Bartering has been an acceptable practice as long as humans have roamed the planet. Bartering is the simply act of trading one thing for another of comparable worth. When you practice bartering, you are using goods or services as currency rather than money. However, most people considering bartering to be a somewhat archaic practice, thought it is estimated that more than 50% of the companies on the New York Stock Exchange use bartering as a form of business.
If you are interested in the concept of bartering, it might be a good idea to join a bartering club. Bartering clubs are groups of people – some with memberships in the thousands – that work together to pair different people based on their bartering needs. Although you can barter with just about anyone, a bartering club gives you access to more people, thereby increasing the likelihood of satisfying your needs.
Why Haven’t I Heard of Bartering Clubs? Bartering is more popular in times of recession and financial despair. When the economy suffers, the demand for bartering increases accordingly. However, when the economy is strong, people are more likely to go out and buy the things they need than to pursue bartering as an alternate option. You should begin to see an increase in bartering clubs because of the Internet, though, and there are hundreds of options for joining bartering clubs.
What Can You Use to Barter in Bartering Clubs?
Anything. Literally: anything. Used items, collectibles, homemade crafts and even services are appropriate things with which to barter. You might think that you have nothing to bring to the table, but a close examination of your home and your skills will most likely prove otherwise. Bartering clubs are also sources of information; you might learn something from other members that will help you determine what you have with which to barter.
How Do I Know Which Bartering Club to Join?
That is entirely up to you, but I would recommend some sound research before joining any bartering club. Some bartering clubs are more social than anything else, geared toward stay-at-home moms and other groups. Others are established for business practices, and advocate the use of bartering clubs to acquire business transactions. Your specific needs for bartering will determine which type of club to join.
Where Can I Find Bartering Clubs in My Area?
This might be difficult at first if you aren’t familiar with bartering clubs. One way is through your local Chamber of Commerce, which will have records and information related to bartering clubs in your area. Another method is through the Internet. Perform a Google search on bartering clubs in your geographical location. You can also start your own bartering club, which can be a lot of fun. Find information for starting your own bartering club at www.work-at-home.org.
What About Bartering Club Membership Fees?
Most bartering clubs do have membership fees, which are important to keeping the group running and prospering. Some will charge as little as $25.00 per year while others might have a monthly fee of more than $100.00. Examine the membership fees for the bartering clubs you are considering compared with the benefits you will garner from the club. It’s senseless to pay a $200.00 membership fee for something you will use once or twice a year.
Do I Have to Report Bartering Transactions to the IRS? The short answer is “yes”. From 1982 on, bartering has been considered a business transaction by the Internal Revenue Service, and in order to be in compliance, you must report the value of bartered items as income. However, the IRS probably won’t be knocking down your door if you trade a carton of eggs for some milk; consult a tax attorney or CPA if you are unsure of your legal standing when it comes to bartering.
