The Ancient Art of Bartering Moves Into the 21st Century

When times are tough, sometimes the best ideas are the old ones. Enter the barter system, which harkens back to the days when cash wasn’t king.

Defined as the exchange of goods or services for other goods or services without using money, the barter system is making a comeback in today’s budget-strapped economy.

Worth a whopping $12 billion in annual transactions, the barter approach makes it possible for you to get what you want without paying cash for it. As a result, it’s very attractive to independents, small businesses and start-ups.

When courting a barter deal, consider the cost of the exchange in terms of time and money: Is the exchange of equal value? Both parties should also treat the barter like a legal transaction with contracts and terms. And frequent barterers should seek an accountant’s advice on tax considerations.

Some may feel uncomfortable trading something of value for something that isn’t cash; however, many barterers are already using a currency of sorts. Bartering is being conducted on a high level through trade currency a value recognized by two international barter and trade networks: International Monetary Systems and Tradebank. Both organizations have adopted a system of trade dollars that can be spent by members with anyone else in the system.

Trade dollars are also gaining recognition as a type of digital currency that could help the global economy move beyond our current monetary system, which, as many countries now know, is not working. Seems our ancestors had the right idea after all.

Randy Bett www.BetterGroupRealEstate.ca