Will work for cookies and clothes, bartering for business
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Small business owners sometimes choose not to receive money for their work. They might choose cookies, clothes, pedicures and even oil changes as payment. It’s known as bartering or the trading of services. Before I started my business, I participated in non-formal barter agreements to secure part-time freelance work. Others barter to get their business up and running. Still others want to land that big client to gain visibility and prove their worth. And don’t forget about business owners who provide complimentary services so they decide not to pay one another.
To barter is to trade. When you trade products you establish that the items are of equal worth, right? What about when you trade a service, like public relations, for a tangible product? Whether it’s perception or reality, I believe one person will be left feeling under-compensated (or under-bartered?).
I’ve seen instances in public relations bartering where professionals overcharge their services and others who completely undervalue themselves. In both cases, one or both (the service or the product) feel they lost out.
Whether it’s perception or reality, I believe one person feels as though they lost out on the agreement (not to mention it screws up the fee structure for other PR professionals).
Carrie Kerpen, president, The K Buzz scored a large gifting company when she and her husband started their business. The client paid them in gifts that they could send to other clients. The work The K Buzz did for this client worked out exceptionally well and it turned into a full-time client.
This scenario landed the ideal result, but it is not always the case.
I love clothes and cookies, but it doesn’t mean I’m willing to barter for them. Perhaps right out of college this would have been an attractive arrangement.
What if we began paying one another in money as opposed to a traditional barter? Doesn’t the idea of payment make us more accountable to prices we quote?
I spoke with a marketing colleague who refuses to barter with anyone. She tells them outright that she’ll trade cash, not services. One of her accounts is a salon where she has a certain amount to spend there each month. She puts money back into their business and they put money in hers. It’s an equal trade for both.
Interesting concept.
Do you have a successful service for product barter story? A negative one? I’m interested in your thoughts.
P.S. I love peanut butter cookies.
38 Comments on this post
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Laura Scholz said:
I think the keys to successful barter are to get everything in writing, to trade for equally valued services and to have an established relationship with that business. I’m currently involved in two successful trades. The first is with a graphic design company that does work for one of my clients. They needed PR help, I needed design services, and we’ve been working together for over 18 months. I am also bartering with my nutritionist (whom I’ve done paid work with before)–I’m writing copy for her website, and then she’s giving me advice in the exact monetary proportion. But again, I trust both of these vendors implicitly. I wouldn’t offer a barter to some random Joe or Jane–I save barter for established relationships when I know the quality of work I’ll receive in exchange and when we have a mutual level of respect and trust.
And I also like peanut butter cookies!
October 21st, 2009 at 8:44 am -
Kathy said:
When I was just starting out as a jeweler, I met another, more experienced, jeweler at a retail show who admired my work. I was extremely flattered when he offered to exchange jewelry pieces with me — he was eyeing one of my more expensive pieces (at the time) $50, retail. I agreed to the trade and he brought me back the cheapest piece he had in his booth – $6 retail.
I’ve never made that mistake again – I may barter, but I have a set price for my products and services and I make sure now that the exchange matches that price. And even with barter agreements, I make sure to get it in writing, including the value.
By the way, I happen to love baking peanut butter cookies, and will always trade catering services.
October 21st, 2009 at 9:09 am -
Summer said:
I barter w/ my massage services. I always do it at value. So it you service costs $35, you get $35 towards massage. I often exchange gift certificates as statement of value traded. It’s important for both parties to value the work being done. I’ve yet to have problems with it because I’ve very clear up front.
October 21st, 2009 at 9:30 am -
Becca Bernstein said:
I actually traded social media coaching for 2 weeks of labor around my house. My client didn’t understand SM, so I brought him up to speed on the new platforms and in return, he painted my house, weeded our yard and trimmed our bushes. Since we live on a big property and it was a ton of work, I felt like it was a pretty good deal.
I would do it again for the right trade off.
October 21st, 2009 at 9:30 am -
Lindsay M. Allen said:
I have to say, my experience with bartering has been GREAT. I wouldn’t barter with *just anyone* — and I think that’s a key to successful bartering. There’s an element of “barterer beware”; that is, you have to carefully choose your bartering partners to be sure you’re maximizing the benefit to all parties involved.
And one of the greatest things about bartering is that someone who pays you in goods or services is often able to do so at little cost to him/herself, so the payment ends up being more handsome than if you were being paid in cash. It’s a beautiful thing, especially if the goods or services you receive as payment are things you need anyway!
October 21st, 2009 at 9:55 am -
Lisa D. Jenkins said:
I’m trading SM consulting/services with a realtor for boxing lessons for my 15 year old son. The realtor is a talented boxer so my son is getting amazing instruction, the client is getting top of the line service from me and I’m getting exposure from awesome WOM.
October 21st, 2009 at 10:59 am -
YvetteMJackson said:
I’m totally open to bartering and in this economy though I personally am not effected, I know most people are. So I’m happy to barter my services and am happy to report that most of my trades have worked out. I usually either end up helping to generate enough business where they can pay me, or in a couple of instances have ended up gaining partial ownership in the business I was helping. As they felt they wouldn’t have succeeded with out my assistance.
Working in PR, marketing & manangement full time for myself is new to me, but I’ve been blessed with great barters. I created my own very simple website, and an IT business saw it and offered to build me a new flash interactive, hosting, updating, etc for free (value of $1000+) in exchange for me helping to market them. (currently being worked on.) They also have come on board as my “in house” web team, so when I have a client who needs a site, I automatically go to them, generating business for them and profit for me.
I have one client who’s built her entire empire not paying for one thing. She’s used “community partners” to carry her costs and/or bartered for services. Working with her, I’ve since become a business partner and am helping direct and shape her company which is now generating profits.
So yes it can be done, you just need to be careful. Get everything down on paper, just like a regular business deal with contract and all. Your treasures are stored in your own house, while biblical it rings very true, everyone has a purpose or use that is valuable to someone else.
October 21st, 2009 at 3:20 pm -
Cherisse Fonseca Rivera said:
I am a big fan of bartering. I currently barter sm consulting with a life coach. I traded services with her. She is keeping me on track with my business and I am setting up her blog and teaching her Twitter.
October 21st, 2009 at 4:19 pm -
PRsarahevans said:
I’m so glad to hear so many positive bartering stories and those who are pricing their services accurately.
October 21st, 2009 at 6:27 pm -
Jeff Julian said:
I haven’t done a lot of bartering in the PR world, but in my second life–the music world–bartering ends up being a necessity. Some times you play for drinks; some times when a show doesn’t go as well, you pay a band that travelled from out of town and don’t pay yourself in hopes that they’ll return the favor when you come to their city. Other times you trade show for show in different cities–you play in my town, i’ll play in yours. It works and it doesn’t work.
I think you’re right on, Sarah, when you say that the trades have to be of equal value and the trading partners have to be respectful of one another. Unfortunately, the only way to evaluate trading parnters is usually to trade with them–and either continue trading with them or never again.
But let’s get back to the cookies. I’ll take some chocolate chip cookies–I’ll provide the chocolate chips.
October 22nd, 2009 at 11:42 am -
Carrie Kerpen said:
Hey lovely Sarah,
Thanks for the shout out! With our client, we used the gifts we traded for (think flowers and candy) to send thank yous to prospective clients! This resulted in more paying business for us.
Barter, when clearly defined and agreed to up front, can be REALLY wonderful. But both parties have to see real value in each others services.
Enjoyed the post!
October 22nd, 2009 at 11:01 pm -
Christmas said:
It is a very nice post with a strong article.when i read it thought what have a good guide for me in part time work inside cookies and clothes, bartering for business.
October 23rd, 2009 at 6:05 am -
Bratwurst Recipes said:
I have mot against bartering. In these economy crises, many people are bartering. I know a beauty salon owner that used to pay with hair cuts and spa services to the radio people so they could do commercial for the salon.
October 23rd, 2009 at 10:39 pm -
Cartoon Bears said:
i’d like to start a bartering business any advice trying to create a business for myself so i can give to those less fortunate i don’t even have a place to do this but i feel it any advice there are people out there who just have empty dwelling and are not doing a thing sugestions please. boy oh boy money rules all
November 1st, 2009 at 3:13 pm -
Sytropin said:
I see nothing wrong with bartering…..interesting story with the beauty salon. Just another way to get through these tough times.
November 1st, 2009 at 4:32 pm -
ATV said:
This is a very interesting way of doing business. If done right, you could acquire a wealth of products and services in exchange for your own services. Of course, most of us would rather have the cash, but in some circumstances this does make sense. In the past I have provided SEO services to someone in exchange for providing some article writing. The trick is determining how much of one service is worth the same as a set amount of another service.
November 4th, 2009 at 1:31 pm -
Christmas said:
This is the case for all my housemates despite the fact that we all use different brand detergents. When I wash the same clothes in my parents’ house in the Midlands the clothes come out of the wash lovely and soft…
November 14th, 2009 at 2:07 pm -
Christmas said:
Sound like too much cheap detergent & the machine not being rinsed out properly. Maybe you could try running it without any detergent or laundry in to just to make sure.
November 14th, 2009 at 2:08 pm -
PSP Go said:
I have never really got into it, but some people love it as they don’t really have to declare it on taxes.
November 20th, 2009 at 3:09 pm -
resimleri said:
I am currently unemployed. My truck broke down, and in exchange for repairs. I made a website for the auto-mechanic, and fixed his computer at no cost.
November 22nd, 2009 at 5:05 pm -
Net Age Web Design said:
Having been self-employed in one way or another for most of my adult life, I am a true believer in the value of the barter system. Swopping value for value, and keeping cash and invoices out of the equation just makes so much more business sense.
November 27th, 2009 at 3:03 am -
printing said:
I am looking for a recipe for clothes pin cookies. I have searched online, but, many use pre-made puff pastry. I would like to make my own.
November 27th, 2009 at 12:31 pm -
printing said:
It is my first time baking them and I am interested in knowing if I need to grease or oil my clothes pins before baking with them?
November 27th, 2009 at 12:32 pm -
cizgi film izle said:
Thanks for shared
November 28th, 2009 at 8:41 am -
youtube gir said:
thanx for post
December 1st, 2009 at 3:08 pm -
izle said:
I have never really got into it, but some people love it as they don’t really have to declare it on taxes.
December 2nd, 2009 at 2:27 pm -
Film said:
This is a very interesting way of doing business. If done right, you could acquire a wealth of products and services in exchange for your own services.
December 2nd, 2009 at 2:28 pm -
Christmas said:
i’d like to start a bartering business any advice trying to create a business for myself so i can give to those less fortunate i don’t even have a place to do this but i feel it any advice there are people out there who just have empty dwelling and are not doing a thing sugestions please. boy oh boy money rules all
December 3rd, 2009 at 9:27 am -
Hair Salons said:
Interesting idea. Many business owners try different strategies for business marketing. Thanks for information this concept.
December 7th, 2009 at 5:00 am -
cashback credit cards said:
So what would you do for peanut butter cookies? I think trading fair resource exchange is a great win win situation. As long as you continue to make it a win win for both parties. I have done this several times and would like to continue to do this. Would you be up for any I could make some killer peanut butter cookies?
December 12th, 2009 at 4:45 pm -
Rent College Books said:
I have had a long time barter situation with my mecanic. he realizes that he doesn’t know anything about computers and I don’t know anything about cars. it has worked great for over 6 years…. In fact I was just there yesterday and he saved me again.
December 18th, 2009 at 5:13 pm -
blue cross tonik said:
I actually traded social media coaching for 2 weeks of labor around my house.
December 24th, 2009 at 6:28 am -
yemek tarifleri said:
i think this can be nice sometimes
January 3rd, 2010 at 7:20 am -
Net Age Web Design said:
I had a signage company for a long time, and a car radio fitment centre before that, and bartered as much as I could. Leaving cash out the equation just works for me. Trading value for value leaves invoicing and the taxman out of the picture, and everybody actually gets a proper bargain!
January 5th, 2010 at 10:33 am -
calivita said:
calivita interest in nutritions
January 10th, 2010 at 1:40 pm -
Generic online said:
I also see nothing wrong with bartering…..interesting story with the beauty salon. Just another way to get through these tough times.
January 15th, 2010 at 3:24 pm
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