Barter has proven to be a prudent business tool to help companies
in a wide range of industries. Below are some (FAQ) Frequently Asked
Questions about Barter of America and how barter can be employed
in your business.
on Selecting a Barter Trade Exchange.
Why are prices on barter
often higher than those for cash?
In most cases, they're actually not. The trade price almost always
costs you less--even if the cash price appears lower. Let us explain...The
actual cost to you of an item is actually a fraction of the amount
charged since it may cost you only 55 cents on the dollar to earn
a trade dollar.
There's a simple formula to find the actual cash cost to you of
something purchased with trade dollars: Your actual cash cost is:
(Costs for you to earn a trade dollar) X (the cost of the goods
you wish to purchase) + (12%).Let me give an example. You normally
sell goods on the network with a 45% cost of goods (i.e. each trade
dollar earned costs you 45 cents). Now lets say you saw two identical
items one available through a barter member for $1,000 trade and
other available on sale at $799 cash. Buying through barter costs
you 45% X $1,000 + $120 = $570 cash -- a savings of $229 over buying
the item with cash!
If you are providing a service to your trade customers, then often
much of the trade costs will be your time, thus making barter even
more attractive. And remember, when you pay for an item in trade
dollars it represents income that you would not have earned if you
were not a member of the exchange -- trading brings you new customers.
Rests assured that BoA will not permit firms to remain in the Exchange
which provide poor service, or overpriced or poor quality goods,
or which otherwise do not honor their commitments or obligations.
How does barter work?
Barter is simply the exchange of goods and services without the
use of money. People have been doing it informally for thousands
of years...but today, this type of transaction has turned into a
sophisticated business practice.
When you join Barter of America.com, Inc., you have the opportunity
to trade your services or products with those of more than 1,500
BoA clients. Let's say you own a landscaping business and you need
a lawyer to help you incorporate. You'll look in the BoA directory
or call your BoA trade broker to find a lawyer in your area. You'll
meet directly with the lawyer to discuss your needs, just as you
would if this were a cash transaction.
So, now you're ready to hire the lawyer. What happens next? You
need a lawyer...but the lawyer probably doesn't need landscaping.
That's where BoA comes in. You don't trade directly with the lawyer;
instead you pay for the transaction with trade dollars. You may
have earned your trade dollars by upgrading the landscaping of a
local restaurant...or by landscaping the home of a local business
Essentially, BoA acts as a clearinghouse, keeping track of transactions
and helping you link up with businesses that have something you
want, or that need your services. When you make a sale, you call
for an authorization and complete a sales invoice. You submit this
to BoA, along with a small cash service fee, and your trade account
will be immediately credited for the amount of the sale. Put barter
to work for your company! It's a simple, effective way to expand
your business horizons. (TOP)
|What can I spend my trade
BoA members provide a broad range of products and services. Exactly
what's being traded can vary throughout the year as many members barter
only during their slow seasons. The TradingFloor will give you an
overview of businesses, which are actively trading. Click here for
a list of trade categories. (TOP)
|What if my product or service
is too popular?
I've heard that businesses like mine can be flooded with trades.
You decide when and how to barter. You can trade just on certain days
or products. You can limit trading to a set amount per month, or you
can choose to trade only during your slow seasons. With BoA, you're
in charge! (BoA wants business owners to know they have the chance
to suspend trading if they have acquired $5,000 in trade credits.
BoA set a limit because the cashless society does not want owners
feel bogged down.) (TOP)
|Do I have to trade all the
The benefits of trading are realized when selling and purchasing are
conducted on a continuous basis. But, there may be certain periods,
when you may wish to hold off with accepting any new business. This
is accomplished by placing your account in a hold status. You can
resume trading at any time thereafter. (TOP)
If there are other businesses
that I would like to see enter the system, what should I do?
Just contact the BoA office with the names and telephone numbers
of each referral. We ask that you first give them a brief overview
of BoA, and mention that a representative from the company will
be contacting them shortly. Just like the cash economy, supply and
demand determines how active an account will be.
BoA is continuously marketing your company's product or service,
with the idea of generating as much business as you care to receive.
Once they become clients, you receive a minimum of $50 cash credit
and T$200 dlls. to your account. (TOP)
|Can I expect to receive
trade business immediately upon becoming a member?
Not unlike the cash economy, the barter marketplace is a product of
supply and demand within the group of participating companies. The
more your specialty satisfies individual company needs, the greater
will be the traffic flow. (TOP)
How do we market your business?
Our trade brokers phone member businesses that regularly purchase
your products or services and facilitate an introduction. Our brokers
become part of your sales force.
- We place your ads in our monthly newsletters free of
charge. Newsletters are direct mailed to thousands of businesses.
- We send daily emails where we sell your products and promote
- We place your specials on our weekly Hot Fax. This is a great
way to move inventory quickly or fill a vacant seat at an event.
- We provide a free listing in our membership directory.
- We produce trade shows for member businesses where they can
display what their company has to offer.
- We host informal gatherings where members can Network.
- We distribute your flyers and brochures through our direct mail
program to member businesses.
- We provide regional and national exposure to businesses looking
to expand their horizons. We do this through the "Banc"
and "Universal Currency" which is nationwide.
We connect your web page to our active member shopping mall on
the Internet. Or, we create a Website for you. (TOP)
The reason cited by Fortune 500 clients in 99 are: Leverage
value, Conserve cash , Solve problems, Control distribution ,Reduce
risk . (TOP)
What can be traded?
Undervalued Product Inventories
Excess from forecasting errors, packaging changes, technology changes,
etc. - everything from premium and incentive items to refurbished
Excess Production Capacity
Produce products for trade to improve plant efficiency, absorb overhead
and utilize excess components.
Steel, resins, oil, paper, chemicals, etc.
Real Estate, equipment, accounts receivable, etc. (TOP)
How are inventories remarketed?
Barter of America will remarket your goods to complement, not compete
with your current distribution -- domestically or internationally.
Yes, Internationally, globally
"There's no industry that
can be impacted any greater than the barter industry by the opportunities
on the Internet. It doesn't matter if you're in Indonesia or Afghanistan.
The Internet makes the whole world a village. "Barter isn't
just for your neighborhood. It's now international." The barter
system began in the U.S. approximately 30 years ago. Now its exists
in 52 countries around the world.
There are many advantages to international bartering. Global locations
with opposing weather seasons are one such advantage. BoA successfully
traded $170,000 in off-season summer merchandise to a business in
Argentina, during the Argentinean summer season.
"We had an opportunity to sell these
items for regular price. If we sold them locally, we'd have to price
them at a discount due to the end of the summer season,"
We continually commit to your defined remarketing restrictions.
BoAs KEY AREAS OF REMARKETING
- Nontraditional Retail
- Mass Merchandisers
- Drug Chains
- Dollar Stores
- Warehouse Clubs
- Home Center Chains
- Specialty Retailers & Distributors
- Private Label
- Premium & Incentive Users
- TV Shopping
- Duty Free (TOP)
|What if I need to make
a purchase before Ive earned trade dollars in the system?
Just like a bank, we encourage businesses to apply for a barter line
of credit. If you qualify, you can begin purchasing immediately. "Under
the barter system, a business can buy the things it needs today and
pay for them with a future new sale - instead of cash," "
The result is an improved cash flow and new cash profits." (TOP)
|How should I price my products
Prices quoted to barter clients are the same as prices quoted to cash
paying customers. Business owners are educated shoppers. Barter is
simply a mode of payment just like a credit card or cash. (TOP)
|I have heard that barter
is only good for the acquisition of services and not for goods. Is
Barter is obviously best suited to high-margin situations in the marketplace.
Margins are highest where businesses trade only their time or where
there is an excess capacity such as undersold radio time, hotel space
or idle equipment. However, barter can also be used to acquire goods
at regular prices if margins are adequate. Where margins are tight,
goods can be readily acquired by trading them at list price or with
a cash component. (TOP)
|Can I use my trade credits
to negotiate purchases with businesses that are not members of the
Absolutely! However, take care not to promise anything without first
checking on its availability with the Exchange. A member purchasing
a $10,000 car from a non-member dealer should ask the non-member if
they will accept goods or services for the down payment. If the car
dealer accepts, and if the Exchange has what the dealer wants, the
trade can be made. Members are always encouraged to negotiate at least
a small trade component for purchases with non-member businesses.
The Exchange is always willing to assist you in developing any special
trade transactions. (TOP)
|Can my trade credit be
spent with other trade organizations?
Absolutely! You may spend your trade credit with any trading member
that belongs to our national trade network. And vice versa. This way
you gain access to the goods and services of literally thousands of
businesses across the country. Arrangements must be made in advance
through our office. (TOP)
Why Not Trade Directly?
Many businesses are already bartering directly. But its not
always easy to arrange a direct trade. It depends largely on good
luck. And sometimes you get burned when you provide product and
get nothing in return.
Belonging to a trade exchange eliminates both problems. Barter
in an exchange is not direct - its simply buying and selling
for a different dollar - a trade dollar.
Of course we use a computerized system to keep track of trade dollars
earned and spent. When your business sells to another member your
account is credited with trade dollars, which are immediately available
to spend with any other member businesses. You dont have to
find a member who wants what youve got before you can make
And when proper procedures are followed, your trade dollars are
guaranteed - even when a member goes bankrupt. (TOP)
What is Barter of America.com
Barter of America.com is a Trade Exchange
business-to-business marketplace and community for global trade
focusing on helping buyers/sellers cut down time, money and effort
spent in trade process through its web-based information and e-business
platform. Barter of America is the New Monetary System of Digital
Money -- A Totally Cashless Society with its worlds
leading network of Merchants and corporate companies. Located in
major business centers in the United States, Canada, Europe, Australia,
New Zealand, and Mexico. Barter of America offers a global marketplace
for businesses to trade a wide variety of products and services.
Barter of America is transforming and popularizing business barter,
by making barter a practical business tool. Barter of America members
work with local trade brokers to facilitate trading, and gain access
to our global network of trading participants. (TOP)
What is Barter of America's
Barter of America is already advancing its strategy of building
a global barter exchange. Barter of America has develop a communications,
transaction and settlement infrastructure for use by major corporations
who currently participate in a $2 trillion p.a. non-monetary market,
which includes corporate barter, reciprocal trade, and asset swaps.
Our technology-driven trading system is designed to improve the
efficiency of what is currently a cumbersome, paper-driven commercial
market hampered by currency exchange issues and the challenge to
monetize assets which are taken in exchange. By bringing together
retail and corporate barter exchanges linked by the Internet, Barter
of America is expanding the trading opportunities available to clients
In the same way that established stock brokerages have integrated
the Internet into existing client services to expand their business
and revenue, Barter of America clients may conduct trades and manage
their accounts however they wish; through the personalized service
of a local broker or Barter of America's online system, that does
not include guidance. Both options offering a worldwide inventory
of choices to make trading more productive and profitable. (TOP)
|What is Barter of America's
relationship to local barter broker?
The local broker that are Barter of America associates will become
part of the organization in the future
Reward Yourself with
a Higher Level of Service Barter of America OnLineTrader Corporate
Barter Level II Services provides enhanced services and expanded resources
for Active Traders. Depending on trading activity you may qualify
for Platinum level benefits, for more information click
What exciting developments
are in store for Barter of America in the next 3 years?
In only a few short years, Barter of America will be facilitating
billions of dollars in trades for hundreds of thousands of diverse
clients worldwide. Our current "charge card" system works
just like a MasterCard or Visa. Simply, fill out a Voucher sales
slip, give the customer a copy, and send a copy to us. We credit
the sellers account with "trade dollars" and debit the
But the next step is
The project, which would be the first
major Barter of America-branded Barter Debit card introduced in
the United States, will enable customers to use their cards to shop
on the Internet, as well as make purchases in stores with a Balance
of their accts. stored on both the cards chip and/or a magnetic
stripe. Consumers will also be able to accumulate loyalty points/miles
from merchants both in stores and on the Web.
In other words
an international barter currency that will
even rival, in a couple of decades, today's banking industry! Although
BoAs role is to provide the accounting for the trading unit
through its system, the company intends to partner with institutions,
such as major banks, that may be willing to be market makers in
this innovative alternate currency. (TOP)
|Will Barter of America
list its and others entire inventory on this Web site?
Barter of America currently posts the same inventory information available
to its network trade brokers. And the rest of the traders that are
not BoA members. Please look through our site and see what we and
others have to offer. The reason so many come back for additional
transactions is that they are able to use the trade credits they received
as part of the trade and have successfully offset the cash cost of
required media, goods and services. Even if they do not use our Currency.
What is BoA Currency
Innovations and Currency Exchange?
By bringing together an expert team of leading monetary economists,
quantitative mathematicians, and currency specialists, Barter of
America intends to significantly advance the concept of Exchange
barter credits with a view to facilitating the creation of a far
more robust commercial "eCurrency" trading unit.
The use of a Currency Exchange Chart is critical in facilitating
the acceleration of transactions flowing through BoAs trading
system by removing the constraints of duality that currently exist
in the large corporate and reciprocal trade market. Currently, numerous
corporations are willing to receive barter credits-dollars from
barter agents, in exchange for assets they wish to dispose of, yet
there is typically no substantive underpinning to these units; they
often are illiquid, and there may be no market available to monetize
or value them. If you have X Barter Currency visit our site to exchange
it for Z Barter currency. (TOP)
|I'm interested in barter.
How are trades taxed?
There's no tax advantages or disadvantages to barter. Barter income
is the same as cash income for tax purposes. Trading should be considered
a marketing tool, not a tax tool. As with cash income, however, trade
purchases that are business related are also tax deductible. See Tax
Policy. In the United States, the IRS regards barter transactions
as they do any other retail sale. These transactions are summarized
for a client on a Form 1099, much like a stockbroker reports interest
and dividends paid on an account. Prevailing tax laws in each country
apply to international trades. And a W-8 IRS form is need it for foreign
Companies. For more information, consult your tax advisor. (TOP)
| What does it cost to get
There is a one-time membership investment to establish your business
account. Transaction and modest monthly fees cover accounting, marketing,
promotions and member services. (TOP)
How do I join the Barter
of America Network?
It's easy to join the Barter of America Network. Just complete the
simple OnLine application form, which will be sent to your closest
participating broker. The local broker Associate will contact you
to complete the application and help you get started.
Become a member of BARTER OF AMERICA, and we'll show you how you
can choose from thousands of products and services and take advantage
of a broader range of spending power! (TOP)