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Bartering Makes A Comeback
reprinted from the Boston Business Journal

No one knows better than the small business person that these times demand strategic thinking. Business owners are constantly facing increased competition and the necessity of finding new markets for their products.  
 
Enter the barter exchanges, increasing making themselves known when business must scramble for higher profits and maximizing sales opportunities. What the exchanges enable business owners to do is turn over products and services to a second group of consumers--other business owners--willing to buy and sell without using cash.

The beauty of these trading systems, of course, is that traders can find new buyers of their products and services from the targeted universe of participants trading within a particular exchange. Instead of having to trade one-on-one, a barter exchange enables members to "shop" anywhere in the system, using trade currency, with a large number of willing buyers and sellers. A member, for instance, can sell office furniture to an advertising agency but use his credits to hire a law firm or pay his accountant.  

Barter brokers, who monitor and record all transactions and introduce traders to each other, receive commissions for the efforts--not unlike brokers in stocks and other securities. All trades are recorded, and monthly statements (similar to charge card invoices) are provided to members indicating their purchases, sales, and current balance.

Commissions, which for traditional land-based barter exchanges range from 8 percent to 15 percent of purchases, are due after transactions occur. Sometimes, however, exchanges charge 5 percent on the sales side and 5 percent on purchases to help encourage equal buying and selling activity . . .

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