Bartering is usually defined as a process through which we can obtain goods and services through a direct exchange without the involvement of currency. In times of currency devaluation or the instability of the economy, bartering is one of the great ways to ensure the regular flow of essential services and items into our respective households without using the currency.
In the ancient period, most of the time, the bartering used to take place face–to–face between both the parties, but in the recent period, the internet has provided its users with a medium through which now they can easily barter between them either in the form of a person – to – person exchange or by the transactions involving a third – party.
This article will briefly discuss the online barter system and how you can make money through the various online bartering exchange businesses.
How do the bartering exchange businesses take place? Is it taxable?
In general terms, the bartering system is defined as a process that typically involves the exchange of various goods and services between two individuals or business groups, respectively.
One of the most critical factors you must remember is that while bartering with the various business groups, the IRS typically considers the barter system a taxable activity. Therefore, whenever you are getting involved in a barter transaction, always keep in mind to keep a record of the transactions, including your expenses mainly related to these transaction processes and your income from these transactions.
Is the barter economy big?
According to the international reciprocal trade association, i.e., IRTA, it is tough to tell how big the barter economy is because most of the transactions between the business groups through bartering are not recorded. However, it has been estimated that the barter economy has a 12 to 14 billion dollar range. About half of these amounts are typically generated by the traditional retailing of barter exchange companies and corporate bartering systems.
What tips must you follow to make money from the bartering system for your online businesses?
Always prefer the best bartering sites for your business
with the best bartering sites, you can generate higher revenue for your online businesses. Some bartering sites are best known for helping business groups facilitate their bartering exchange.
The craigslist website
The craigslist website is known for putting its users in touch with the various potential bartering partners for their businesses. The website provides a feature where the tangible goods are typically listed at the required monetary price or with the trading option, which indicates that the respective seller is willing to trade their goods and services for the individual item.
The international reciprocal trade association (IRTA)
It is considered a non–profiting website that generally ensures fair bartering practices between the parties and promotes the traditional bartering of an online system. Also, it helps its users in promoting their value for bartering among the communities. The IRTA members are usually considered trustworthy and ethical in their profession.
The U – Exchange website
The U – exchange website is primarily known for helping small business groups or startup organisations with online bartering systems. They provide their users with free posts and trades, but they also help connect the different business groups interested in trading their respective goods and services.
Get yourself involved in an exchange networking system
it is considered that there are more than 400 different bartering networks with nearly 4,00,000 participants throughout the globe. These bartering networks help you facilitate the transactions by equating each of your services and products to a given amount of the respective trade dollar, ensuring both parties that, in return, they would be getting something of equal value.
Make a contract with the opposite party
while bartering between the business groups online, it is always essential to make a contract between the two parties. While making the contract, stipulate that both the required parties are giving and receiving within a required time frame of the transaction. For good measure, you can always hire a lawyer even.
Consider negotiation
whether you are signing up for a cloud service or a vendor, you will always be provided with the opportunity to negotiate. As a result, you can always ask your services providers for whatever you are comfortable with. But in the case of a bartering system, it is essential to consider that the typical ideas of worth and value are very different.
While getting involved in the bartering system, you are simply not assigning a fair market price for your goods and services and accepting the retail pricing amount; instead, you are investing your skills, effort, and time along with the rarity of the provided services or products. Therefore, during this time, the bartering service becomes more than a paying sticker or asking for a bulk discount and thus includes a fair share of benefits and negotiations between both the respective parties.
Don’t forget about your potential customers
one of the most common forms of online bartering usually occurs between various business groups. Still, the bartering can sometimes occur between the business and its customers. Therefore, your customers can also act as an excellent source for your bartering.
Suppose any of your customers have a skill set or great networks or are a provider of raw materials which you can quickly capitalize on for your business. In that case, you can involve them in the bartering system by providing them with free products and services in exchange for their respective services.
Conclusion
The bartering system is one of the oldest forms of service and good exchange without involving your precious funds. In recent periods, the bartering system has been known for adding significant value to several huge organisations worldwide. Through this system, you can save your required money, but it will also help you develop essential and great cross-industry customer or business relationships resulting in a steady growth of your required business.