The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
September 28, 1999
In this week's report. . .
Virgin Entertainment Exchanges $15 Million In-Store Promotion
Entrepreneur Richard Branson, owner of the Virgin Entertainment Group, has finalized a barter arrangement with Wavo Corporation, an industry leading digital media services provider, to create Virgin JamCast.
Branson's Virgin Entertainment Group will get a 25% equity stake in JamCast.com for its $15 million of in-store promotion at various Virgin mega-stores and Virgin's other online properties.
The Virgin Label, Known Worldwide, Was Built On Barter
With an estimated worth of $1.7 billion, according to London's Sunday Times, Branson has harnessed a barter strategy that's enabled him to launch a myriad of businesses with minimal investment.
He calls it "branded venture capital." Essentially, he agrees to manage a new venture and puts up the Virgin name—usually in exchange for a controlling interest—while his wealthy partners put up most of the cash.
This barter strategy has helped Branson, the 48-year-old flamboyant English showman, and Europe's best-known entrepreneur, build an empire of some 200 companies, and expand Virgin's brand name around the world.
Commercial Barter Industry Moves Up A Level
Just back from the International Reciprocal Trade Association's 20th Annual Barter Congress, held this past week in Vancouver, Canada. There, it became evident that the biggest change in the 40-year history of the trade exchange industry is now taking place.
With the infusion of Wall Street money, the industry has taken the first step toward having the ability to combine high-tech with high-touch—what trade exchange owners now provide their clients.
Major barter entities (public companies) will provide clients, of all sizes and every description, the option of bartering an immense number of products and services online, in real time.
Such trading will quickly accelerate as soon as the two diverse, distinct business models converge. Next week we will look at the implications of the new business model, and the three acquisitions made by BarterTrust.com.
Conditions In Economy Promises More Barter
Low interest rates (which mean a lower inflation rate) along with a booming U.S. economy has been especially good for the small business sector. And the larger trade exchanges can attest to this fact, as many owners exclaim, "Our clients are so busy with their cash business that they don't have the time to think about anything else. such as trading their goods and services.
Well, there's a growing concern that this could change—quite soon—according to Lawrence Lindsey, a former Federal Reserve governor and currently chief economic adviser to Republican presidential hopeful George W. Bush.
Speaking at an investment conference in New York this month, he related that America's current borrowing of $300 billion a year to finance our spending boom will soon see a growing tightness in our credit markets.
Why? Because as foreign investors' nervousness increases (about our record borrowings from them) higher interest rates could well be needed to keep their funds here. Higher rates normally mean a slower economy or recession, which in turn has historically seen an expansion of barter business.
Venture Frogs Incubator Trade Core Necessities
A new, fully-integrated office and breeding ground for early stage internet companies is located in the Marquee Historical Building at 1000 Van Ness in San Francisco.
Known as Venture Frogs Incubator, the angel investment company complements the funding efforts of Venture Frogs, LLC, in that it allows the companies they invest in to grow faster and move quicker.
Early stage startup companies can move right into a fully integrated office, equipped with computers, Internet connections, phone systems, conference rooms, reception areas, copiers, and fax machines. Startups also have access to legal, financial, and engineering consultants to help them refine their product and market strategies.
How The Internet Is Changing The Way Business is Done
Here & There...
Coming soon. . .
We welcome your comments, questions, and observations.
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