In this week's report. . .
companies lessen risks through barter
association happenings from NATE and IRTA
billion exchanged in outsourcing services
$300 billion business-to-business marketplace that competes with
the barter industry
change and embracing barter
"here and there" around the world
Many Facets Continue To Reinforce The Obvious
Business Tool Enables Major
Industries To Function More Efficiently By Sharing Risks
Taking a page
from movie superstar George Lucas' book, the insurance industry provides
itself with yet another venue...and they do it by bartering catastrophe
risks among themselves.
Lucas, the genius
behind Star Wars, bartered to reduce his risks by trading a
percentage share of his profits. He bartered 1% of the profits in
Star Wars for 1% in John Milius' surfing film Big Wednesday.
Although Big Wednesday proved to be a big bust, Milius' share
of Star Wars netted him more than $500,000. Lucas, of course,
made less money on the deal...but it could have gone the other way.
are confronted with a different type of risk than a movie producer,
one that can be prohibitively expensive. Namely management of catastrophe
risks...ranging from hurricanes and earthquakes to riots and other
By forming the
Catastrophe Risk Exchange (CATEX), insurance brokerages and self-insured
entities are able to barter units of their disaster risk by region
In effect, because
insurers are increasingly being barred by regulators from dropping
lines of coverage, or from leaving unprofitable states, the industry
has embraced barter. This way they are now able to dilute risk-concentration
in one geographic area, by trading a portion of it for risks insured
against a different peril in another part of the globe.
About IRTA And NATE
Reciprocal Trade Association (IRTA)
North American chapter is going on a mission to be more interactive
with its members. Each board member was assigned specific companies
to interact with.
- IRTA is putting
out a request and proposal to vendors for the handling of the marketing
and technical support of the Universal Currency program.
member Graham Norris has requested a leave of absence until his
situation with the SEC has been cleared up.
next Global Board of Directors meeting is scheduled for February
17 and will be held in Queensland, Australia. The meeting will take
place at a luxurious resort, and will be available on a 100% trade
basis for any trade exchange owner (worldwide) who wishes to attend.
The meeting will be similar to the first-ever IRTA European Worldwide
Barter Conference held last April in Karlsruhe, Germany.
European chapter of IRTA has scheduled a meeting this spring for
their conference. It will be held in Moscow this coming May.
Association of Trade Exchanges (NATE)
- NATE's quarterly
Board of Director's meeting was held in Seattle October 22-25. Elaborate
plans were made for their upcoming NATE 2000 Convention at the Monte
Carlo in Las Vegas, scheduled for the week-end of March 2-5.
- A look at NATE's
future, as well as the upcoming convention will be reported in a NATE
cover story, which will be the BarterNews' first issue of the
new millennium, to be published in January.
- Director Chris
Haddawy, who recently sold his company to BarterTrust.com, resigned
his position on the NATE board and Alan Wolfson, owner of TradeSource
in Florida, was introduced as the new member of the board. The board
members were all impressed with Wolfson's no nonsense, forward thinking
- Jerry Howell,
NATE's president-elect is working "fast and furiously" on the next
issue of the NATE Update. He promises that it will be the best issue
ever published. Anyone who's read his creative newsletter will understand
his statement is no idle boast!
Major Firms Exchange $15 Billion
In Outsourcing Services
Systems and MCI WorldCom concluded a giant trade agreement recently.
The huge deal included trading employees, assets, and outsourcing services
valued at between $15 billion and $17 billion.
EDS will run MCI's
computer operations and manage its software development. In return MCI
will pick up EDS's global network.
Eyes Significant Market Share
Of $300 Billion Yearly Marketplace
Dove Brothers, is one of the world's leading business-to-business auctioneers
and capital asset sale advisors. Now they're the industry's first company
to offer integrated online and on-site services.
As of November,
DoveBid customers around the world will be able to acquire, or sell,
literally thousands of capital assets by participating in DoveBid's
on-site auctions, or by handling the desired transaction over the web.
"We expect DoveBid.com's
virtual exchange to facilitate the transfer of tens of millions of dollars'
worth of capital assets in 1999 alone," stated CEO Ross Dove. "These
are assets that were previously destined to sit in storage, because
the after market distribution mechanism was so inefficient."
How Do You Handle Change?
Do You Move With Initiative, Imagination & Urgency?
There's four ways
to handle change. You can cope with...adapt to...or exploit change.
Or you can actually create change on purpose. People who actively embrace
barter are on level four. Being proactive, not reactive. They trade
because it provides their company with a competitive advantage in the
- India, a nation
of one billion people, will have big business opportunities as the
number of computers and use of the internet expands. One young entrepreneur
who's getting in on the ground level is 21-year-old Manish Vij. The
MBA student borrowed 50,000 rupees ($1,152) from his father to start
kabadibazaar.com (Hindi for junk bazaar), which will promote the bartering
of second-hand goods.
- The revolution
continues as venture-capital funding reaches record heights. In the
third quarter of 1999 a record $8.6 billion was poured into start-up
companies, a 14% increase over the previous quarter. The money was
parceled out in 751 different transactions, with internet start-ups
getting $5.4 billion of the money for 442 deals. The average round
of financing jumped from $7 million to $11.5 million in that same
- U.S. Federal
Reserve Chairman, Alan Greenspan, recently noted that stocks might
be coming less risky. He reasoned that new technology has made the
management of business more stable and predictable, from shortening
production lead times to lessening the need for inventory build-ups.
Greater certainty means less risk. "Dramatic improvements in information
technology...have altered our approach to risk," he asserted. That,
in turn, may well have "permanently raised the prices of collateral
that underlies all financial assets."
soon. . .
- Los Angeles barter
economy poised for growth
- Bartering "here
and there" around the world
- Warrants bartered
for loan restructuring
- Is a web currency
- New business
and consumer web sites for trading