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The weekly newsletter for everyone interested in barter--the world's most versatile business tool!

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February 8, 2000

In this week's report. . .

  • Barter is coming full circle
  • Olympic barter deal targets tickets
  • Tip of the week
  • Airline currency to expand
  • Here & there. . .


"This business-to-business barter is mind-blowing stuff."

The February issue of Business 2.0 had an extensive 4-page article titled, "Cash-Free Economy," which mentioned several barter companies but prominently focused on

Giving the subject a big push forward were quotes from Mohan Sawhney, a professor of electronic commerce and technology at Northwestern University's Kellogg Graduate School of Management:

"Business-to-business barter is going to be massive. With the Internet it's inherently global...barter could change the face of global e-commerce, particularly if regulatory and exchange-rate issues are thought through...we're coming full circle back to barter. This stuff could be the death of currency, it's mind-blowing stuff."

Olympic Barter Deal Guarantees Valuable Brand Recognition For of Costa Mesa (CA) has completed a very valuable trade with the Salt Lake City's 2002 Olympic Games. It's an exclusive deal that will give the fledgling company unparalleled exposure and build valuable brand recognition for them.

No money will change hands in the deal. Instead, the ticket retailer will provide all of the services related to ticket sales in exchange for promotional rights. The Salt Lake City Organizing Committee valued's services at $5 million to $10 million.

Experts on sports marketing say wins financially in the deal, as the promotional rights are far more valuable than the services the company will provide.

The deal marks the first time one company has been awarded the rights to sell all tickets to an Olympic event. About 800,000 tickets will be available for sale to the U.S. public beginning this fall.


Use Some of Your Trade Dollars To Assist Your Most Valued Customers

Some very successful companies, members of trade exchanges, have helped their better customers do more business, because it comes back to more business.

  • An envelope manufacturer hires copy writers to assist his clients in developing new sales campaigns. The only promise he secures from his clients is that they "test" the copy writer's ideas. The manufacturer has sold millions of additional envelopes as a result of this simple assist.

  • A printer regularly funds local advertising for several clients because he knows that the more sales they make, the more printing he will do for them.

  • A dental supply company makes available to their dentists various professional services (accounting, marketing, tax preparation, management consulting) because as the dental practices grow, they will buy more dental supplies.

Airline Currency (Frequent Flier Miles) To Grow!

AOL Gets 5% Stake For Distribution

There's already 4 trillion airlines miles in the marketplace. (At 2 cents each, that's a $40 billion private currency in circulation.) Now that will increase in a big way as America Online (AOL) is developing an online loyalty program with American Airlines.

The new program, called AOL AAdvantage, will allow members to earn points by purchasing books, compact discs and other products from AOL's merchant partners. The consumers then will be able to redeem the points online to purchase more goodies, including American Airline tickets.

Under the agreement, members of American Airlines long-standing frequent flier program (American AAdvantage) will be able to spend earned miles with AOL's merchants, as well.

Providing the underlying technology for the new company, AOL AAdvantage, is Netcentives. In addition to having a powerful new program for increasing sales online, AOL is receiving a 5% stake in Netcentives as part of a multiyear agreement.

Here & There. . .

  • A February 14 launch date is the aim of It's a site for the online trading of the billions of music CDs, movies, computer, and video games owned by consumers. According to the founders, Patrick Ford and Robert Kohler, their research shows the average consumer now owns 109 music CDs, 25 videos, and 13 computer or video games. They will be offering consumers a barter marketplace to trade their items for only the nominal cost of shipping and handling.

  • Another new barter site is working in conjunction with The site, according to E-Pawn's President Steve Bazsuly, has some 3,000 interesting items from gifts to imported clocks and paintings.

  • Sierra Trade Exchange,, specializes in Reno/Lake Tahoe tourist products...conventions and seminars, as well as real estate.

  • Malaysia is bartering palm oil to India's state-run engineering and construction firm IRCON, for the construction of a railway project in Malaysia. Palm oil is also being traded to China, for rice and corn from the China National Cereal Oils and Foodstuffs Import and Export Corporation.

  •, another barter internet site, has signed an exclusive business-to-business product sourcing agreement with Andale, an auction management company. (Andale currently is integrated with eBay, Auctions and Yahoo! Auctions.)

Under the agreement with BigVine, Andale auction sellers will now be able to list products and services on BigVine and leverage that value to obtain goods from other BigVine members. Sellers can then sell these items on other auction sites through the Andale auction management service.


We welcome your comments, questions, and observations.
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