Barter is a way to exchange goods and or services directly, without any form of currency. Humans have been bartering for centuries, but now the Internet has opened up a whole new world of bartering possibilities. Whether you're looking to get some value out of an unused item, or want to save money by exchanging services, keep reading this article to understand how to find bartering opportunities and strike a swap deal that benefits all parties.
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Method 1 of 3: Selecting Goods and Services to Offer
Step 1. Think about the professional services you have done
The most obvious barter option is of course the services you have provided as a form of your work, either now or in the past. Any service, from dental checkups to carpentry, can be offered. Let potential bartering partners know about your professional experience in that field, so that they find your offer more attractive.
If you run a business, consider offering your standard services in exchange for brochure design services, tax accounting, or other services your company requires. This is an excellent way to attract customers who did not initially intend to hire services or buy goods from your company, without having to give them away for free
Step 2. Identify skills related to your hobby
If you like to cook or bake, you can offer to make dishes or cakes with home recipes. Arts and crafts items can also be something a lot of people are looking for, especially if you offer to have them custom made to your bartering partner's order. If you can't find an item or service worth offering as a hobby, ask one of your best friends for advice, as you may not realize that fiddling with cars or writing poetry in your spare time are valuable skills.
Think about your hobbies related to home maintenance, such as gardening or repairing household items
Step 3. Find your hidden skills
Many people hone skills through their work, hobbies or daily activities, without them knowing it. Write down a list of things you do on a regular basis. Take a look at each of the things you write down on this list, and find out what skills or special skills or knowledge you have, that enable you to do all of these things quickly and precisely.
- Many people have difficulty in math, for example when calculating taxes or recording business or household finances. Fast and accurate multiplication and division calculations may be what you can offer in the form of services like this.
- Other skills or expertise include cleaning the house, handling computer problems, translating (if you speak more than one language), or writing scripts.
Step 4. Offer other services that other people may not be able to or don't want to perform on their own
Many barter relationships take place in the form of pet care, gardening, grocery shopping, house cleaning and other services that some people can perform more easily than others. If you enjoy these simple activities, or if you can do them quickly, you should consider offering them in the form of bartering. These tasks can be a pain for people who do not have a means of transportation or have health problems that hinder their activities, as well as those who have very busy schedules.
If you have specific expertise or experience in one of these areas, mention it when you are discussing bartering agreements. Managing a budget or taking care of a special pet may seem trivial to you, but it may be exactly what someone is looking for
Step 5. Find the items you want to get rid of
Search your place of residence with thoughts of bartering, as there may be small items that are difficult to sell but easy to exchange for other small goods/services. Unused books and clothes, a toaster or other kitchen utensil, or even wine or food that is still sealed can be exchanged for other items.
- If you frequently barter for small items, try finding free or cheap items from a thrift dealer, which you can trade later.
- If you grow crops or raise livestock for food purposes (vegetables, eggs, meat), you may be able to trade for the produce.
Step 6. Lend your house, car or other valuables
If you can swap places while you're on vacation, you can save a lot of money by not having to pay hotel fees. Or, you can rent out your unused room or sofa to make a tourist bed for a few days in barter, without charging any rent. Many people may also be interested in borrowing a car or need transportation services to their destination. If you also have expensive tools like chainsaws or lawn mowers, you can lend them to your friends in exchange.
This type of bartering is a bit risky, because you're giving someone else permission to use a valuable item you own, while you need it back later. Depending on your level of courage to take this risk, you may only want to do it with your own friends or people they personally know and recommend
Method 2 of 3: Finding Barter Opportunities
Step 1. Look for a website in the online bartering field
The websites that administer these barter deals may contain a wide variety of goods and services, such as Craigslist or U-Exchange, as well as specific goods or services, such as SwapStyle (for bartering clothes) or BookMooch (for bartering books). Be sure to read the instructions carefully and study all the terms of membership, including the fees, and the fees charged for exchanging items, before you register to join the website.
- Some websites require a certain fee to ship items, which can be quite expensive if you are shipping large or heavy items. It is always the best option to find out about these shipping costs before you agree to barter.
- On some websites, members can connect with each other to make barter deals. On other websites, you must collect “points” or some other form of artificial currency in order to offer goods or services, then these points you can use to request goods or services from others.
Step 2. Join the time bank community, if you are only interested in bartering services
If you are more interested in exchanging services than exchanging goods, join a time bank community in a nearby location, or create a community like this by visiting this link. Anyone who is interested in joining the banking community today can “hire” the services of others to perform any service. When providing services, a person does not receive payment in the form of money, but saves the number of hours of the duration of work in the time savings data bank. Then, he can “rent” the services of other members for the duration of his time savings balance. In the standard time banking system, one hour in time savings is equal to one hour of work, although the dollar value per hour worked for each service may be different. This system makes the bargaining process much simpler.
For example, Frederico provided Brad with six hours of math tutoring, and thus now has six hours saved in the time bank. Frederico then used the four hours of his savings to hire the services of another member, Alicia, in the form of four hours of carpentry work. Frederico's current balance in the bank is two hours, which he can use to hire any services from other members
Step 3. Find bartering opportunities in your neighborhood
Search online for bartering communities in your city or area and you may find community forums where you can barter with people who are fairly close to your location. Also find out about this from the local community notice boards, where there are lots of flyers and information on various offers. One of the greatest advantages of local offerings is the possibility to exchange services that require face-to-face meetings, or to exchange goods that are too heavy or too risky to ship in packages.
Major websites like Craigslist will often allow you to search for deals closest to your location
Step 4. Advertise around your neighborhood
Whether you're looking for a specific bartering offer or running a specific business, placing local ads is an excellent way to get people to pay attention to your bartering offer. Distribute flyers in your neighborhood, talk to neighbors, or organize a gift exchange at family celebrations. Finding a barter partner this way, whether for a one-off offer or for the long term, can be a great way to save money on your routine needs, such as yard maintenance, as well as help create better relationships with your neighbors.
A ward meeting hall, local newspaper, or church can help spread your information free or at a very low cost
Step 5. Merge your company with a barter network
Companies can use other ways to barter with customers, while also saving costs by bartering with other companies. Consider joining a bartering network for these benefits. Similar to individual barter communities, most bartering networks for companies operate using an artificial currency whose balance is added to your company account every time your company provides services to other members. You can use this artificial currency balance to hire other services as well, although you may need to pay a certain fee to be able to get setup services from that network in order to get the services your company needs.
Always keep an eye on comparisons from the Better Business Bureau and other reviewer websites, to see if the services offered offer the right value or not
Step 6. Ask questions
It doesn't hurt to ask questions about possible more profitable barter deals, as long as you're prepared to accept a "no" answer. Most people and companies aren't used to bartering yet, but are willing to do it when the opportunity presents itself. Mention the goods or services you offer, ask about the needs of the bartering partner, then stop the discussion if he is not interested.
Method 3 of 3: Making a Barter Agreement
Step 1. Offer a barter deal
If you don't know this person through the bartering community, politely inform them of a possible bartering agreement, before you go into details. Use words like, “Are you interested in bartering?” or “I am more interested in exchanging services than receiving cash payments, if you need home improvement services.” Don't immediately offer a certain number of items or haggle over the stated price, but first make sure that this person is open to the idea of bartering.
Step 2. Investigate the potential partner's background before making a deal
If you get a reference about a potential bartering partner from a friend, ask the friend if the potential barter partner can be trusted. Ask the potential bartering partner to show examples of his work if possible, and ask him for experience or certifications if this is relevant. The more valuable the deal, the more important it is to ensure that you will get a quality “payment”.
- If you're bartering for an item that's located close enough, come and have a look at the item. If you're bartering remotely, ask for photos of the item from all sides.
- If you suspect that the barter partner will not fulfill his commitments, ask a friend or other neutral third party to be a witness when the deal is made. Or, it's better that you don't trade with people you don't trust.
Step 3. Each party must describe its services or goods in detail
It is best to confirm everything about this offer before negotiating too far. Does “clearing the yard” mean weeding the garden, or a full-fledged landscaping job that includes planting trees? Does the item you offer function normally, or are there things that the interested person needs to know beforehand? It is very difficult to negotiate an agreement if both parties have different understandings of what is being offered. Therefore, clarify the offer as early as possible.
When offering an item, provide a photo of it, or if this is a new work of art, provide photos of previous similar works. These photos don't need to be professionally taken, but try to keep the results from being blurry and use a plain color background, so things are clearly visible
Step 4. Determine the value of each service
In informal bartering between friends, you may come to a quick decision while chatting, that a session of French lessons is worth the same as a homemade cake. But when bartering with people you don't know before, or when it comes to a more valuable offer, you need to discuss the value of each service more formally. Each party must explain what price is usually charged for the goods or services offered. Be open to price bargaining if the outcome of the deal will still save you money. Once you've agreed, for example that a treadmill is worth $6 and an hour's gardening job is worth $20, finding a deal that's fair to both parties will become easier.
Because you're not using a fixed currency, the value of each side's share rarely ever really equals. In the example above, the gardener may be able to agree to provide his services for 3 hours (worth Rp.690,000) and receive a treadmill (worth Rp.650,000) as payment, without having to calculate the difference in the barter agreement
Step 5. Provide certain extras if you can't agree to the deal yet
If you can't agree on a service or good that's exchangeable fairly for all parties involved, offer a plus. This can be cash, other items you want to get rid of too, or other services.
Step 6. Engage third parties if needed
This strategy is more likely to emerge among those who have experience in bartering, or within the barter community. Always keep an eye out for people who are in need of a particular service, and see if there is a possibility of three-party bartering. For example, Alfred provides dog walking services for Bob, Bob provides roof repair services for Carol, and Carol provides lawn mowing services for Alfred.
Step 7. See if you have taken care of all the following details
For transactions of high value, or involving new people, it is recommended that you make a formal written agreement. For barter deals of lesser value, a verbal or email agreement will suffice. Whatever the form, make sure that the agreement includes these things before you agree to it:
- Who is responsible for providing equipment, materials, or raw materials? If anything needs to be purchased, who should pay for the purchase, and who has the right to own what was purchased once the work is done?
- When is the deadline for completion of work or delivery of goods? If this is a long-term or routine job, agree on a schedule to evaluate the results and determine the satisfaction of each party.
- How much follow-up services are needed? For services that require follow-up services for an indefinite period of time, such as website management, you should agree on a maximum number of hours. If what is needed turns out to be more than that, a new agreement needs to be made.
- If someone is going to do something at your house or in your garden, does he or she need to be called in advance to come, or can he come straight and work even if you are not at home?
Step 8. Learn how to communicate politely and in a timely manner
If you're communicating via text message on your phone or email, try to answer it as soon as possible. If you need time before making a decision or providing the goods or services that have been agreed upon, provide an estimate of the time you need it. Make sure your bartering partner understands that you are waiting for an answer, by writing questions that require a “yes” or “no” answer at the end of your message. Then, follow up by asking the partner's decision if you haven't received a response from him for a few days.
If you decide to reject the agreement, notify the other party as soon as possible. Don't assume that he will understand if you stop communicating with him
Step 9. Record your barter value in the tax report
In the United States and many other countries, companies are required to report all receipts earned by barter, based on the estimated value of the goods or services received. In fact, each person is also required to report the profit he receives (if he does get the "profit value" from a barter agreement), which is also based on the estimated value of the goods or services exchanged.
- If you are unsure of the approximate value of the goods or services exchanged, try finding similar goods or services for sale online, for example on eBay or Craigslist.
- Companies in the United States are required to report receipts on form 1040, schedule C or 1040, schedule C-EZ. If you have submitted your tax return and wish to correct the value of the barter receipt, please visit form 1040X.
Step 10. Understand that friends and family may want to barter informally
Remember, most people actually "have" bartered with people they know, in the form of informal exchanges or gift exchanges. Your friends and family may reject your offer to formally barter, as this seems too calculated, or they may agree without understanding that you want them to do their part as a serious responsibility. In situations like these, it's probably best to stick with low-value, informal bartering, in addition to lowering your expectations for timely or quality rewards.
Tips
One of the places to find bartering opportunities is the crop market. Some farmers will gladly be willing to exchange excess crop or livestock yields for certain other goods or services
Warning
- In many countries, you are required by law to pay taxes on any gains you make through barter, based on the monetary value of the goods or services exchanged.
- Beware of scammers. There are people who won't keep their commitments, and you need to be aware of these risks before bartering! If the barter involves goods or services of high value and you think the potential bartering partner is acting suspiciously, it's best if you cancel the deal.
