Editor�s Note:
In mid-August of 2011, the most ambitious attempt was made to
ascertain the size of the trade exchange industry in the U.S. Steven
White, CEO of ITEX, likened the effort to better understand the size
of the industry to be very important � similar to that of a
Corporate Balance Sheet.
Working in conjunction with BarterNews, a member of the ITEX
corporate staff contacted each and every trade exchange on the
BarterNews website list http://barternews.com/mappage/default.htm.
The goal was to see what exchanges were still in business. If no
longer in business, the listing was deleted from the BarterNews
trade exchange listings.
An exchange was considered no longer in business if: no one answered
the phone or the phone was disconnected; their website was
non-existent or not working; and no information was found about the
exchange on
whitepages.com or on Google. After a month of effort over 100
trade exchange deletions were made.
Below, in a letter from Steven White, are the conclusions of the
trade exchange industry�s size in the United States. Given the
continual media questions about the size of the trade exchange
industry, this endeavor to ascertain a more realistic figure as well
as perspective was important. We welcome your thoughts and feedback.
April 20, 2011
Mr. Bob Meyer
BarterNews
Laguna Niguel, CA
Re: Barter Industry size
Dear Bob,
The size of the barter industry has been debated for many years and,
consequently, has created many opinions. ITEX, in partnership with
BarterNews, took on the task of trying to quantify the results for
the industry in the United States. Here was the process:
1.
Verified the map of USA barter companies at BarterNews.com was
accurate;
2.
Updated the map listings. Since 2005 both ITEX and IMS have acquired
dozens of exchanges, which consolidated more than 75 office
locations;
3.
Synchronized the map listing with NATE and IRTA membership
directories;
4.
Verified every website or business listed at BarterNews.com�s USA
map.
Next we utilized ITEX�s internal database for cash revenues, number
of members, the average size of an office and the amount of revenue
generated per member. We reviewed the public filings for IMS and
news releases of TradeBank, and then we averaged all the numbers
together to create a benchmark.
Below are our conclusions for the industry size in the United
States:
Number of barter business locations: 295
Membership: 88,577
Cash revenues: $56,511,862
Transaction volume: $680,000,000
I
understand our methodology is not an exact science, however, I hope
its gets us closer to the mark. Accuracy is the goal. We certainly
appreciate any positive feedback to further authenticate the facts
as we show them.
You may e-mail Bob Meyer at
bmeyer@barternews.com,
letting him know if ITEX can utilize any statistics you may have or
request he keep the information confidential. ITEX will only use any
industry information for the statistics and never disclose the
source without your expressed permission. We will share the
consolidated data, with BarterNews for periodic updates.
Sincerely,
Steven White
ITEX
Chief Executive Office
