1982 the Internal Revenue Service filed suit in U.S. District Court
to obtain the exchange and membership records of Barter Systems,
Inc., a Lubbock (TX) affiliate of a nationwide clearinghouse for
trading goods and services.
The Dallas IRS
is specifically seeking the names and social security numbers of the
group’s members—in connection with exchanges that occurred in 1979
and 1980—for the purpose of collecting unpaid taxes.
Second Annual NATE Owners-Retreat
April 28 & 29, 2008
The future of your barter exchange
The Chateau Elan Resort & Spa, Braselton, GA (Outside of Atlanta)
The Barter Company
information & registration go to
Stimulus Package No Path To Economic Recovery
Statement of John Berlau, Director,
Center for Entrepreneurship (CEI)
President Bush signed a $168 billion economic stimulus package.
Unfortunately for long-term economic prospects, Congress has failed
to enact the more prudent fiscal policy of making permanent the 2001
and 2003 cuts in income, capital gains, and dividend tax.
It is far from
clear we are facing a recession, but we are facing an uncertainty
about the economy that is making the market nervous. And part of
what is making the market nervous is, ironically, politicians’ urge
to do “something,” anything, to save it.
Department figures released yesterday showed stronger than expected
growth in retail sales for January. There has also been some
surprisingly strong 4th quarter earnings reports from companies such
as IBM. The Federal Reserve's “Beige Book” of industry data notes
that in some sectors such as hotels, health care, consulting and
engineering, demand has actually been “robust.”
Yet there are
still things that concern the market, and many of those concerns
stem from Washington. The market is concerned about inflation and an
unstable dollar, as Bernanke has basically said that he will lower
interest rates at will. And it is concerned about the tax cuts
expiring — in 2011 by law, and possibly sooner, depending on things
like election results.
uncertainty constrains investment. And that’s why it would be so
much better to reduce this uncertainty by an action such as making
the tax cut permanent than a Keynsian temporary stimulus that has
been shown again and again to be flawed. The late Milton Friedman’s
“permanent income” hypothesis demonstrably shows that people do not
spend money from a one-time stimuli from the government — in fact if
they perceive bad times, they are likely to hoard any extra money
they get. Whether or not they spend money is related to expectations
about their future income.
That’s why he
argued that during a recession, the best thing the government could
do was raise income expectations by changing incentives through
policies such as permanent tax cuts. As he told Radio Australia in
the late 1990s, “Cut taxes in order to increase incentives, but
there is no need for the government to increase spending.”
and regulatory relief are the best cures for economic doldrums. If
the federal government is not going to do that, it should follow the
medical oath, and first do no harm.
(CEI is a
non-profit, non-partisan public policy group dedicated to the
principles of free enterprise and limited government. For more
Stunning Online Growth For Magazines & Newspapers
The top 320
magazine web sites received on average 67.5 million unique visitors
per month during the fourth quarter of 2007—an 8.1% jump from the
same period in 2006, according to data collected by Nielsen Online
and compiled by the Magazine Publishers of America. That's a faster
rate of growth than the Internet overall, where the total U.S.
online population rose 2.4% year-over-year.
mean that magazine web sites reached almost 42% of the total U.S.
online population of about 160 million in the fourth quarter, an
increase of 7.1% over last year's reach. These users generated 434.4
million visits in the fourth quarter—up 12.3%. While time spent
increased 5.5%, to an average 1.78 billion minutes per month,
implying an average visit duration of just over four minutes.
In terms of
unique visitors per month, magazine web sites bested newspapers,
where the total unique audience for newspaper sites increased 9% in
the fourth quarter to an average 62.8 million per month.
also collected by Nielsen Online, show that 39% of all active web
users visited newspaper sites during the fourth quarter, yielding
over 3 billion impressions—up 7.3% from the fourth quarter of 2006.
Frequent Flyer Miles Are Profitable...And What You Must Do To Play
Note: One of the best stories we’ve ever read on frequent flyer
miles (FFM) was written by Peter Greenberg, Travel Editor for
Today. We have reprinted it
from MSNBC.MSN.com, titled, “Why Frequent Flyer Plans Keep You
Grounded.” Greenberg says 120 million Americans have FF miles. And
there are 92 FFM programs.
active member earns 11,364 miles per year. And there are 9.7
trillion unredeemed miles in current liability among all FFM
programs. (Approximately 15 trillion FF miles have been issued, at
2-cents per mile that is a $300 billion currency.) Frequent flyer
miles are the second biggest currency in the world, after the U.S.
What does an
award cost an airline? With airlines carrying unredeemed mileage on
the books as a liability, the airlines then estimate that when they
do actually redeem miles they do so with the valuation of 40-cents
for every 1,000 miles. So, redeeming a 25,000-mile award costs the
airline about $10! (Note: With the recent rise in fuel the price
might reach $15.)
airlines, the mileage programs have become one of their few
profitable divisions—that’s right, profitable. How could that be
when airlines sell miles to thousands of marketing
partners—florists, grocers, gas stations, restaurants, banks—so that
you can “earn” those miles when you make purchases? But here’s the
rub: Since the airlines also manage and control redemption of those
miles—without any oversight, regulation or control—they build in a
And while the
airlines claim that more miles were redeemed last year than before,
the actual redemption percentage, that is, the percentage of
eligible miles that were really redeemed by the airlines last year
hovered at slightly below 10%. That’s an amazingly profitable
margin! And for consumers, that’s an amazingly painful experience.
Now that I’ve
given you all the bad news, how then do you go about redeeming your
awards and beating the airline mileage game?
argue that their members are happy with their programs and their
ability to redeem those miles. Really? Dig a little deeper and
you’ll find that what the airlines are not telling you is that the
airlines are playing a game, which they are allowed to do under
deregulation. Since these programs aren’t regulated, no airline is
required to provide any seat free of charge in these programs. This
is similar to the way airlines are allowed to advertise a discount
fare without revealing how many seats are actually available at that
And the game?
Almost all mileage programs of the major carriers get you to enroll
by strongly inferring in all of their advertisements and promotional
materials that as soon as you get to the first redemption
level—25,000 miles—you’ll be sitting on a beach with a pina colada.
reality is that airlines often double the ante. In almost all cases,
when you call to redeem those 25,000 miles for a free coach domestic
ticket, or 35,000 for a free coach ticket to Hawaii, the airline
informs you that no seats are available at that level, but the
airline magically does have your seat for double that amount—50,000
or 70,000 miles! It’s a clever but painful way for airlines to
dispose of their mileage liabilities. And that’s only if they want
to release any seats at all. So what can you do? The answer, it
seems, is be creative in a number of ways:
airports. Don’t just look for award seats to Los Angeles airport,
for example, but also to Burbank, Ontario or Long Beach as well.
routings. Don’t just think point-to-point trips or non-stop flights.
Seats might not be available on non-stop flights, so make a stop in
Chicago en route to San Francisco from Miami. (In my search for
Hawaii flights, throw out the map entirely. On one routing offered
to us to redeem our miles to Hawaii, United told me the only way
they could get me there was Los Angeles to Denver to Chicago to
And if all
else fails, then look to the airline’s mileage partners. Let’s say
you want to redeem your miles on a flight from Los Angeles to
Frankfurt on United, but there aren’t any seats available, try
flying United to Chicago and then Lufthansa to Germany (a United
mileage partner). Los Angeles to Hong Kong? If there aren’t any
seats on American Airlines, try one of its partners, Cathay Pacific
or Qantas through Sydney.
In many cases,
you may need to book as much as 320 days in advance to get those
seats. Some airlines, like Continental, offer a feature on their web
sites that allows you to check mileage seat availability up to 11
months ahead. That’s the good news. The bad news: you have the
luxury of being disappointed online!
And if all
else fails, and the reservation agent tells you there are no seats
available on any flight on any route to any nearby airport on your
primary or any partner airline, it’s time to speak to a supervisor.
Why? The key reminder here is that loyalty programs are worthless if
they don’t reward you...for your loyalty! In almost all cases,
supervisors have the discretionary power to override computer blocks
and release mileage seats.
Work With Audio/Visual
Vendor On Barter
Collect 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:
Work 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
Your hotel’s annual AV billings must be a minimum of
$200,000, and this offer is available only in the
continental United States.
For a confidential introduction contact Bob Meyer via
Attention Trade Exchange Owners:
If your 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.
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