In order for any barter-type exchange the following needs must be met. These appear in order of importance.
1. Other members should be easy to find.
2. Trade credits (barter dollars) must have real value. (It is useful for a barter exchange to state that the value is equal to $1 AUD however if their purchasing power is different then the actual value of goods or services purchased through barter may be inflated, or it may simply be more difficult to buy anything on barter at all). This requires a combination of sufficient “essential” products and services and/or a large enough base of non-essential products and services to enable businesses to regularly trade.
3. The fee structure needs to be clearly defined and any benefits earned through using the barter exchange must exceed the joint cost of exchange fees + any additional labour required by the business owner to conduct the trade.
4. Methods for conducting a transaction should (ideally) be as easy as spending cash.
5. Participants should be able to regularly buy and sell on an ongoing basis
6. The amount a member earns through selling via a barter exchange should not exceed the amount a member can reasonable spend.
7. Products and services must be at fair market value.
8. The distribution of prime items needs to be fair.
9. The exchange must be self-sustaining – this ensures stability of any trade credits acquired by members.
10. The percentage of businesses on “standby” (i.e. not accepting trade because they are in credit and waiting to spend) should not exceed the number of those in debt (or more importantly, the combined dollar values should be equal).
11. Credit limits need to be fairly distributed (i.e. based on a businesses ability to repay within a given time-frame).
Copying and distributing this article
Ormita provides free updates about the generic benefits of barter to those interested in local currency, community currency, countertrade, reciprocal trade, barter exchange, time dollars, hours and other forms of community trade vehicles.
You may freely copy and distribute this article provided that you attribute the author and/ or source as the Ormita Commerce Network.
About Ormita
The Ormita Commerce Network spans 5 continents, with direct representation in more than 17 countries plus additional partnerships in a further 59 countries. The business allows companies to exchange goods and services on a reciprocal trade arrangement.
Some of our Websites
Ormita Commerce Network Australia – www.ormita.com.au
Ormita Commerce Network Canada – www.ormita.ca
Ormita Commerce Network India – www.ormita.co.in
Ormita Commerce Network Mexico – www.ormita.com.mx
Ormita Commerce Network New Zealand – www.ormita.co.nz
Ormita Commerce Network United Kingdom – www.ormita.co.uk
Ormita Commerce Network United States of America (USA) – www.ormita.com
For Licensee, Franchise and Partnership Enquiries please visit : www.ormitacorporate.com
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