WHAT ARE THE BENEFITS OF BARTER?
Would you rather pay for a $200 advertisement with cash, or instead use your goods and services to pay? Based upon a profit margin of 50%, using your goods and services to pay through Barter Network would only cost you $100 for the $200 advertisement. You just paid half price. You increased your purchasing power by 100%.
Why use Barter Network instead of simply trading one-on-one?
Barter Network allows you to leverage your trading power over a broad array of goods and services. For a one-on-one trade to take place, both buyer and seller must need exactly what the other offers. For example, maybe the Radio Station you want to trade with doesn't need or want your pizzas. So how can you exchange your pizzas for radio commercials to grow your business?
One-to-one trading also limits the amount you can trade with each other, based upon the quantities of goods or services you can purchase directly. Radio air time is valued at about 20 pizzas per minute. So even if the radio station was willing to take your pizzas, how many commercials can they trade?
Through BNI, you can sell hundreds of pizzas throughout our network. We convert the value of those pizzas into BNI Trade Dollars that you can then spend on radio advertising to grow your business. Or you can buy printing, supplies or a much-needed vacation for you and your family.
When you become a member of BNI, you are assigned a personal broker. This broker is responsible for helping you sell your goods and services across the network while also helping you source and purchase the goods and services you want and need. Plus your broker will manage these trades to ensure fair value received and given. We manage the whole process so you have time to focus on your business.
How will trading through Barter Network help grow my business?
Sales is often the hardest part of any businesses success. What if you could tap into a source for new customers? Even better, these new customers are already SOLD when they walk through your door, or call you on the phone. Barter Network is a source of new and incremental business. It's like having a commission-only salesperson.
In turn, as shown in the advertising example in the first question, there are a great many goods and services available in our network to help you grow your cash business. Need advertising, a web site, flyers, postcards, signs? Pay for them using your own goods and services (thereby discounted by your cost-of-goods) and watch your business grow.
Oh, and each of those new Barter Network customers are potential referral sources. Serve them well and they'll tell their business acquaintances, neighbors and friends; none of whom may be in the network and therefore will be cash referrals for your business.
Are there tax advantages to bartering?
Tax-wise, barter income and cash income are treated exactly the same. There are no tax advantages - nor tax disadvantages - when bartering. Barter Network will provide your business with a 1099B form at the end of the year for all the sales you generated through our network. Similar to the cash world, any business expenses incurred through barter should be tax deductible. Consult your accountant or tax advisor for details on your particular tax situation.
How shall I price my goods and services?
Pricing to barter customers should be the same as to cash customers using retail pricing as a guideline. A barter dollar equals a cash dollar. When you go to spend your trade dollars, you will want the same fair treatment. Trade dollars are just another form of payment.
What is the cost to become a member of Barter Network?
There is a one-time, nominal, membership fee which is used to set-up your account. Transaction and monthly fees cover accounting and marketing costs, as well as promoting your business. Your fees also enable you to receive newsletters, email and web specials. Speak to our sales department for more details. Or visit our Join page for membership details.