|
|
|
|
|
|
|
Alliances
& Partnerships
|
BarterItOnline.com
swaps equity for media access By Brian Cook, dbusiness.com WESTON, Mass., Aug. 25 (dbusiness.com) -- Following its own approach to encouraging barter deals online, BarterItOnline.com Inc. has traded stock for services with a media advertising organization. "This is what I want companies who barter online to think about," said Richard Cravatts, chief executive officer of BarterItOnline. "Rather than spending capital on services, start-ups should consider trading some shares for services early on." Cravatts said the deal he has struck gives Publications Management Co., a regional publishing firm also based in Weston, some 5 to 10 percent of his company's stock. Cravatts declined to be more specific on how much equity would trade hands. In exchange for a stake in BarterItOnline, the media company will help the site access print media space in its various properties, as well as commit additional broadcast and print advertising from other sources. BarterItOnline can use the dedicated media either to promote its own brand or to make it available to its member businesses, Cravatts said. "But I think we'll use it ourselves because it will help us brand the company." "Right now, some 99 percent of barter activity is conducted offline," long-time barter industry watcher Bob Meyer, who edits Barter News, told dbusiness.com. "But this barter-for-equity idea seems like a good idea. The only question I would have is how companies who do it determine the long term viability of the company that gives them equity." Meyer, who works out of Mission Viejo, Calif., said that some 400,000 businesses, most of them small companies, barter goods and services. "If the service being offered is something like media, or travel services. the Internet works fine. But small companies generally look for other services such as accounting and legal help within a 15 to 20-mile radius of where they operate." Prospecting
for partnerships BarterItOnline also signed a deal earlier this month with Dallas-based Clipscom Inc., an Internet video-on-demand company, whereby BarterItOnline will offer Clipscom's streaming video services to its customers. "This allows companies who want to sell items to be able to show video of the item they are selling. We get a cut of the fee that Clipscom takes for running the streaming media," said Cravatts. He added that while there are plenty of companies offering barter services, only a few use e-dollars as a form of currency. "Companies need to show where their money goes. So we use e-dollars so that they can record transactions, even if it's a swap of services. Using e-dollars, they can at least put a value on it." Not incidentally, Cravatts said, his method is also a better revenue model. "Sites where individuals swap items such as videos and compact discs depend on volume to make money, whereas, our model can earn money in larger deals between companies where the dollar value is greater." Cravatts added that there has been a profusion of barter sites in recent times. Direct competitors include BigVine.com Inc, Ubarter.com Inc. and Barter Trust Inc. "Bartering has been around since ancient days and according to our research it is a $16 billion business, and that's without the Internet." While seeking partnerships to build his company, which only launched a year ago, Cravatts is also seeking capital. "I have gathered together a team to launch the company as soon as we can finalize further financing." He would not specify just how much capital he is looking for. Brian Cook covers Boston for dbusiness.com. http://www.dbusiness.com/Story/0,1118,BOS_318528,00.html
|
