How Barter Works
Barter has been around as long as humans have been trading goods. Today, it’s still a fantastic way to offset the costs of doing business…plus.
1. You Need Customers
As a business owner, you know that to grow and achieve your financial goals, you need to consistently attract good customers. By placing strategic ads and making sure your online presence is easily found, you will invite new customers to find you.
2. Cashflow is Low
Cashflow is a challenge for most small businesses. When a client pays late, or you need to invest in the business, it can limit your ability to pay bills. This is where the benefits of being an active ITEX member give you the advantage you need. You can leverage your ITEX account to buy products and services to keep your business running.
3. Shift the Scales
The ITEX member directory (available right on your phone)and our helpful team make it easy to find a variety of the products and services you need. In addition, we bring you others who are looking for your services. Being an ITEX member connects you with 20,000+ other quality business owners across the nation who make their professional products and services available for ITEXdollars. It’s an amazing way to go…and the benefits don’t stop at your business either.
4. Live Your Dreams
The ITEX community isn’t just helpful for your business. It’s also there when you need a vacation, a dental visit, a massage, gifts, dinners out, catering, housekeeping, and so much more. Once you’ve experienced what you can buy with your ITEX dollars you’ll be on your way to providing those little extras for yourself all while keeping your cashflow free and available to your business.
Frequently Asked Questions
Below we have listed some of our most frequently asked questions. If you still have questions, please visit the dedicated FAQ/Help area of our website.
What is Barter?
- You provide a service or sell a product to someone on the ITEX barter network.
- They pay you in ITEX dollars.
- You then turn around and find a product or service that will help your business (or your personal life) and then you purchase from them.
- Your account is debited for the amount purchased.
Why do I need Prime Trade NW or ITEX to barter?
What about paying taxes on bartered and traded items?
The IRS considers Prime Trade NW / ITEX as the record/bookkeeper for our members. The IRS and States treat trade exchanges just like they would any cash account. Bartering doesn’t exempt you from paying tax, instead is functions as an additional taxable revenue stream available for your business.
Your ITEX account should be treated like you would any other account when doing your taxes. You get monthly accounting statements and are emailed transactions as they happen. At the end of the year, we issue 1099B’s for reporting at the federal level.
How do I get started?
How much does it cost to be a member of Prime Trade NW?
- You sell a service or product to another ITEX member for $1000.
- You then purchase a service or product within the network for $500
- Your total fees for close that month will break down as follows:
- $25 Monthly Membership Fee
- $60 Transaction Fee for the $1000 purchase (6%)
- $31.20 Transaction Fee for the $500 sale
- Total cash fees for the month: $116.20
- Value of products and services traded: $1500
How does barter help me grow my business?
- You have products or services for sale.
- You try traditional advertising, but don’t yield new customers.
- You place an ad on ITEX and you get a call and convert a prospect into a customer.
- They pay you in ITEX and tell you that they may not have purchased from you if it were a “cash” purchase but because it was ITEX they had low risk and high value in what you were selling.
- You make a new customer that you can maintain with ITEX bartering, or you can convert them to a cash customer.
- They refer you to others, which helps grow your business!
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