Who Needs Money? Home Business Barter For Fun And Profit
When you’re first starting out on your home business journey, you’re generally a.) excited, b.) scared shitless, or c.) both. The fear generally comes from the fact that you have no clients and no money and the possibility of sleeping in a cardboard box seems quite likely.
Home business growth traditionally comes verrrrrrrrrrry, verrrrrrrrrrry slowly and then at some tipping point explodes to the point of ridiculousness. (Just ask the charming gentlemen who hang out at Men With Pens.) If you’re in the beginning phases, though, it seems like the tipping point is either so far into the future that you can’t see it or completely impossible.
This growth explosion usually comes by word of mouth. Word of mouth is awesome, but you have to have a few mouths going before you can benefit from it. There are a bunch of ways you can do this, but today we’ll tackle barter.
(EDITED: After I wrote this but before I posted it, the lovely Tei wrote on bartering at Barter: It’s What’s For Dinner. When I saw this in my feedreader I told myself I really should go back and read it before posting this piece. Then I forgot and now I look like Miss Copy Pants. Sorry, Tei. I suck.)
What is bartering?
Bartering is trading services or products for other services or products, bypassing filthy lucre altogether. I “sell” you marketing in exchange for unlimited access to your porn collection, for example.
Why bartering is cool for your home business
People, especially broke ones, are much happier to trade services than pay you money that could be used for exciting things like groceries and electricity. You show them your stuff and get on their radar and they can whore you out to all their — hopefully less broke — friends.
It works the other way as well. If you are dirt ass poor but need a website, you might be able to swindle someone into doing your website in exchange for your services instead of your money. You both get stuff you want but nobody pays a dime.
How do I get the barter party started?
There are two main types of bartering:
Interpersonal bartering is when two people or home businesses trade products or services, generally services. You do graphics, I do copywriting, we trade. Easy peasy.
Network bartering is a much more formalized process. Somebody somewhere starts a network of businesses and they create a fake cash system. I do copywriting for the guy who cleans pools. I charge him $200 fake dollars and get that fake money in my account. His account is debited $200 fake dollars, meaning he has to clean $200 worth of pools for other people in the network. These pools do not have to be mine.
This is a pretty insanely complicated process at the back end and I wouldn’t recommend starting your own network, but it’s easy to join one that already exists and hang up your little shingle.
Is it legal?
Each state/province/country has its own rules about bartering and taxes. If you care about this sort of thing then you’re likely the type of person who has an accountant. Ask him or her. If you don’t care about this sort of thing then I strongly recommend you ask nobody, your accountant or otherwise.
I’m not going to get into the ethics of cheating on your taxes because I am morally vacant. If YOU have thoughts, please post them and I promise I won’t argue.
So if bartering is so cool, why aren’t we all doing it?
Bartering is good for those just starting out. When you’re new, you don’t have anything better to do anyway. You need the work or the portfolio or the references. Once you reach a certain point in your career you don’t have a whole lot of time to work in exchange for a free haircut and some nice words from Jenni down at Jenni’s Custom Clippery.
Bartering is good for the socially aware. If you want to do a favour for someone, bartering can be a nice way to go.
Bartering is good for those who want to stick it to the man. Some people, some home businesses, (hell, some societies) exist on barter alone. If you don’t feel like making a bunch of money just so you can turn around and pay taxes to a government you don’t support, bartering is a handy way to get around that.
Bartering is good when you can’t afford stuff. When you can afford it, it’s a lot simpler to just write a check.
Bartering is good when you like what you’re getting. DO NOT get sucked into crappy barter arrangements for things you don’t like, need, or want. You will get screwed and end up totally resentful.
Bartering is good when everybody’s equal. If I charge $100 an hour and you charge $100 an hour, each hour is equal. If I charge $100 an hour and you charge $10 an hour, the hours are not equal anymore. Two hours of graphic design does not have the same market value as two hours of babysitting. The closer you can work it to resemble cash, the happier everybody will be.
Well, except the $10 an hour guy. He’s going to feel screwed but that’s what he gets for working in a $10 an hour industry.
How to score barter clients
Tell people you do it. The internet is big and the economy is down. Add it to your services page, preferably at the end. Tweet it. Tell your friends.
But won’t everybody go for barter instead of cash?
No. Why? First of all, not everybody’s as broke as you are. Second, some people don’t dig equality in client/provider relationships. Sometimes I just want to pay you to do it and never talk to you again. Barter is not conducive to that. Last, many clients can’t work with you for whatever reason. If you don’t work online it doesn’t matter how good my social media marketing strategy is for you — you can’t use it so I’m just gonna have to pay cash..
So should you be bartering your micro-business?
Generally speaking, barter only when you can’t get cash and when the product and service for which you’re trading has value for you. (How to figure out if it has value: If you have to think about it, the answer is no.) Barter can’t pay your rent but it might have a hand in paying your future rent.
I’m curious to hear your experiences in bartering? Have you done it? Have you been happy with the results? Are you doing it now? Speak! Let your voice be heard.
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