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April 25, 2006

Written by Bob Meyer, Editor of BarterNews

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From the desk of Bob Meyer...            04/25/06

Value Subjective, Not Objective...That’s Why Barter Is So Exciting!

By now millions of people have heard about the story of Kyle MacDonald, a 26-year-old fellow from Montreal (Canada) who had an internet connection and one big red paper clip. His story has been written up in virtually every North American major newspaper, as well as others around the world. Business Week and other prominent business publications have covered the news, too.

As the story goes, this young visionary dreamed of using the community power of the Internet to barter that paper clip for something better, and then trade again for something else, and so on until he had obtained a house. MacDonald is getting closer to his goal, as his trading has resulted in acquiring one year’s free rent on a house in Phoenix.

The story began last July...and the trades have gone as follows:

  • Paper clip for a fish-shaped pen.

  • Fish-shaped pen for a clay doorknob with a funny face on it.

  • Clay doorknob for a camping stove.

  • Camping stove for a generator.

  • Generator for an “instant party.”

  • Instant party for a snowmobile.

  • Snowmobile for an all-expenses-paid trip to Yahk, British Columbia.

  • Yahk trip for a panel van.

  • Van for a recording contract.

  • Recording contract for the year of free rent in Phoenix.

The latter trade was with Jody Gnant, www.jodygnant.com, who says

there is an amazing energy going on with this project. She admits the value of the rental property far exceeds that of the recording contract, but she says such calculations are of no concern to her.

But her actions say that such calculations are really only part of the equation. And her trade reinforces the fact that the true value of anything is what someone else will pay you for it. Most of us have experienced this fact—that the value placed on various goods and services depends on what it’s worth to the person who wants it.

That’s the real story here, and it’s the magic of barter. It’s also why there is enormous opportunities when one is bartering! People don’t just live off ones and zeroes. They live with their dreams, aspirations, and what is important to them. The life experience Jody Gnant will derive from this barter effort will be with her for the rest of her life, and very well could be life-altering.

Needless to say, Kyle MacDonald’s life has forever been changed. Hollywood has already called about making a movie of his story. Pretty heady stuff for a guy who was delivering pizzas and working other part-time jobs to make ends meet.

Trading takes place on many levels, as MacDonald’s amazing accomplishment has shown the world. To follow Kyle MacDonald’s venture check our http://oneredpaperclip.com.

This story reinforces what we’ve been preaching for decades...wealth is not limited to just what you have in your bank account.

Here’s A Service For Direct Trading

If you’re looking to trade personal property and believe that value is subjective not objective, you might want to check out Spud Barrett’s www.barrettexchange.com. Barrett has an exchange auction board he’s been conducting in the USA and Canada since 1978.

(Please feel free to forward our newsletter to your friends and colleagues. We have a “box” at the end of the newsletter for your convenience. See you next week. . .)


IMS Files Annual Report, Acquires More Equity Capital

International Monetary Systems (OTCBB:INLM) has filed its Form 10-KSB Annual Report for the year ending December 31, 2005. CEO Don Mardak says 2005 was a banner year for the company with five acquisitions, revenue growth of 31%, and positive cash flows from operations in excess of $678,000.

He also noted that after deducting expenses, resulting primarily from accounting adjustments and changes to comply with the S.E.C. standards and Sarbanes-Oxley rules, the firm reported a net loss for the calendar year of $221,639.

IMS processed more than $52 million in barter transactions (one side of the transaction) and generated revenues of $6.2 million, an increase over 2004 which had $37 million in barter transactions and revenues totaling $4.7 million.

The company increased the size of its outside sales force to fourteen and averaged nearly 100 new-client enrollments each month.

$1 Million Received From Praetorian Offshore Ltd.

The firm also announced the receipt of $1 million in funds which will be used to finance additional acquisitions, reduce outstanding debt, and supplement working capital.

Mardak affirmed, “We are thrilled to have earned the confidence of a firm such as Praetorian Capital. Unlike so many funding opportunities that have been presented to us, this is a pure equity investment in our company’s common stock, which demonstrates the confidence that Praetorian management has in our future.

For further information: www.internationalmonetary.com.

The Growth and Use of Secondary Capital (New Money) Creates Unprecedented Wealth In Today’s New Age Of Possibility

There are 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 75 free, informative and inspiring, articles for you in our “Secondary Capital Section.” Check it out... www.barternews.com/secondary_capital.htm.


Schacht’s ITA Goes Remote To Boost Productivity & Sales

The Illinois Trade Association, founded in 1983, is the largest independent barter company in the United States. They represent 6,000 professional clients as well as 1,000 corporate clients, such as resorts and media outlets.

With such a large client base covering the U.S. and Mexico, and a relatively small sales force of 15, ITA faced a roadblock to future growth because of unreliable remote access to its business-critical applications. (The company employs another 50 people, and its IT staff comprises two programmers.)

So to push the company’s sales toward their $100 million annual sales goal, they took action! Schacht says the problem was solved when ITA partnered with Performance Network Solutions, a Silver Citrix Solution Advisor.

Now their salespeople, when working from home a hotel or a customer site, can use their own computers or company laptops to securely access the 20 client applications that are maintained centrally. (ITA is also experimenting with extending the solution to its brokers.)

Cofounder and president Jack Schacht says the improvement is amazing. “Our remote users were losing valuable time, a half hour a day or more, due to dial-up connections. Now they can connect quickly, and don’t have to make a special trip to the office for something. This saves them time that can be spent selling.”

He continued, “We figured nearly $4,000 per person was lost yearly in productivity. And when ITA wanted to hire additional out-of-state people, there was the big question of how to provide them with access to our applications and data.”

For information on Illinois Trade Association see www.itatrade.com.


Trade Exchange Owners...
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Then it’s time to grab-a-hold of the most powerful marketing tool in the barter industry! The Competitive Edge newsletter is a monthly, ready to use, professional 4-page publication...no work is needed! (Click here.)

“IRTA U” Theme For 27th Annual International Conference In September

Executive Director Krista Vardabash and President Lois Dale are both excited about the new “IRTA U” concept, which will be the focus for the International Reciprocal Trade Association’s 27th annual convention scheduled for September 14-17, at the Island Grand Resort/TradeWinds in St. Petersburg Beach, Florida.

Vardabash and Dale exclaimed, “Just as in a true university setting, we will present a curriculum complete with speakers, classes and seminars. It will focus on instructing and inspiring current, as well as future, exchange owners on responsible and sustainable operations and growth.”

A curriculum of classes at “IRTA U” is presently available at www.irta.com.


Get New Money-Making Ideas And Valuable Contacts!

You can obtain useful, informative ideas and contacts in every available back-issue of BarterNews.


Biking Buddies Offer Mobile Interactive Billboards

In Sacramento there is a public relations guy who is obsessed with cycling. Max Mack, at age 43, rides about 450 miles a week. Recently he organized a bunch of his biking buddies into a nine member team to sell advertising space on their jerseys.

Mack is the owner of Epiphany, a small media relations firm. Because of that background, he is the front man for the group. He offers potential advertisers various-sized ads on the group’s jerseys and shorts. (The group still has ad space available on its shoes, socks and helmets.)

The ad prices range from $1,200 to $5,000 per ad annually. They don’t make a lot of money yet...but enough to buy their high-grade bike outfits, which typically run about $400 a member per year. Their small business advertisers think it’s great, as they don’t have the budget to put their name on Formula One race cars.

Mack’s living billboards zip along city streets, passing cars slowed by traffic and giving bored drivers an eyeful of striking red jerseys scripted with ads. The group’s efforts go even further. When they break at coffee shops they hand-out their clients’ discount cards to some of the customers.

Mack has greater ambitious goals...he and his middle-aged buddies want to purchase a professional racing team. He estimates they’ll need to raise about $1 million to get a team started by 2008.

Editor’s note: From billboards on bikes to targeting the eye in the sky, advertisers are finding new ways to get their message out. The latest aerial imaging services of Google Maps and Windows Live Local, for example, enable companies to create ad messages visible to satellite-based cameras.

Every barter company in the world is listed on our web site, click through to our Global List of Barter Companies.


World Travel & Tourism Council Urges U.S. To Ease Security Burdens

Going through U.S. customs can take more than an hour. And although the Department of Homeland Security is working on technology to speed up the time visitors spend going through customs and immigration screening, they still have a long way to go.

That’s why the World Travel and Tourism Council, at the sixth-annual global summit in Washington, has called on the U.S. government to make crossing its borders easier for tourists and workers.

During informal panel discussions, executives representing major travel-related companies said many travelers to the U.S. worry whether they will be greeted with a welcome or a warning. The international group, meeting for the first time in the U.S., said the government should do more to improve the travel experience here.

The U.S. is now the world leader in travel sales, but its share of the world market has been shrinking since the early 1990s amid fast-growing economies in China, India and Eastern Europe, as well as a downturn following the 9/11 terrorist attacks.

Editor’s note: Hotels, cruise lines, and tourist officials in the Caribbean, Mexico, and Canada are stepping up publicity efforts to make sure American patrons know that many of them will need passports when returning from those destinations in 2007. Only 27% of U.S. citizens have valid passports, according to the State Department.

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