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October 19, 2010

Written by Bob Meyer, Editor of BarterNews

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From the desk of Bob Meyer... 10/19/2010

IMS Holiday Barter Expo�s Announced

Twelve different Holiday Barter Expo�s will be held this year by IMS Barter. The first is scheduled for Saturday, October 16, in Chicago. The final one will be staged Thursday, December 9, in Las Vegas. All shows are open to the public.

For the complete list of cities and dates click here.

BizXchange Continues On Fast Growth Track

Seattle-based BizXchange has been named to the Puget Sound Business Journal�s list of Washington�s 100 Fastest Growing Private Companies, listed at #13. It�s the fourth of six consecutive years BizXchange has been named to the list.

For more information click here.

Advertising Industry Landscape Shifting Dramatically

The larger advertising agencies are feeling the competitive heat from small-shop advertising and marketing entrepreneurs. Tightened budgets have prompted many advertisers to scale back their needs and boost their reliance on freelancers, contracted for individual projects on an as-needed basis.

New York City (NYC) Attracting World�s Powerful & Wealthy

One of the country�s leading international attorney�s, NYC-based Edward A. Mermelstein (offices in NYC and Moscow), says foreign investors are channeling funds into the American market in hopes of cashing in on �American On Sale� before the deals have dried up.

He noted the recent purchase of a NYC home for more than $44 million by Mexico�s billionaire Carlos Slim, as well as Russian billionaire (and new owner of the New Jersey Nets NBA team) Mikhail Prokhorov who has established a business base in NYC. Over the past two years Mermelstein has arranged hundreds of deals for foreign buyers.

Oakley Provides Sunglasses To Chilean Miners

The famed eyewear, and later sporting equipment, Oakley is at it again. As noted in earlier editions of the Tuesday Report, founder Jim Jannard who launched the company with $300 in 1975, routinely used barter to promote and build his company�s cach� in the marketplace. (One of his first efforts saw the company providing star athletes like Michael Jordan with a nice supply of Oakley sunglasses.)

Oakley, now owned by Luxottica, provided high-performance wrap-around sunglasses ($180-a-pair Radar Range sunglasses*) to the 33 Chilean mine workers who were being pulled to the surface on Wednesday (10-13-10), after 69 days stuck almost a half-mile underground.

* The donated Radar sunglasses with black iridium lenses, usually used for high-performance sports designed to specifically minimize ultraviolet light, were needed to avoid retina damage because of the sudden change in lighting after so much time underground.

All back issues of "From the Desk...� can be accessed by clicking here.

(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. . .)

Corporate Barter More Important Than Ever

(Editor�s note: Brian McMahon, CEO of Orion Trading, authored this article for Adweek magazine.)

Many in the industry wonder if, given the economy, barter is still relevant. My answer? More than ever. Just ask WPP and Havas, both of which recently opened internal barter units. The evolution of agencies, new technologies and media formats � as well as a de-levered corporate philosophy � will continue to sustain and expand barter for years to come.

In the past couple of years, the explosive growth in technology and social media � coupled with the global economic recession � have left agencies with a difficult task: to drive enhanced value for their clients with less money (in many cases, a lot less money). Procurement is often cited as the culprit, blamed for viewing agency services as a commodity. Peter Stringham, CEO of Young & Rubicam Brands, compared procurement-driven pitches to a �car dealer negotiating price before showing you any models.�

Barter is one of many solutions. It drives value to the client without impacting agency fees/commissions. Barter companies operate at net rates and do not charge a fee for their services � proving barter is a powerful means of sustaining ad budgets while generating significant cash flows and optimizing asset dispositions.

Forrester Research�s 2010 report �The Future of Agency Relationships� states that we are entering the �adaptive marketing era� � one driven by new technologies and media formats. This will shift advertising messaging from outbound to surround, campaigns to experiences and from segmented �audiences� to individuals.

While global ad spend forecasts differ, there�s little debate that the worst is now behind us. Magna Global, a division of Interpublic Group, predicts that media expenditures will hit $490 billion by 2015 � eclipsing 2007 levels by 20-percent. This growth will be driven by the online sector, which is expected to grow at three times the rate of all other advertising formats. New technologies in the online sector open up a multitude of opportunities for advertisers.

Barter can be a strategic solution for advertisers looking to invest in these new formats, but want to do so with limited risk. Consider Conan O�Brien�s 30-city �The Legally Prohibited From Being Funny On Television Tour� that sold out in less than three hours. The only advertising for the tour was a single tweet by O�Brien.

How should we calculate the ROI of that tweet? Simply, the millions generated from ticket sales minus the 10-cent cost of an SMS message, divided by the millions generated from ticket sales. Or is it the millions generated from ticket sales minus the SMS message plus all the branding and marketing that has gone into O�Brien over his career, divided by the millions generated from ticket sales? We contend the latter. While O�Brien's tweet triggered the ticket sales, it was his brand equity (built through traditional advertising) that made that tweet so powerful.

The point: New technologies and formats such as Twitter will continue to redefine advertising. There�s little dispute that without an integrated 360-degree approach (comprised of social, experiential, press and traditional formats) the efficacy of these emerging technologies and formats will be severely limited.

In order for barter agencies to be relevant and successful they should be full-service shops with global capabilities across all media formats. As barter continues to grow as a function of advertising, the benefits of barter will enable advertisers to efficiently invest in these emerging areas at a lower risk and without adversely affecting the advertiser�s more traditional communication strategies.

Probably the greatest lesson that corporations have learned, and continue to learn, from the recession is that debt is a risky endeavor � especially in a global marketplace.

Following the dot-com boom, between 2002 and 2007 the U.S. economy experienced tremendous growth; the S&P 500 Index grew by more than 300-percent. This growth, however, was primarily driven by an unsustainable economic platform: debt. At the time debt was cheap and readily available; this is no longer the case and won�t be for the foreseeable future.

Our industry has seen a trend where existing and potential partners are looking at barter as a driving force behind their corporate financial strategies. First, cash flows generated through barter help organizations to de-lever themselves in a faster time frame. Second, barter enables an organization to clean up its balance sheets without losses. Third, barter enables organizations to increase marketing efficiencies to drive top-line growth. All these factors help to raise credit ratings, lift market cap and strengthen brand equities.

The global economy is one of dynamism and constant evolution. Organizations consistently react, contract and grow accordingly in order to remain relevant and be leaders in their respective industries. The barter industry has evolved from interpersonal trading of goods and services into a sophisticated global exchange that enables advertisers to partly fund billions of dollars of media each year with assets other than cash.

While we are confident that all signs point to a robust future for barter, we eagerly anticipate new and unique uses of barter in the equally exciting works of media.

(McMahon can be reached at

Is Your Trade Exchange Missing Out On Valuable New Business?

If your barter company�s listing on isn�t current, you are definitely missing out on new business. The web site receives heavy traffic � with over 150,000 page-views every month. Entrepreneurs and corporate executives check the thousands of articles, the weekly �Tuesday Report,� and the �Contacts Section� of our site. They use the latter to find barter companies with which to do business.

Is your barter company�s listing up-to-date?

To keep your listing current is very easy. See the links below to (A) update any changes to your company�s listing, such as new location, phone number, web site or other information, and (B) if your company has not been listed.

Here�s how to get on board:

To make changes to your listing click here.

For new listings click here.

(The following article is a copy of Wallach�s welcoming speech to be given at IRTA�s upcoming convention later this month.)

Modern Barter Leading Way To Economic Recovery

By David Wallach, IRTA President

On behalf of the International Reciprocal Trade Association Global Board of Directors, I would like to welcome each and every one of you to the 31st Annual IRTA International Convention.

We have traveled here from all parts of the world to make a human connection with the very best and brightest people the Modern Trade and Barter industry has to offer. Industry leaders, start ups, mature exchanges, software providers, corporate barter companies, consultants, community currencies have gathered together here to share ideas, learn and develop interpersonal relationships that will last for a life time.

The theme of this year's convention �Modern Barter Leading the Way to Economic Recovery� is particularly timely and appropriate.

The current worldwide economic downturn has presented the Modern Trade and Barter Industry with a unique opportunity to demonstrate to the business community how excess business capacities and underperforming assets can be transformed into capitalization and bottom line profits.

The members of IRTA are uniquely positioned to lead the Modern Trade and Barter Industry into a new and unprecedented level of recognition and achievement. Modern trade and barter is one of the solutions towards a path of worldwide economic recovery and job creation.

Our story is being told; over the past few years the Modern Trade and Barter Industry has attracted enormous positive media attention. This attention has stirred considerable entrepreneurial interest in our industry as evidenced by the surge of start-up barter companies that we have welcomed into IRTA. Many of those start-up companies are present at this convention. Please nurture them for they represent the future of this industry.

I believe that our industry provides an economic efficiency that when fully developed will lead to a huge increase in consumption, production, and employment. This will bring the world as a whole to a higher standard of living with better nutrition, education and healthcare.

I look forward to personally meeting with you during this important and dynamic event.

For more information click here.


25 Years Of BarterNews Issues Now In Digital Format

Welcome to the largest repository of barter contacts, strategies, and barter techniques in the world. All 64 issues of BarterNews now available in digital format at

         International visitors look for BARTER CONTACTS in our Global Barter Section. If YOUR exchange isn�t listed see the forms on the lower left of the page. (Click here.)

         Attention trade exchange owners...thousands of visitors every month visit our BARTER CONTACTS section on our web site where we have names & addresses of barter companies in the USA. If YOUR exchange isn�t listed, or the information is incorrect, you can correct the situation by using the forms to the lower left of the USA map. (Click here.) 

Click here

Thought Of The Month ...

�Ideas are the currency of success. They separate you from your competition.�

�Edward De Bono

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