Written by Bob Meyer, Editor of BarterNews

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Wayne Sharpe Out As Chairman Of Bartercard International, World’s Largest (70,000 Members) Trade Exchange

At Bartercard International’s Annual Shareholder’s Meeting on October 19, all of the resolutions proposed were duly passed by shareholders with the exception of resolution 4(b) in respect to the re-appointment of Wayne Sharpe as chairman of the company.

Accordingly, Sharpe has resigned as chairman and is no longer a director of the company. Christian Williams and Edward Adams, non-executive directors, have been respectively appointed Chairman and Deputy Chairman on an interim basis.

Editor’s note: As of October 3, 2005, Sharpe’s beneficial interest of 124,605,878 ordinary shares of Bartercard International represented 54.06% of the company’s issued share capital. Market cap for the firm was $45 million as of August 31, 2005.

Trade Exchange Owners...

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Bartercard International To Re-acquire Majority Interest In Bartercard USA

On September 9, 2005, Bartercard International announced that they will re-acquire a majority interest in Bartercard USA (BCUSA) for an aggregate cost of $875,000.

A newly formed subsidiary company, Bartercard America Inc. (BCA), will acquire the assets of BCUSA for a 20% stake in BCA, make a payment of $275,000 toward BCUSA’s liabilities, and provide first right of refusal on five domestic U.S. franchises to the current BCUSA owners.

As part of the transaction, Bartercard International is facilitating the sale of BCA to a U.S. listed public shell. BCA will be valued at $3 million on the reverse merger and intends to raise up to $2 million, without recourse to Bartercard International.

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International Monetary Systems’ Exceptional Growth Continues

International Monetary Systems (OTCBB:INLM) announced the processing of $4.7 million in sales for the month of September, 2005. Revenue produced was $563,000, which represented an increase of 45% over the same period the year prior.

IMS President and CEO Don Mardak reported, “This is the fifth consecutive month in which our company has shown explosive revenue growth over comparable periods in 2004. During that time we have had increases of 53% in May, 48% in June, 37% in July, 54% in August, and now 45% in September. Once again, this validates our industry roll-up strategy and demonstrates our success in enrolling new members into (Continental Trade Exchange) our cashless trade network.”

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Businesses Barter To Solve Array Of Problems

If a company experiences a marketing snafu, or a logo change prevents a perfectly decent product from being sold through the normal channels of distribution, the affected assets can be saved through a creative barter deal.

Such was the case after the catastrophic December 2004 tsunami, when a pharmaceutical company had 48 million prescription paid-relief and anti-inflammatory pills on hand. The drug company had bought pills manufactured by another company that doctors commonly prescribed along with theirs. The idea was to sell both drugs in tandem under a new name. (But physicians persisted in prescribing the drugs as they previously had, not remembering the new product’s name.)

A Connecticut-based corporate barter company was called upon to brainstorm, and came up with a solution: They paid the pharmaceutical company $7.5 million in cash for the medicine. (The pharmaceutical company had other options rather than the sale: they could have destroyed the medicine, sold it to another company for remarketing, or donated it.)

The barter company did in fact donate it, to AmeriCares, a charitable organization that supplies humanitarian aid and disaster relief, which used the medicine in the Pacific Rim as part of its relief efforts after the tsunami. (At the barter company’s request, the Food and Drug Administration certified the drugs’ viability in a letter to AmeriCares.)

The pharmaceutical company, besides receiving the cash, was able to take credit for the donation. And the barter company received a charitable tax deduction for its cash purchase of the medicine.

Why did the corporate barter company lay out $7.5 million to the pharmaceutical company for the supplies? Because the pharmaceutical company committed to buy $52 million of media advertising through them over the next three years. (The ads would be purchased in any event by the pharmaceutical company, so it made sense to move the problem inventory as described.)

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

Time-Share King’s Wife Partners With Longtime Publishing Executive

Orlando Travelhost magazine, 20-years-old in 2006, has been acquired by J&S Multimedia, a formed partnership between Susan Ortega and Jacqueline Siegel.

Ortega reportedly had been thinking about the move for eight of her twenty years with the magazine. She became more serious when former owner Bob Kazaros recently sold the magazine to devote more time to his real estate endeavors.

Jacqueline Siegel has a degree in computer engineering and has worked with the Central Florida Hotel & Lodging Association. She is the wife of CFI/Westgate founder David Siegel. CFI (Central Florida Investments), also owns a publication...called I Love Florida.

Orlando Travelhost averages 70 pages and is distributed in more than 100 hotels in the area, its content is 70% to 80% advertising. By using Siegel’s community contacts, the pair say they plan to add advertisers and improve local and industry awareness of the publication.

Travelhost is based in Dallas, and publishes localized editions that are primarily distributed through hotels by its franchisees who are busy selling and bartering space in the publication with retailers, restaurants, and service companies within their franchise area.

Small Ad Agencies Turning To Revenue-Sharing & Barter Deals

In an advertising landscape dominated by giants, little guys have to take a different tack to make their mark. One such independent marketing and advertising agency, Anomaly, is an example. The New York firm teamed up with the Michigan State Lottery to help sell the space on the back of lottery tickets to advertisers. But instead of being paid the usual fee, Anomaly will share in 10% of the revenue generated by ad sales.

In a new twist, agencies increasingly are willing to accept payment in the form of an interest in how a product does...instead of the fees they normally charge.

Some agencies are even going a step beyond by taking equity in the client’s company as payment. That’s what Brooklyn Brothers agreed to do this year when working for a doctor who designed a new pill. The New York based agency will have an equity stake in the product in exchange for their creative efforts.

Bigger ad agencies followed a similar strategy during the dot-com boom several years ago, often taking stock as a form of payment. Unfortunately, many ended up losing on such trades when the dot-com stocks crashed. As in all trading endeavors, each party must realistically look at the potential risks and rewards of such transactions.

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Here & There...

• Asia will increasingly compete with Europe for vacationers as the global tourism industry is set to double to 1.6 billion tourists by 2020, according to the European Commission, the European Union’s executive arm. The main reason given was Asia is increasingly offering hotels and other facilities of better quality. Tourism provides employment for seven million Europeans, accounting for 5% of the EU’s economic output.

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