BUSINESS MARKETING

What Is Barter

What Is Barter

Bartering is the act of trading or exchange of goods or services for another between individuals and businesses without using a medium of exchange such as money.

A bartering economy differs from a monetary economy in a variety of ways. The primary difference is that goods or services are exchanged immediately and the exchange is reciprocal, meaning it’s a fair trade (banner system), with each party getting the thing they want or need in an even amount to what they are offering in exchange.

The important thing to remember about bartering with other businesses is that the tax authorities in most counties (such as IRS) consider barter taxable. This means that you must keep a record of all barter transactions, including any expenses related to these transactions and the income from these transactions.

Advertising bartering comes in all shapes and sizes. Some top-tier sites negotiate large-scale barter deals directly, effectively putting millions of unsold impressions to good use. Many small sites use banner exchanges to increase their reach. Ezines often swap sponsorships to boost subscriptions.

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