to facilitate finding others who are interested in bartering. In this recession, it's smart to use the barter system to exchange products and services.

Difficulty: Easy

Instructions

Things You'll Need:

• internet connection
• barter agreement
• barter partners

1. Talk to other professionals who you might be interested in using a barter business exchange agreement. If you are a professional book keeper, ask your yoga studio or child's daycare center if they would be interested in working out a barter agreement to trade services. Clearly define what the barter will entail, hour for hour trade, or based on each parties prices for services rendered.

2. Check with the chamber of commerce, networking events, and websites such as Craigslist to find professionals who are interested in bartering.

3. There are many online exchanges, called bartering companies which you can join to trade services with others. The company keeps track and assigns points or trade credits. The National Association of Trade Exchanges has resources where you can locate bartering companies. See resources for website.

4. Make sure to use your retail pricing as trade value and not a reduced or wholesale rate.

5. Keep records of your barter exchanges for tax records. Bartering is required to be accounted for and most barter exchanges will provide you with proper forms. The barter system can be used for services or products, but is considering to be income by the IRS so should be accounted for on year end taxes.

Tips & Warnings

• Have very clear agreements to avoid disagreements and also have a mediation agreement in case any conflicts occur

Resources

• International Reciprocal Exchange

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on 3/9/2009 The National Association of Trade Exchanges is overkill for most normal users. There are better service bartering websites like http://www.skillsbarter.com

[MIghtyDreamer]

on 2/14/2009 I have bartered but did not know of bartering services in this amount of detail. Of course too, now this has become a true business unlike many years ago when someone may have tried to use bartering tactics. All the signs of the times it seems. Great article, suggestion and informative data. Thanks. I'm going to make this a favorite