In the beginning, there was barter, the cashless trading of goods and services.
A farmer traded corn with a neighbor, who, in turn, performed a service like thatching the farmer’s roof.
Jump ahead in time and barter gave way to less cumbersome coins and paper money.
Take another warp trip forward to the dawning of the Internet and money quickly evolved toward an electronic, virtual model that we now refer to as “Web currency.”
But is there really much of a different between accruing Web “reward points” or “flooz” and virtual bartering?
Once technology integrated itself into society, it didn’t take long for old business bartering to evolve anew, into online bartering.
Barter has really taken to the Internet in a big way. The Department of Com-merce says that barter in its various forms accounts for about thirty percent of the world’s total business.
According to the International Reciprocal Trade Association (www.irta.com), American businesses bartered about $16 billion worth of goods and services last year.
Florence Vincent founded the barter company Capitol Trade Exchange (ITEX) and www.NorthWestBar-ter.com six years ago in Rainier, Washington.
She gave us 10 minutes for 10 questions about bartering on the Web.
Q: What is bartering?
A: Bartering is really like having another bank account. You get paid for your products or services and you put that revenue into your trade account, just like you would put it into a cash account. You earn revenue and build your bottom line.
Q: It’s an alternative payment method, right?
A: It’s a more useful currency than the one-on-one bartering that people have done for years because you’re not tied to bartering with someone who maybe moves away or the barter doesn’t work.
Q: How large is the marketplace?
A: There are about 400 trade exchanges in America and about 400,000 small or medium-sized businesses that trade. Then you have corporate trading where big corporations will trade huge excess stock.
Then you have international trade where a country will trade with a big corporation in another country. They don’t actually want their money, which may not be highly thought of. They would rather get products: silver, gold, vodka, whatever.
Q: How is Capitol Trade Exchange embracing the Inter-net?
A: There are barter companies that do just e-commerce for individual online purchases.
We find businesses use our system for both the networking and online services.
We see ourselves as a hub of a great wheel that focuses on our clients needs, who in turn use the Internet for our online national Trade Flash newsletter and our online broker network.
They also can go to their own customized online trade account to see how much they have to spend. They can access online our complete vacation directory.
Q: Explain how bartering functions?
A: For example, Bagel Brothers in Olympia are bartering members and have several stores.
People will go there and buy bagels for themselves or catering and pay in trade dollars and cash sales tax and tip.
Bagel Brothers will put those trade dollars in their barter account.
They in turn spend those trade dollars on banners, signs, janitorial, attorneys, doctors, vacations for the family, whatever they want.
Q: What are some of the perks of using bartering for an online Web site business?
A: It will bring new clients to your Web site. You can get your Web site hosted with barter dollars. You can advertise across the country in radio or print media. You can also get co-op advertising if they put a little ITEX logo in their advertising, then we’ll refund them half their money.
Q: What are some of the most unusual items that have come up for exchange on your system?
A: I’ve seen lamas, horses, cows, whole houses, real estate, boats, cars, strange pieces of electronic equipment, psychic readings. You name it and it will probably come up at some time or another.
This one guy asked for a yellow Roadster, complete with gold knobs and such. That exact car came up as a barter years later and we remembered it and called the guy, saying “We got it for you!” The guy didn’t move on it. Well, of course we never got another one!
Q: Does the current economic slowdown effect bartering?
A: Bartering will work in any economy. If the economy is strong, it will assist growth.
If the economy is in a downturn, it will fill in those quiet times, bring much needed extra revenue and keep staff active, thereby keeping morale high.
Q: What is in the future for business bartering?
A: I see more businesses using bartering as a business tool to increase their bottom line. It encourages staff loyalty. It gives them an opportunity to take a well-earned break. They’re able to take excess stock and trade it for something they not have been able to afford otherwise.
Q: How would a business owner in the Pierce County area get involved in your barter network?
A: Go online at northwestbarter.com or give us a call.
Capitol Trade Exchange’s Web site is at www.NorthWestBarter.com. A full audio interview with founder Florence Vincent can be heard at www.webtalkguys.com.