Comments on: Is Online Barter A Viable Business Model?

By: Matthew Humphreys

Matthew Humphreys — Thu, 21 Jun 2007 23:53:07 +0000

Although barter is as old as business itself in most countries, the barter exchange concept in the USA is almost invisible to the masses.

Until we see a true synergy and cooperative effort over an extended period of time in America, barter exchanges will continue to flounder in a sea of inefficiency, making no noticable impact.

The art of barter generally requires a system and a system requires trained people to assist the members or subscribers. Look at the current trends relating to customer service. Most of us want to talk with real people. I would bet that 95% of our population wants their hand held and this is the main reason that on-line systems without barter brokers don’t work.

There is a fraction of our known universe (5%) that have the sophistication to trade on their own. To hit the larger market and make an impact, you have to have customer service people that we call brokers or trade directors.

By: Andrew Pludek

Andrew Pludek — Fri, 22 Jun 2007 14:14:13 +0000

I heartily agree with Mathews’ comments above.

We are not yet at a stage where trade exchanges talk to each other properly never mind talking to the general business market in any coherent shape or form as to provide confidence to them that commercial barter works.

Until all trade exchanges accept each others trade dollars willingly in a united effort free from politics aka NATE et al; then we are doomed to flounder around picking up the edges of this fantastic potential market.

Trade exchange systems must still allow trade exchange owners direct contact with each other to facilitate members requests and desires.

By: Carl Buchanan

Carl Buchanan — Thu, 12 Jul 2007 17:19:50 +0000

My friend Matthew states that only 5% of members are able to trade on their own but that statistic seems to run contrary to the tens of millions that use eBay and Craigslist successfully.

Far more than 5% have the ability to trade on their own. Could it be that they don’t find it worthwhile to invest the time?

By: Bob Meyer

Bob Meyer — Fri, 13 Jul 2007 00:03:48 +0000

Everyone works in their best interest. As the value of trading through trade exchanges increases, so will the growth of the exchange. And, aggregately, the commercial barter industry.

Trading direct has advantages (but also usually requires more work) in that “values” are subjective…and that’s where (and why) some extremely profitable deals occur. (Example: The trading of the red paper clip–in 15 moves–for a $50,000 house.)

The value and power of working through a trading network revolves around the fact that one possesses a “currency” and has multi-lateral opportunities to spend said currency (trade dollars) through the network.

By: Matthew Humphreys

Matthew Humphreys — Thu, 19 Jul 2007 17:20:27 +0000

Responding to Carl, I want to re-enforce my point about on-line BARTER. EBay is a CASH marketplace at steep discounts more frequently than not. Craig’s List is largely a CASH marketplace as well. The menial amount of “garage sale” barter available on Craig’s List is not worth mentioning. Please, let’s make sure we compare apples to apples.