How does barter work?
American Exchange Network Members earn trade dollars by selling products, services, travel or advertising on barter to another member. That seller can then purchase a variety of products and services using the trade dollars they have earned from sales that were deposited into their American Exchange Network account. For example, if a painter trades $1,000 worth of painting services to a restaurant through American Exchange Network, the painter can now buy $1,000 worth of products or services from any participating member of American Exchange Network, or they may even choose to accumulate more trade dollars to make a larger purchase in the future. And, as a member of American Exchange Network, you are empowered to purchase or sell products or services with any members of American Exchange Network or its affiliates. For more information, call me (Ric Old) at 913.620.7392.
Any educator, business or person that can offer a product or perform a service can apply for an account with American Exchange Network. You must agree to the trading rules and be fair and equitable in your dealings with other American Exchange Network members, just as if they were cash customers. American Exchange Network is simply building a large network of educators, companies and people that understand barter and want to get the numerous benefits it has to offer.
Why would I want to accept Trade dollars instead of cash?
You’re not accepting Trade dollars instead of cash. You’re receiving new trade customers in addition to your cash customers, and at full market value. If you have idle time in your week or your shelves are overstocked, why not accept trade dollars? You can spend the new found revenue to offset business expenses, pay employee incentives, or enhance your quality of life. And quite often, trade clients will refer their cash paying friends and family when they enjoy the great service you provide them.
American Exchange Network eliminates the restrictions and downfalls of one-on-one bartering in which each business must want what the other has to offer at the exact same time. With American Exchange Network you are not limited to buy from the member you sell to. You can use your trade dollars to purchase from any member with offers available through the virtual trade floor. In addition, our membership brings your company new sales to new customers so that you can used the new found revenue to minimize your cash outlay for everyday business expenses.
Why should I pay cash for my products and sell it for trade dollars?
In every business there is a cash cost of doing business. Bartering is about getting full retail value for your products or services. If you’re in a service industry and have empty appointments, you still have fixed costs of rent, electricity, salaries, etc. You pay these costs whether or not you have customers, so why not bring in trade clients to fill in the empty appointments. After all you can’t sell today’s empty time tomorrow.
If you’re a retail store that purchased 100 items at $10 each and sold 90 of them for $20 each, you’ve covered your cash costs and realized a cash profit. Now you have 10 items just sitting on your shelves. You can put them on sale for $10 each in cash and have $100 worth of buying power or make them available for trade dollars (full retail, not sale price) and have $200 trade worth of buying power.
Restaurants have empty tables, hotels have empty rooms, and radio stations have empty time. Just remember, when customers are coming through your doors, they always bring more customers.
The cash you save by using trade dollars can be used to pay for those services that might not be available in the network. For example, you can pay for a mechanic, advertising, and dental care all on trade. The cash you save on these expenses can be used to pay for your rent and electric bill. Or perhaps you can use your trade dollars to have Mom And Pop Website Shop design you a new custom website that attracts more cash customers. Bartering is a powerful business tool that brings you cash.
The price you quote to American Exchange Network members is the same price you would quote to a cash paying client. Trade dollars are simply another method of payment, just like cash or a credit card. Remember that business owners are educated shoppers.
What if I need to make a purchase before I have earned enough trade dollars?
Just like a bank, we encourage businesses to apply for an American Exchange Network line of credit. If you qualify you can begin purchasing immediately. You can also use your line of credit to expand your business or form a new business venture when traditional funding is not available.
Barter exchanges are required by the IRS to report all barter sales at the end of each year. American Exchange Network members receive a 1099B at the beginning of each year for barter sales made the previous year. Just like with cash sales, there are business deductions you can take when you use trade dollars for business expenses.
Who pays for shipping?
Shipping is always paid by the buyer in cash or credit card.
The TEFRA Act designates Barter Exchanges as third party record keepers, the same as banks and credit card companies. IRS regulations dictate that barter sales are the same as cash sales, as the seller is receiving revenue that can be spent just like cash to purchase products and services. Therefore, barter sales are taxable income that must be reported to the IRS by barter exchanges. By February of each year, American Exchange Network will send each member a 1099b detailing their barter sales for the previous year. In March of each year, American Exchange Network reports all income from barter sales to the IRS, as required by law.
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| Those Who Barter Have An Ace Up Their Sleeve |
American Exchange Network Members earn trade dollars by selling products, services, travel or advertising on barter to another member. That seller can then purchase a variety of products and services using the trade dollars they have earned from sales that were deposited into their American Exchange Network account. For example, if a painter trades $1,000 worth of painting services to a restaurant through American Exchange Network, the painter can now buy $1,000 worth of products or services from any participating member of American Exchange Network, or they may even choose to accumulate more trade dollars to make a larger purchase in the future. And, as a member of American Exchange Network, you are empowered to purchase or sell products or services with any members of American Exchange Network or its affiliates. For more information, call me (Ric Old) at 913.620.7392.
Who can barter?
Why would I want to accept Trade dollars instead of cash?You’re not accepting Trade dollars instead of cash. You’re receiving new trade customers in addition to your cash customers, and at full market value. If you have idle time in your week or your shelves are overstocked, why not accept trade dollars? You can spend the new found revenue to offset business expenses, pay employee incentives, or enhance your quality of life. And quite often, trade clients will refer their cash paying friends and family when they enjoy the great service you provide them.
How is bartering through American Exchange Network better than direct bartering?
American Exchange Network eliminates the restrictions and downfalls of one-on-one bartering in which each business must want what the other has to offer at the exact same time. With American Exchange Network you are not limited to buy from the member you sell to. You can use your trade dollars to purchase from any member with offers available through the virtual trade floor. In addition, our membership brings your company new sales to new customers so that you can used the new found revenue to minimize your cash outlay for everyday business expenses.
Why should I pay cash for my products and sell it for trade dollars?
In every business there is a cash cost of doing business. Bartering is about getting full retail value for your products or services. If you’re in a service industry and have empty appointments, you still have fixed costs of rent, electricity, salaries, etc. You pay these costs whether or not you have customers, so why not bring in trade clients to fill in the empty appointments. After all you can’t sell today’s empty time tomorrow.
If you’re a retail store that purchased 100 items at $10 each and sold 90 of them for $20 each, you’ve covered your cash costs and realized a cash profit. Now you have 10 items just sitting on your shelves. You can put them on sale for $10 each in cash and have $100 worth of buying power or make them available for trade dollars (full retail, not sale price) and have $200 trade worth of buying power.
Restaurants have empty tables, hotels have empty rooms, and radio stations have empty time. Just remember, when customers are coming through your doors, they always bring more customers.
How can I pay my rent and electric bill with American Exchange Network?
How should I price my product or service?
The price you quote to American Exchange Network members is the same price you would quote to a cash paying client. Trade dollars are simply another method of payment, just like cash or a credit card. Remember that business owners are educated shoppers.
Just like a bank, we encourage businesses to apply for an American Exchange Network line of credit. If you qualify you can begin purchasing immediately. You can also use your line of credit to expand your business or form a new business venture when traditional funding is not available.
Do I have to pay income taxes on the sales I make with American Exchange Network?
Barter exchanges are required by the IRS to report all barter sales at the end of each year. American Exchange Network members receive a 1099B at the beginning of each year for barter sales made the previous year. Just like with cash sales, there are business deductions you can take when you use trade dollars for business expenses.
Shipping is always paid by the buyer in cash or credit card.
Why do you ask for my Social Security number or Federal ID #?
The TEFRA Act designates Barter Exchanges as third party record keepers, the same as banks and credit card companies. IRS regulations dictate that barter sales are the same as cash sales, as the seller is receiving revenue that can be spent just like cash to purchase products and services. Therefore, barter sales are taxable income that must be reported to the IRS by barter exchanges. By February of each year, American Exchange Network will send each member a 1099b detailing their barter sales for the previous year. In March of each year, American Exchange Network reports all income from barter sales to the IRS, as required by law.