Video Podcast: Startups, Community Currencies, and Barter in the News
In this week’s quick video podcast, I present the new startup barter web sites I have found, the community currencies popping up, and four juicy pieces of news for the industry. Enjoy!
Click below to play:
Jct: How in the world are barter networks that rely on raking a percentage of every transaction going to compete with community currencies that rely on a one-time service charge? Who in their right mind would pay an 8% fee on every transaction to use barter credits when they can pay a small one-time service charge to use LETS credits interest-free?
Perhaps barter networks offer more than just a currency with which to do business.
“Perhaps barter networks offer more than just a currency with which to do business.”
Jct: Why pay 8% on every transaction forever when you can start your own personal online account and keep the 8%. What do you think they offer that a LETS Directory of Goods and Services does not offer for its yearly service charge?
In my experience, barter exchanges provide a number of services beside alternative currency bookkeeping, marketing being the key component. What community currency will go out and find you someone to transact business with? What community currency can afford to have a broker working full time to make sure that the currency is being used, that transactions are occurring, and ultimately insuring that you, the customer, get what you want. Show me the currency, outside of the barter realm, that does that. Additionally, a good barter exchange will actively market you to the other members, helping you increase business and get new customers. The only thing a community currency provides that is even close to this, in my experience, is a list of other participating businesses, which is very passive. Plus, a good barter exchange won’t just offer you a credit line, they’ll buy your inventory outright, if you own an appropriate business for that.
Community currencies have their place, but so do barter exchanges. They do offer some crossover services, but both are distinct and separate in their execution.
Jct: I just meant to alert you to the eventual implementation of global time-trading and once everyone is using the same medium of exchange, and there is enough, then there’s no need for brokers to drum up business. Yes, while the national systems malfunction, barter is a savior life-boat for businesses just like LETS is a savior-lifeboat for people (and businesses).