Barter—Part 4: How Does It Compare to Cash?
August 29, 2008 by Lillie
Table of contents for Barter
- Barter—Part 1: What Is It?
- Barter—Part 2: What Is the Benefit?
- Barter—Part 3: Who Does It?
- Barter—Part 4: How Does It Compare to Cash?
Question from a reader: Would you ever perform a service for “trade dollars” when you can get an equivalent amount of “real dollars”?
Answer: Of course, if there is a choice, cash is usually preferable. However, I have accepted trade dollars when I could have been paid in cash. For example, the writer who was originally referred to me by a trade exchange periodically has trade dollars to spend. I always accept trade at those times because he would not be my client if the trade exchange had not referred him to me. Any time I get business from the trade exchange, I accept trade dollars from that person/company for future business. Also there are times that I am trying to build my trade dollar balance for a specific purchase (such as when I needed extensive and expensive dental work) so I would choose trade dollars over cash dollars.
I first joined a trade exchange more than 20 years. I was quickly hooked on barter and have been happily trading ever since. Just like cash business, sometimes I want more trade business … and sometimes I have more than I handle. A milder version of the notorious feast or famine cycle of freelancing. But, like freelancing, I would never give up bartering.
This whole series resulted from an e-mail exchange with a reader who wanted to know more about barter. If you want to know more, ask your questions in comments so everyone can read the replies. Even if you don’t have questions, read the comments—there are excellent ideas there from readers.
What a great series, Lillie. I have done a bit of barter work. It’s fun. Nice to see someone touch on the subject in a series.
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When you engage into barter, don’t you get the feeling that the goods being exchanged don’t really have an exact measurement or gauge compared to cash which is definitive?
Interesting site, I have done some barter work over the years but only for friends /aquaintances and normally for straight exchange values. I’ll have to look into this deeper.
Thanks for a great site.
Pad
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You know, that is an attitude I understand. Even though it isn’t that natural really. When confronted with trade dollars as payment my initial reaction is, to be honest, no way! But thinking of the future dollars when he orders again … yes good thinking. Thank you. I think I will change my view!
Hi Lillie – thanks. I’ve really enjoyed this series. What sort of commission do the trade exchanges charge?
Lillie, I have learned more from you in this series than from all the past sources combined. Thank you again for sharing this information and introducing us to a service which provides such great mutual benefits!
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Nothing can comparable with cash.Your point of view may be different.
I’ve bartered before and agree, although cash is preferred, it can work out. One time, a client paid me with Best Buy gift cards.
Really liked your series. I think barter is everywhere e.g. you barter money for time (what we call outsourcing).
Will,
I’m glad you liked the series. Yes we barter/trade all the time,and I’m glad to share about another way to do it.
Really it is great series and it is very useful and thanks for sharing it.
Anand,
I’m glad you found the series helpful.
When confronted with trade dollars as payment my initial reaction is, to be honest, no way! But thinking of the future dollars when he orders again … yes good thinking. Thank you. I think I will change my view!
Nike (if you wrote YourName@Keywords, I could address you as a real person, and you would still get your keyword link),
You have to consider each situation on a case-by-case basis, but if I have the time (or in your case, if you have the inventory), barter can be very profitable.
I would prefer dealing with real money as they make my hands warm. Definitely, bartering is not for me.
flash (if you wrote YourName@Keywords, I could address you as a real person, and you would still get your keyword link),
You can certainly choose to do business however you choose. If you get all the business you want for cash, great! I enjoy a little extra now and then—and you won’t get cash from someone who wants to barter. You simply don’t get that business. I get plenty of business for cash but still can work in a little barter from time and time, which I usually use for fun things and luxuries.
Really liked your series. Thankyou.
Steve,
Glad you found the series helpful.
Hi Lillie,
It is great that you always give answer to reader.Ii is great series, i really enjoy it.
Thanks, Aditya.
Your post is great and too true. I would much rather recieve a payment in trade than no payment at all. And who knows the future business that barter transaction can bring your way, that you may not have gotten otherwise. Kudos on a great article.
Sylvia@barter´s last blog ..Barter Arbitrage updated Fri Jan 29 2010 9:56 am CST
Sylvia,
Yes, trade payment is certainly better than no payment. And trade business often does lead to cash business, either to that same customer (as in the case of the author who needed far more work from me than he had trade dollars to pay for) or in referrals. People who scoff at bartering don’t understand those two facts.
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