Exchange Setup

This page is under construction and will ultimately contain a wealth of information about the initial set-up of a barter exchange, so be sure to visit again soon…

There are many factors to decide on when initially setting up your new barter exchange…

It will be helpful to your planning if you first think about your answers to these questions:

Do you want a small local barter exchange or an online exchange that can service not only local members, but also exchange members nationwide?

Will you provide for a trade broker to manage each member account and assist members with trading? Or, will you rely on Internet software for members to manage their own trading?

Will this be a full time career or a part-time occupation?

Are you looking to work just enough to earn $50,000 a year or are you more interested in working it to earn $500,000 a year?

Do you have money set aside for expenses if you don’t earn much for the first 6 months, or do you need to start earning money immediately to cover expenses?

Are you able to make a $3000 to $5000 investment in your future to jump start your exchange, trading and revenues in order to get your exchange in fast gear 6 to 12 months sooner? Or, do you prefer to do it slowly and learn on your own through trial and error as you go along?

Are you just exploring the possibility of starting an exchange, or have you already made your decision and are ready to make the move to this new exciting business?

Future topics coming soon (highlighted in blue)…

Mission Statement

Trading Rules

You will need to develop Trading Rules detailing the Terms & Conditions for businesses to join and participate in your barter exchange. Be sure to include the duties and responsibilities of all of the parties (buyer, seller and barter exchange), in addition to specifics about transaction processing and record keeping.

Following is a list of points that should be covered in your trading rules. If you will be using online barter software, it should come with a set of trading rules that you can fine tune and modify to suit your specific exchange.

PROVISION OF SERVICE

USE OF SERVICES

NO WARRANTIES

INDEMNIFICATION

MISUSE OF SERVICES

LIMITATION OF LIABILITY

ACCESS

CHOICE OF LAW AND FORUM

ENTIRE AGREEMENT

Following details ideas for several disclaimers that you might want to include in your trading rules:

YOU JOIN AND PARTICIPATE IN THE SERVICE AT YOUR OWN RISK. EXCHANGE NAME SHALL NOT BE LIABLE FOR ANY DAMAGES OR LOSSES WHICH RESULT TO YOU FROM YOUR USE OF OR PARTICIPATION IN THE SERVICE.

EXCHANGE NAME DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

USE OF INFORMATION, PROGRAMS OR OTHER MATERIALS OBTAINED FROM OR THROUGH THE SERVICE IS AT THE SOLE RISK OF THE ACCOUNT HOLDER.

IN NO EVENT WILL EXCHANGE NAME, ITS AGENTS, OR AFFILIATES BE LIABLE FOR ANY OTHER DAMAGES, INCLUDING LOST PROFITS, LOSS OF DATA, OR OTHER SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE PURCHASE, USE OR PERFORMANCE OF THE SERVICE.

Day One
Week One
Month One

Core Accounts

Core accounts are those businesses that will generate immediate trading in your exchange, as every business needs the products or services of these businesses. Once you have the appropriate core accounts to satisfy the needs of your members, you can move on to prospecting for other account categories. Note that as your membership base increases, you will need to add more members in specific core account categories so that you always have sufficient supply to satisfy demand.

• Restaurants – Businesses patronize restaurants for their business luncheons and dinners. In addition, having a nice selection of restaurants will enhance a member’s personal life, as they will be enabled to dine out without spending cash.  A great selection of restaurants in different areas of your city or town will enable your members to offset expenses for business related meals by paying for the meals with trade dollars instead of cash. Initially, it’s best to have at least one restaurant for every 10-15 members, and once your exchange is established with over 150 members, at least one restaurant for every 20 to 50 members.

• Printers – Every business needs printing. Business cards, letterheads, envelopes, brochures & flyers, and marketing materials are a significant cash expense for businesses that can be converted to a trade expense. Most printers welcome the extra business that can be referred to them by a trade exchange as they can use it to fill empty press time, or in many cases when the job requires four color printing, actually include the print job with another print job, filling empty space on the page that would have been trimmed off as scrap.

• Contractors - Most businesses need contractors for new construction, renovations or repairs. These include all phases of construction such as plumbers, electricians, flooring installation and maintenance and HVAC. Plus due to the current state of the economy and real estate market, contractors are anxious for new fill in business to keep their workers busy.

• Maintenance & Cleaning – Most larger businesses need facilities maintenance and cleaning and every small business can use a cleaning company for a once a week cleaning. Getting one or two maintenance and cleaning companies to start will get you a member that will provide a useful service to most of your members and it will offset a cash expense. In addition, it will provide the maintenance company with new customers that they normally would never have had.
• Cleaning Chemicals & Supplies
• Dentists
• Parking Lots
• Lawyers
• Auto Repair
• Radio Stations
• Billboard Companies
• Lawn & Property Maintenance

New Member Marketing
Managing Members
Credit Lines
Brokers
Commissions
Sales People
Sales Incentives
Trade Brokering
Account Management
Haves & Wants
Call Logs & Notes
Correlation
Newsletter
Daily Trade Flash
Networking
Trade Fairs