Check out the new
BarterNews daily blog at www.barternewsblog.com
for new contacts, strategies and techniques.
XO Limited Launches Inclusive “Pay
XO Limited has
recently launched its new “pay anyone” feature, where members of any
barter exchange can send barter dollars to anyone who has a mobile
phone or e-mail...even non-barter exchange members. The feature is
designed to make barter more “liquid” and more accessible to the
members can transfer funds to either (a) members within the same
exchange, (b) members of other linked barter exchanges—those within
their pooled or direct credit limits, or (c) any other business or
individual who has a valid e-mail address or SMS capable mobile
When funds are transferred by a barter exchange member to a non-
member they receive an e-mail or SMS message advising them of the
recipient clicks a link, fills out a few details, and immediately
becomes an enrolled member of your exchange. The payment will be
instantly received and can be used with any other barter exchange
member or to pay anyone else online.
Accepting recipients automatically become a member of the barter
exchange from which the payment originated. Exchanges can set,
eliminate, reduce, or put a time-limit on the fees for Pay-Anyone
payment recipients and set credit limits as required.
information on XO Limited go to:
“What we have here is a failure to communicate!”
one of the most visible people in the barter industry said the #1
reason why the industry wasn’t farther along in its development was
due to a “failure to communicate” by those in the business.
realization was the genesis of The Competitive Edge
newsletter, now into its 18th year of publication. Trade exchange
owners who use this powerful marketing and promotional tool are
never guilty of “failing to communicate.”
As the owner
of a trade exchange you must stay in front of your clients.
Informing, educating, and inspiring them, because your clients’
bartering is a relatively small percentage of their overall
business. So if you don’t keep their interest and enthusiasm for
trade at a high level, you lose.
aim, like all other businesses, is to get your clients coming back
for more. Every extraordinary business (and every trade exchange
owner who wants to be extraordinary) knows that the customer you
have, is a lot less expensive to sell than the customer you don’t
Want to take
your exchange to a higher level? Use The Competitive Edge
newsletter in your operation—it “sells” the many benefits of working
through your trade exchange like nothing else!
more about The Competitive Edge newsletter and how it can help build
your trade exchange, click
Fixed-Wireless Providers Barter For
Lindsey, head of the Rural Broadband Coalition in Washington,
complains that the U.S. is falling behind other countries in terms
of getting broadband to rural communities. (The nation ranks 12th in
total broadband penetration.)
indsey noted fixed wireless has taken the
forefront, with satellite service being a good alternative in some
areas. There are about two thousand fixed-wireless providers in the
U.S., most of them mom-and-pop operations with a few hundred users.
These companies often barter for antenna space
on hilltop houses, and charge others between $50 and $75 a month for
several megabits per second of wireless connectivity, which usually
has a range of six to eight miles. (A subscriber is given a radio
and mounts a fixed antenna with a line of sight to the transmission
Globally, Business Executives Optimistic
the Economist Intelligence Unit, top executives are very positive
about business...looking forward the next three years. What’s
creating such optimism? Emerging markets, especially China and
polls more than 1,000 executives annually and is sponsored by UK
Trade and Investment, a government body that promotes British
exports UK investment. Of the executives polled, growth in sales was
considered the greatest priority in 2007...more than controlling
centered around political uncertainties in the Middle East, and a
slowdown in the U.S. housing market.
Direct-Sales (Multilevel Marketing) Dropping In U.S.
About 85% of
direct-sales marketing happens outside the U.S. today, compared with
20% two decades ago, according to the Direct Selling Association, a
Washington-based trade group. There were an estimated 59 million
people worldwide who participated in direct-sales in 2005.
Much of the
growth is occurring in Third World countries including Mexico and
Brazil, which typically have higher rates of unemployment and
underemployment than the United States.
countries, direct-sales marketing offers entrepreneurial
opportunities with little start-up costs. And because direct-sales
operations do not need stores or sales staff, it is also relatively
easy for direct-sales and multilevel marketing companies to expand
Tax Tips For Business Barterers
By David William Tuttle, Ph.D., CPA
Trade exchange barter has been great for our business. We make
every attempt to use barter for all of our business related needs,
such as computers, printing, advertising, legal advice and client
While this is good for cash flow it also has very important tax
saving ramifications, which will be the focus of this article.
We are a CPA firm in Fresno (CA) specializing in resolving tax
problems. We prepare past-due returns, represent clients in tax
audits and appeals, arrange installment agreements and analyze
whether taxes could be discharged through bankruptcy.
Because we are very familiar with how our client’s got into
trouble with their taxes, we hope to be writing regular articles for
BarterNews advising you how to take proactive steps with your taxes
and stay out of tax trouble—with your silent partner, the IRS!
Since your barter credits are part of your businesses taxable
gross income, it is imperative that you make every attempt to spend
your barter income for business purposes in the year you have earned
This will allow you to offset barter business income with barter
business expenses, and as a result you avoid paying taxes on your
trade credit “buildup” at the end of each years.
Unfortunately too many eager barterers become former barterers
when they get their income tax bill. This is because they do not
think of trade credits as part of their total business working
capital. They think of it either as “fun” money and spend it only
for personal items, or “funny” money which they spend wastefully.
When the tax bill comes they have used up their cash for business
expenses which they could have paid for with their barter credits,
and consequently they don’t have enough cash to pay the taxes on
their barter income.
Often former barterers are too busy with their daily operations
to find out how to use their barter credits for business purposes.
They think they’ll get around to exploring spending areas for their
new-found barter dollars someday. . .
But they never get around to it. Consequently their taxes kill
them because of it, and then they quit trade. They then tell
everybody they know, “I tried trade, but trade just doesn’t work!”
To make your whole working capital cycle, which includes cash,
barter, receivables, payables, and taxes, operate effectively, you
need to be creative and disciplined.
You need to be willing to stop paying cash to people just because
you have done business with them over a long period of time. Either
get them on trade or find someone who will trade with you!
Remember, when you pay cash, that is a one-sided transaction.
There is one buyer, and one seller. When someone likes you only for
your cash, you really don’t have a solid relationship, built on
trust, and what is good for both parties.
But when you trade, there are two buyers and two sellers. You
have formed a strategic alliance with someone who cares more about
you than just your cash.
To lower your taxes you must be a good planner, so try to use
only trade partners (whenever possible), be imaginative, and remain
focused on your cash, trade and tax objectives. Remember that
anybody can pay cash or use a credit card, but you’ll end up paying
more taxes if you do.
To stay out of trouble with the IRS, treat trade dollars the same
as cash in recording income and expenses. Therefore if you have a
lot of trade dollars at the end of the year, you obviously will have
more taxes to pay on that build-up.
If you use your trade credits wisely for business purposes, it
will lower you tax liabilities, improve your cash flow, increase
your productivity and net worth.
Another way to use trade credits for a business expense, while
boosting morale and increasing your productivity, is paying your
employees in lieu of a cash wage increase with trade credits. It
just makes good business sense.
If part of your revenue is trade credits then part of your
payroll should be paid in trade as well. Naturally wages paid in
trade credits are treated like cash wages for payroll tax purposes.
You will find that by introducing your employees to the many
benefits of trade, not only will you enjoy the rewards of using
trade, and preserving cash, you will have also introduced your
employees to trade and what it an do for them.
It makes them part of the fun and profit cycle of trade. They
begin to take a personal interest in the whole process. You will
soon find that they are pointing out trade opportunities to you,
that you have formerly missed.
To reiterate, from a tax point of view, it just does not make
good sense to hoard trade credits. You do not want a large trade
Since barter credits are treated as additions to your taxable
income, you must use them for business expenses to reduce your
taxable income whenever possible. It is that simple.
If you are currently being audited by the IRS or Franchise Tax
Board, if you owe money that you cannot currently pay to the
government, or if you’ve ever considered bankruptcy to discharge
your old taxes, and would like a personal consultation with me
either by phone or in person, please don’t hesitate to call my
office to set up an appointment. We gladly accept many trade
currencies for our services.
David Wm. Tuttle,
Ph.D., CPA is the founding partner of Tuttle & Tuttle CPAs, located
in Fresno, California. The firm specializes in tax matters, which
include representing clients (who are either being audited or owe
taxes they cannot currently pay) before the IRS, FTB, Board of
Equalization, and Employment Development Department. They also
analyze their client’s tax debts with a view toward possibly
discharging them through a chapter in the US Bankruptcy Code. To set
up your appointment with Mr. Tuttle, please call (559) 291-5527.
The Easiest $100,000 You’ll Ever
Bring To The Bottomline!
cash, as usual, from the guest accounts staying at your
facility that require the use of professional AV services.
And rather than shouldering your ongoing employee costs, or
your current vendor’s cash agreement for AV services,
here’s a much better alternative:
with a proven national vendor (a sterling 25-year track
record) who will provide all of the AV services for your
hotel on a 100% TRADE BASIS! (Payment to be in the form of
hotel rooms and/or trade dollars.)
Your hotel’s annual AV billings must be a minimum of $200,000, and this
offer is available only in the continental United States.
confidential introduction contact Bob Meyer via e-mail:
(Please type in AV Services On Trade in the subject
line of your e-mail.)
Attention Trade Exchange Owners:
member hotel(s) have a minimum of 10,000 sq. feet of meeting
space and annual billings of at least $200,000 for AV
services this is a great opportunity to earn substantial
cash service fees on the hundreds of thousands of trade
dollars your hotel member will be paying the vendor. Contact
Bob Meyer at the above e-mail.
How To Get More Sales In
Our street-smart restaurant
marketing report shows proven ways to rapidly boost your
restaurant’s sales & profits.
Our Web Site Has A Search Tool For You
wondered if a certain topic, person, or organization has been
written about on the Barternews.com web site? Now you can easily
find out, as we’ve added a search tool. It will quickly give you the
answer to your questions, in 3 easy steps that take about 12
At the top
right of the page, just under where you sign up for the Tuesday
Report you will see a little Google box. It is where you can (1)
type in the name of a subject, company, or person. Then (2) click
the button www.barternews.com to search the site, followed by (3)
hitting the search button.
The Growth and Use of Secondary Capital (New Money) Creates
Unprecedented Wealth In Today’s New Age Of Possibility
many forms of secondary capital—which can be defined as any
financial instrument that measures and communicates value in a
common language. Would you like to see and learn more about the many
forms of secondary capital?
We have 70
free, informative and inspiring, articles for you in our “Secondary
Capital Section.” Check it out...
New Money-Making Ideas And Valuable Contacts!
You can obtain
useful, informative ideas and contacts in every available back-issue
barter company in the world is listed on our web site,
click through to our Global List
of Barter Companies.
A Gift To A Friend Or Associate.
If you know someone who might benefit from this newsletter, feel
free to forward it to them! (See the “box” at the end of the
newsletter for the forwarding service.)
We welcome your
comments, questions, and observations.
Copyright BarterNews 2007. Redistribution of BarterNews
content expressly prohibited without the prior written permission of BarterNews.