The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
October 12, 1999
In this week's report. . .
Electronic Barter Network Will Fuel World Economy
The competition for capital is going to be dramatic as the enormous needs for infrastructure development of the 3rd world (lesser developed countries) grows in the coming millennium. More barter is virtually assured as the need for trillions of dollars comes to pass. And the emerging sophistication of the commercial barter industry could well be an important adjunct in providing additional "capital" around the globe.
The use of a commonly used unit of account (trade dollar) and adequate computing power, to make sure all transactions could be settled immediately, would provide a liquidity and financing tool of unimaginative magnitude.
Today's major countertrade deals, now bilateral (one-to-one) trades, are often exceedingly tedious and difficult to finalize because of the nature of such constructive, rigid efforts. However, the rudiments of a major worldwide barter currency is developing. There are several possibilities.
The International Reciprocal Trade Association's "Universal Currency" is the most developed, and accepted by barter companies in 23 countries. With a few changes it could be expanded to incorporate other entities.
Multilateral trading possibilities, for the small business owner as well as the Fortune 500 companies are within the burgeoning commercial barter industry's grasp. The creation and development of an electronic barter economy is going to stagger even the most optimistic visionary.
A worldwide barter currency, backed by goods/services and uninhibited by borders, could become larger than any country's central bank. (The coming issue of BarterNews will expand on this staggering notion.)
VersityNet.com Launches a Virtual
VersityNet.com, a student-to-student portal, was designed to specifically serve the needs of the student community by acting as an exchange in which products and services will be offered for sale or trade.
VersityNet.com is specifically designed for students to share valuable data and information on a global basis, encompassing more than 87 countries and 35,000 universities and colleges.
Noreen Khan, CEO and president of iNetvisionz.com explained, "Services offered range from seeking campus activities, employment opportunities with major corporations, rèsumè postings, a full classified section ranging from accommodations to buying, selling and bartering of books, school supplies, and other products and services."
Fred Detwiler's Trade Exchange of
Trade Exchange of America (TEA), one of the largest independently-owned trade exchanges in the U.S., has selected Rare Medium to redesign its web site and integrate the site's web-enabling back-end systems for its members use.
Rare Medium develops internet and web-based solutions primarily for large well-known corporations, including Microsoft, The New York Times, Epson, Pfizer, Hotel Reservation Network and the Federal Reserve Bank.
Currently the member-only TEA services are handled through trade brokers, an annual membership directory, and informational mailings.
Their goal is to be a nationwide commerce system that networks companies using trade as a marketing tool in their day-to-day business. To effectively do so, they are creating a web presence that allows their members to quickly conduct business utilizing advanced technology.
The Great Trade That Fizzled!
The Venture Law Group, which helps launch startup internet companies like Yahoo, eToys, and Netcentives, receives up to 5% of a company's equity in exchange for their professional services.
Chairman Craig Johnson said they owned 1% of Yahoo, but sold the shares for $2 each...shortly before Yahoo's public offering. Now, Johnson laments, "If only we had held it!" Yahoo's market value is now $30 billion, so that 1% interest would be worth a cool $300 million!
Inventory of Media, Entertainment
There's going to be a huge amount of inventory to barter in the years ahead, according to Paul Kagan Associates. In fact, by the year 2008, less than a decade away, spending on media, entertainment and communications will rise from today's $301 billion to $1.1 trillion.
"While Americans have long been addicted to media," declared Paul Kagan, "new technology is fanning the flames of interest. Look for more TV channels, continued explosive growth of the internet, high-tech movie megaplexes with special effects, as well as more spectacular musicical and sporting events."
The combined revenues of TV to phone service, print to the internet, and movies to spectator sports, will grow on average 8.3% per year and top the trillion dollar mark by 2008.
Warpradio.Com Offers Audio Streaming
Worldwide To Radio
Radio stations worldwide can obtain a turnkey solution to the streaming of their programs on the internet...to a worldwide audience. Warpradio.com brings the world's radio programming to everyone's online PC, and the service is offered in a barter agreement exchanging the streaming services for advertising time.
Through the search portal www.warpradio.com, which lists all U.S. stations, and Microsoft's latest streaming technology, Media Player, web surfers can search, find, and listen to the stations of their choice.
From September 21st: CBS is at it again...trading $50 million in advertising and promotion for a 40% stake in privately-held Women's Consumer Network, an online membership-based consumer service targeting women.
From September 28th: U.S. Treasury Secretary Lawrence Summers revealed at the U.S.-Saudi Arabian Business Council that, "the participation of foreign businesses in American markets have been of tremendous benefit in building strong and efficient capital markets in the United States, which have, in turn, played a major role in the restructuring of the U.S. economy during the past decade."
Coming soon. . .
We welcome your comments, questions, and observations.
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