This section provides an
in-depth look at all the Trade Exchange News of 2006.
(Trade Exchanges are also known as Barter Companies.)
IRTA Sends Formal Invitation To NATE For
Unified 2007 Conference
The commercial barter industry has had two parallel trade
associations for the past twenty-two years. Much has changed
within the industry over the years. Not only have many of
the players (exchange owners) changed, but the agendas of
decades ago are no longer applicable.
Given the aforementioned, along with some new challenges the
industry�s two associations are facing, the International
Reciprocal Trade Association (IRTA) Board of Directors sent
a formal proposal to the National Association of Trade
Exchanges (NATE) Board of Directors on October 16, 2006,
suggesting that the two organizations stage a unified annual
IRTA�s Executive Director recently sent the following
statement to BarterNews:
�The IRTA felt that in the current environment of exchange
consolidation in the U.S. and with fictitious associations
claiming to represent the industry (i.e. NABA), it was
critical to join forces.
�The strongest and most reputable exchanges have supported
either IRTA or NATE over the last 25+ years. These are the
exchanges that should continue to lead and leverage the
strengths of each other.
�We understand that the NATE board will be considering this
proposal at their next board meeting, and we hope to report
soon that there will indeed be a joint conference for both
owners and brokers in 2007.�
It Was A Great Year For ITEX
The fiscal year for ITEX Corporation
(OTCBB:ITEX), the largest trade exchange in North America with a
22,000 membership base, ended July 31, 2006, with the company
announcing some very impressive figures:
� Income from operations increased 84% to
� Operational cash flow was up 118% to
� Revenue increased 43% to $14,657,000.
� Total net income was $3,433,000, up 2-cents
to 18-cents a share (diluted).
� Liabilities decreased 35% to $2,695,000.
� Assets increased to $10,663,000 compared to
$9,125,000 in 2005.
� More than $300,000,000 in ITEX dollar
transactions were completed by processing approximately 300,000
Steven White, Chairman and CEO, noted, �Our
strong cash flow allowed us to repurchase 1,050,000 shares of ITEX
stock in fiscal 2006, and to prepay a significant portion of the
debt associated with the acquisition of BXI.� (Subsequent to the
July 2006 fiscal year end, ITEX retired all BXI-related debt, as
announced on October 5, 2006.)
For more information on the ITEX
Corporation�s report on Form 10-KSB, see:
IMS Gobbles Up Nation�s Largest
Independent Trade Exchange...Schacht & Varner�s NTA/ITA
In 2003, a BarterNews cover story (issue #61) was
titled, �IMS Quietly and Methodically Is Building A Barter
The story began, �Don Mardak�s gentlemanly, at times reserved
demeanor masks a competitive zeal and a will to win that is second
to none in the commercial barter industry.� (Click here to read
National Trade Association (NTA) and it�s
subsidiary, Illinois Trade Association (ITA), in business since 1983
and the largest independent trade exchange in America, is joining
forces with International Monetary Systems (OTCBB:INLM). IMS Barter
will now possess a huge client base of 15,000 quality member
businesses and over 22,000 cardholders.
Don Mardak, CEO of IMS, was ecstatic, �This
merger of America�s two leading trade exchanges adds a whole new
dimension to our company. NTA/ITA owners Jack Schacht and Joan
Varner are two of the most respected people in the barter industry.
�Their visionary leadership over the years has
set new standards for all of us and has established a level of
excellence that few have been able to emulate. We couldn�t be more
pleased than to be associated with these two outstanding people.
Both will work with us during the transition and will continue to
share their wisdom with us in the future.
�From our perspective, NTA/ITA is the �Jewel in
the Crown� among our acquired trade exchanges. This transition will
have a greater impact on our revenue and trade volume than any
others have had in the past.�
Mardak also emphasized that in the acquisition
he would be utilizing the personnel of NTA�s National Trade
Division, which provides IMS Barter with an instant entree into the
world of corporate barter, where larger transactions are consummated
between manufacturers, major hotel chains, airlines and national
For more information on IMS:
Additional details regarding the
merger can be seen in the form 8-K filed by International Monetary
International Monetary Systems Second
In the second quarter ending June 30, IMS
Barter processed more than 14 million in trade transactions,
generating gross revenues of $1,810,654, compared to $1,596.594 in
the second quarter of 2005.
Total expenses for the quarter increased 23%
from $1,398,551 in 2005 to $1,722,046 in 2006, attributable to the
recent acquisitions and the hiring of new salespeople.
Year-to-date gross revenue for the six-months
ending June 30 totaled $3,552,990, compared to $2,738,976 for the
same period in 2005...an increase of 30%. Total expenses for the
same six-month period were $3,435,649 in 2006, compared to
$2,531,812 for 2005...an increase of 36%. Total year-to-date net
loss for the first six months of 2006 was $68,597, compared to a
profit of $96,558 for that period in 2005.
For more information on IMS go to
Australia�s BBX Move Into Wine
In our June 13 issue we reported on Business
Barter Exchange (BBX) expanding into the trading of wine, with a
goal of moving $5 million the first year. Given the current
conditions of Australia�s wine industry they may blow right past
Many of Australia�s 2,000 wineries and 8,000
grape growers are facing a French-like crisis: There are too many
grapes chasing too few palates. The surplus is estimated as high as
900 million liters...large enough to serve every man, woman and
child in the world a glass on the house.
Wineries aren�t cheering, because the huge
surplus is shredding prices for bulk and other low-end wines.
Growers in the main wine regions � the Riverina in New South Wales,
and Riverland � are being offered as little as $75 a ton, well below
the $225 it cost them to produce the fruit.
In 1993 the wine industry convinced the
Australian government (in Canberra) to change depreciation rules, so
growers could write off the cost of buying and planting vines over
just four years...rather than over the lifetime of the vines, as
with other agricultural assets.
From 1997 through 1999 growers planted 100,000
additional acres, a 40% increase in only three years. Now the
industry is pleading again for government aid, asking for a $45
million bailout that would pay growers not to pick 300,000 tons of
grapes in each of the next two years. Not a chance, Aussie officials
have said, adamant that market forces should decide which vineyards
Michael Touma, Managing Director of BBX, (and
presumably other barter companies as well) should have their phone
ringing off the hook, given the conditions of the vintners. Touma
may well have some very interesting proposals in hand at the
upcoming IRTA convention, for his fellow traders from around the
A lot of people are very familiar
with Australian wines. Especially given the fact that Australia�s
finest wines have snatched trophies away from the French in
international competitions, and wine exports have swelled from $305
million in 1995 to $2.1 billion last year.
Seller Teams Up With Bartercard
eBay seller XS Items, is offering three of its pilot franchise
opportunities at �15,000 through the UK Bartercard network. Thus,
members of Bartercard can purchase a franchise on full trade.
XS Items takes
any goods that can be sold on eBay, and provides a complete service
for individuals and businesses in exchange for a percentage of the
final selling price.
150 franchised offices in 17 countries worldwide, and more than
4,000 members in the UK. For more information on Bartercard go to
Limited Sells Thailand/Vietnam Ozone Franchise License
Corner (SLC),a publicly traded Thailand company, has acquired an
exclusive Ozone franchise license for Thailand and Vietnam from XO
Limited. SLC has set up subsidiary OpenServe to operate the new
barter exchange operation under the Ozone name.
reported that the initial license fee was $1 million, and further
payments -- if the deal goes as planned -- will total approximately
$5 million over a 5-year period, based on forecasts of member
trading volumes. (Shares of Solution Corner are trading for
approximately 9-cents each.)
Sam Rama, CEO of Ozone Barter, the transaction represents a major
opportunity for participants in the New Zealand-based Ozone Barter
network to sell and acquire products from the Asian market.
Corner, a Thailand software developer, has diversified into
e-commerce in an attempt to reduce the risk of relying only on the
software development business.
Munchupha, the managing director of SLC and Open Serve, is aiming to
have at least 1,200 members based in Thailand, trading 30 million
baht (37:1 to the US$) by the end of this year.
XO Limited (www.barter-software.com)
was founded in 2002 and offers a neutral internet-based platform
which enables multi-lateral trading.
has franchisees in Australia, New Zealand, Singapore and South
Africa with a reported network of 10,000 members.
Bartercard Stages World�s
Largest Trade Show $4
Million Traded In 7 Hours
company�s 15th anniversary, Bartercard Australia staged the world�s
largest trade show on June 18 in Queensland.
twenty-six (326) exhibitors from Australia, Thailand, and the UK
sold holidays (vacation packages), wine, golf equipment, cosmetics,
and a variety of other goods and services in the 7-hour event.
Managing Director Andrew Federowsky said over 3,000 people attended.
�For the first time ever we opened the door to non-members, and
provided them the opportunity to see exactly what exciting business
opportunities Bartercard had to offer.�
celebrated the 15-year milestone by giving away 15 exciting prizes
over a 15 week period. Door prizes at the trade show included a
plasma TV, LCD, Quad bike and an in-car entertainment system.
largest barter company also supported the local community by
donating $1 trade dollar for every transaction which occurred at the
trade show (over 6,000). The trade dollars were donated to the
Queensland Spina Bifida Association.
Bartercard operates in 16 countries around the world, has 75,000
members and does $3 billion in cashless transactions (sales &
purchases) per annum. For more information visit:
Announces Keynote Speaker
International Reciprocal Trade Association announced that Tom Greco
Jr., author of MONEY: Understanding and Creating Alternatives to
Legal Tender will be the keynote speaker at their international
barter conference, September 14th to the 17th at the TradeWinds
Island Grand resort in St. Petersburg Beach, Florida.
Greco is an
economist, educator, writer, researcher, and consultant, who, for
more than 20 years, has been working at the leading edge of
transformational restructuring. Besides his frequent presentations
and interviews, he has served as an advisor on the creation of
includes community economic development, monetary theory, community
currencies and cashless exchange systems, computer applications,
information and educational technologies, statistics, and survey
presentation will highlight and follow-up on the concept of an
international trade credit currency that was initially proposed by
IRTA�s former executive director, Paul Suplizio, and revisited in a
video address to attendees at the 2004 conference.
thrilled about gaining Tom Greco�s commitment to speak and
participate in our conference this year,� Krista Vardabash, IRTA
Executive Director, emphasized. �I met with Tom back in 2001 and we
discussed the importance of barter exchanges understanding the
critical and important role they play in providing alternatives to
legal tender. We are excited to have the opportunity to present
these thoughts and principles to IRTA conference attendees.�
�This is a
great add-on to the speaker IRTA presented last year, Bernard
Lietaer, who spoke about the importance of collaborative efforts of
international networks such as the one that IRTA promotes,� noted
Richard Logie, IRTA Global Board Member.
information, please contact Krista Vardabash at
email@example.com, or call (585)
TeleTrade International Transactions Up 19%
Lasater reports that TTi�s international service center for
independent trade exchanges increased 19% for the first half of
2006, compared to the same period in 2005. Combined transactional
volume for the exchanges within the
system was $54,120,439. (The volume increase totaled $4.7 million.)
its eValues internet technology in 1999, aggregate trading activity
for all sites totals $399,207,522.
For further information on the eValues system which is designed for
independent trade exchanges, contact Gary Lasater at 303-840-7172
ext. 1, or e-mail:
firstname.lastname@example.org. Or online, visit:
IMS Barter Creates Broker
Division For Entrepreneurs
At the company�s recent annual meeting, it was
announced that IMS Barter desired to expand and grow the company
organically. Most industry insiders believed such an announcement
meant the company would be looking for additional sales personnel to
hit the streets for new member solicitations and sign-ups.
But IMS CEO Don Mardak had a surprise for the
industry when he announced on July 5, �In addition to hiring sales
people who will help us expand our existing markets, we have created
an Independent Broker Licensing Division.�
IMS Barter, now located in 37 U.S. markets, is
actively looking for entrepreneurial-minded individuals who are
interested in building an IMS Barter office in their local markets.
With the announcement Mardak also revealed that the first licensee
will soon begin operations in Naples and Ft. Myers, Florida.
For additional information on IMS go
Selects New Orleans For National Convention
Corporation (OTCBB:ITEX) once again has shown support for the
beleaguered city of New Orleans, by announcing its 25th Annual
Convention will be held May 20 through May 24 at the Doubletree
Hotel New Orleans next year. The convention�s theme for 2007 will be
�Lead the Way.�
As reported in
past issues, ITEX members donated $700,000 ITEX dollars to support
the Katrina relief efforts through non-profit clients Feed the
Children and Mission Harvest. The convention is expected to
contribute another $200,000 to the area�s economy during the 5�day
is pleased to offer further support as an organization to the city
of New Orleans,� CEO Steven White affirmed. He added that for the
first time ITEX will invite both supporters and potential
franchisees to pre-convention events and the first day keynote
information on ITEX, North America�s largest trade organization see
Bartercard Expands UK Growth With Move Into Ireland
In 1991 Bartercard opened a single
office in Queensland�s Gold Coast, Australia. Today the company
which operates 120 offices worldwide in 17 countries announced the
license for Ireland has been sold for EU550,000 or US$690,000.
Operations will begin in early 2007.
It�s already been quite an
eventful year for Bartercard. CEO Wayne Sharpe explained, �The sale
of the Irish license, following the recent license sales of Saudi
Arabia and Syria, is a fantastic result, given that we are still in
the first quarter of the current financial year.�
Ireland is expected to become a
natural trading partner for members of Bartercard�s UK operation,
(Much like Bartercard�s New Zealand and Australia operations are
trading partners.) Additionally, Sharpe believes that Ireland can be
a valuable stepping stone into Continental Europe, due to its
participation in the euro currency.
Turkey Provides Assist In Building European Awareness
Bartercard International Managing
Director Andrew Federowsky says the company�s operations in Turkey,
which commenced in March, 2006, are extremely important to the
company and will also provide a bridge for the company�s further
expansion into Europe as well as the Middle East.
The head office for the Turkey
operation is located in Izmir which is very close to Greece.
Managing Director of Bartercard Turkey, Mose Elis, says the building
of brand awareness in Europe will be a natural because, �we have so
many connections to Europe through trade and tourism.�
For more information on the world�s largest trade
exchange go to
Bartercard�s Man In New Zealand, CFO Michael Parsons, Doing Bang-Up
Bartercard, the world�s largest
trade exchange now doing an estimated $1.2 billion annually,
operates in 14 countries around the world. One of their early
expansions occurred in New Zealand, when founding director Kerry
Gordon stepped off a plane from Australia in 1992.
Under his arm was Bartercard New
Zealand in a shoebox of files and four floppy discs. The following
year, Bartercard New Zealand Ltd. was established as an independent
In 1997, the Australian
shareholders purchased the company back. Then in 2001, Tony
Falkenstein�s Red Eagle Corporation acquired 90% of the New Zealand
operation, with the remaining 10% held by Bartercard International.
Last year Bartercard New Zealand
turned over $185 million in barter transactions, involving 5,500
businesses countrywide. Such figures show that Chief Operating
Officer, 32-year-old former Wall Street trader and expatriate
Canadian, Michael Parsons is doing an exceptional job.
But according to Parsons, more can
be done. �One of our biggest challenges, if not the major hurdle, is
the fact that explaining the Bartercard concept isn�t done in five
minutes. We need the time to sit down and talk to business owners,
to help them really understand how Bartercard can work best within
Parsons says his goal is to have
every business owner realize and understand that a structured barter
system is a profitable and valuable option for their business. Case
in point, is the immensely varied services offered through the
540-page Bartercard Directory, which include individual trade
listings as well a display advertising.
One growing area is property
exchanges, as Baby Boomers are beginning to plan for retirement.
More than $50 million in real estate sales have taken place among
New Zealand members, with over $15 million of that figure being paid
in Bartercard trade dollars. Currently there are 79 properties
Overseas travel is another area where Bartercard excels. From their
travel desk in Tauranga, they moved over $600,000 last year. The
main destinations were Australia, Rarotonga, Fiji, Thailand, Britain
and Hong Kong.
Entertainment services available
through Bartercard New Zealand range from accommodations at boutique
B&B�s, to five-star international hotels, car and limousine rentals,
restaurants and bars, as well as a host of other leisure activities.
For more information:
BBX Expands Into Another Major
Few things in this world are as succinctly simple yet
delightfully complex as wine�or as old.
The act of pouring a glass of wine, inhaling the
bouquet, sipping the elixir, and savoring the taste is a satisfying
and hedonistic treat that has captivated mankind since the dawn of
Business Barter Exchange (BBX), one of Australia�s
largest barter companies, is expecting wine trading to become a
significant new income stream for the company. Michael Touma,
Managing Director, says they are establishing a wine fund to expand
trading among their members nationwide, as well as exporting wine to
BBX franchisees elsewhere around the world.
BBX expects to provide a minimum of $5 million, and
possibly up to $10 million, in premium wine inventory to its members
on a full-trade basis in the coming year.
Editor�s note: In our April 4 Tuesday
Report, we related BBX�s formation of a real estate fund for
property acquisitions that would be used to acquire desirable real
estate in Australia and New Zealand. (Click
here to read more.)
IMS Announces April Revenue Increase
International Monetary Systems (OTCBB:INLM)
has announced that its April revenue totaled $570,000, an increase
of 35% over April 2005.
The company also has purchased the
assets of Indianapolis-based Barter Indiana Group. The acquisition
will add 200 members to the IMS client roster now numbering 10,000
in 36 U.S. markets.
For more information see:
ITEX Has Explosive Quarter...Both
Its Income And Revenue
ITEX Corporation (OTCBB:ITEX) has
reported its results for the third quarter of fiscal year 2006,
ending April 30, 2006. The firm, a leading marketplace for cashless
business transactions, processes more than $250 million a year
through 22,000 member businesses, managed by 95 franchisees and
CEO Steven White was enthusiastic,
stating, �We continue strong growth in revenue and income from
operations as a result of the rapid and successful integration of
(the BXI trade exchange). We will continue to explore opportunities
to grow revenue at a faster rate.�
Third Quarter 2006 Highlights
quarter income from operations was $437,000, compared to
$150,000 for the previous third quarter in 2005...an increase of
Operating income for the
nine-month period ending April 30, 2006, was $1,100,000,
compared to the previous $609,000 in 2005...an increase of 81%.
Third quarter revenue was
$3,419,000, compared to $2,345,000 in the same period the
previous year...an increase of 46%.
Revenue for the nine-month
period ending April 30, 2006, was $11,169,000, compared to the
previous $7,508,000 in 2005...an increase of 49%.
Operational cash flow
increased 96% from $914,000 to $1,790,000 in the nine-month
period ending April 30, 2005 and 2006, respectively.
Processed 73,000 transactions,
totaling more than $54,000,000 in ITEX-dollars.
Common stock - 300,000 shares
were repurchased for $165,000 and outstanding shares totaled
18,406,132. There are no outstanding options or warrants.
Corporation�s report on Form 10-QSB can be found at
For more information on ITEX see:
TeleTrade International Announces 23% Trade Volume Growth
International (TTi) has announced that trade volume through its
online systems (www.eValues.net)
saw a 23% growth, posting $5.9 million in May 2006, compared to $4.8
million for the same month in 2005.
For the first
4 months of the year total trade from
$46, 653,447. Trade activity is ahead of last year�s pace by $4.6
million. Gary Lasater, CEO of TTi, says aggregate activity since
1999 when the firm took its technology online now exceeds $391
system is designed for independent trade exchanges, allowing members
and exchange personnel expanded opportunities for trading with 24/7
online access, daily trade opportunity broadcast e-mails, a strong
trade inventory control system, as well as a comprehensive contact
management and accounting system.
For further information contact Gary Lasater at
The Motley Fool
Newsletter Looks At Barter
article by David Kuo appeared on The Motley Fool web site
on May 17. Wayne Sharpe, CEO and co-founder of Bartercard (LSE:BRTR),
covered a subject that�s often incorrectly used interchangeably in
newspaper and magazine articles�the difference in the meaning of the
words bartering and haggling.
contends that it is an unfortunate mix-up, because it gives
bartering a bad (and an inappropriate) image. Sharpe explained,
�When you haggle, you are trying to pay less than the asking price
for what you want.
when you submit an offer below the asking price, you are inviting
the owner to haggle or negotiate with you. But when you barter you
are paying the full ticket price for the particular goods and
services being sold.
method of payment is different. Instead of forking over cash for the
purchase, you are offering something of equivalent value in
out to the writer that when bartering, businesses can effectively
get what they need at a discount that is equivalent to their gross
given in the article to further make the point. Overall, one of the
more articulate articles on understanding barter�s inherent value
and the use of trade dollars when trading.
Completes Largest Convention Ever
White is grinning from ear to ear after concluding the largest
national convention ever staged for the ITEX Corporation (OTCBB:ITEX).
The event was held in Las Vegas at the Excalibur, and according to
White, �our attendance was almost double the annual conventions of
the industry�s two trade associations.�
Team� was this year�s theme, focusing on the power of the
network�the company�s 95 locations.
significant, from corporate�s perspective, was this year�s
convention signifying the end of free conversion for existing
brokers to franchises...with 60 offices completing or agreeing to a
franchise agreement. (New conversions will be subject to standard
franchise initiation fees.)
At the formal
awards dinner, Linda Rubendall was the recipient of the Brokers
Choice Award, Hal Henry carried off the Jule Gulley Award, and Jim
and Carolyn Young (Tampa, Florida) received the coveted Franchise of
the Year Award.
information on the 22,000-member barter company go to:
Revenues Up 53%, Operating Profits Advance 144%
International Monetary Systems (OTCBB:INLM) announced
that the quarter which ended March 31, 2006, had a $1,742,338 gross
revenue, a 53% increase compared to $1,142,383 for the first quarter
In the first quarter of 2006, the Continental Trade
Exchange (CTE) barter business had a profit of $77,000, compared to
$31,600 in the same period of 2005, an increase of $45,400 or 144%.
CTE processed $12,109,943 in barter transactions (representing sales
only), an increase of 47% over the first quarter of 2005.
(The figures for the first quarter of 2005 do not
include the revenues and expenses of the five companies acquired
after March 31, 2005, which increased the IMS client base over 45%.)
To read the
full report, refer to the Form 10-QSB that has been filed with the
U.S. Securities and Exchange Commission at
Investrend Research Raises IMS
service IMS is enrolled in, Investrend Research, which provides
analysts to smaller publicly-traded companies that otherwise have
little or no analyst coverage, has raised the company�s target
valuation from $0.80 to $1.60.
analysts are paid in advance of initial reports, and neither the
analyst nor anyone associated with Investrend Research may own or
have trade in the stocks of a company under coverage.
Florida Barter�s Bingman Crowned Broker Of The Year
Joyce Bingman, a Certified Trade Broker and travel broker for
Florida Barter in Winter Park, has been named the National
Association of Trade Exchanges� 2006 Broker of the Year. She will be
honored during an awards banquet in conjunction with NATE�s annual
convention, to be held in Toronto August 10-12.
�It is such a humbling honor to be recognized by one's peers,�
Bingman expressed. �An award such as this makes the exacting clients
and challenging days seem insignificant. Working for Florida Barter,
and having (founder) Scott Whitmer as my mentor, has definitely
given me the edge in learning strong leadership, fair business
ethics, and the knowledge of bartering.�
Bingman, who has been with Florida Barter for nearly 12 years,
manages the travel department and handles all of the reciprocal
trading business. During her tenure there, the travel department has
regularly produced yearly record growth. Her presence has been
instrumental in helping the trade exchange consistently rank as a
top producer in the barter industry.
�Travel is not necessarily the most profitable side of bartering.
However, it spreads the most enjoyment and goodwill while building
memorable moments with clients,� Bingman said. �We travel brokers
have all the best.�
Announces New Verifiable Logo Program
An industry goal of creating greater credibility and
transparency has led the International Reciprocal Trade Association
(IRTA) to create a verifiable logo. Members in good standing can
easily place IRTA�s interactive logo on their web-site.
When a visitor to the site moves their mouse/cursor
over the IRTA logo, a 5-second glimpse will appear of the
certificate that verifies the exchange is an IRTA member in good
standing. The visitor also has the option of clicking on the logo,
which links to IRTA�s web-site, to find out why it�s important for a
barter company to be an IRTA member.
For an example of
how it will look and function, visit:
Mardak Enthused With Hedge Fund Equity Investment
Don Mardak, International Monetary Systems� CEO, is
smiling these days as he�s received an additional $3 million in
working capital from Praetorian Offshore Ltd. It is the hedge
company�s second investment in IMS...bringing the total to $4
Under terms of the agreement, Praetorian acquired 7.5
million shares of IMS common stock at $0.4285 per share and received
warrants to purchase an additional 3.5 million shares at $0.55.
Mardak says the money will allow the firm to execute
current expansion plans and streamline its operations. For more
information on IMS go to
On Thursday May 11, the BarterNews cover story (in issue #61)
on International Monetary Systems was downloaded from our web site
45 times. The PDF file is in our Trade Exchange Section, found under
Barter Categories on the navigational bar.
News From Universal Currency
According to UC
facilitator Jennifer Ashworth, the Universal Currency is focused on
adding additional value and thus will soon be launching a new system
called GETS (Global Exchange Trading System). She also reported that
UC�s three top traders in April were BizXchange, Northwest Barter
Brokers, and Advantis International. For more information on the
Universal Currency system visit
Exciting Trip Of A Lifetime Accomplished Through Barter
which is located in Seattle and Oakland, reports that one of their
members recently completed an extensive 45-day tour of Australia and
New Zealand on trade. Such an accomplishment was achieved through a
cooperative effort with Bartercard International. Compensation was
provided to Bartercard through IRTA�s Universal Currency (UC)
broker Nathan Sutherland was complimentary, saying, �Jennifer
Ashworth of the UC did an outstanding job in putting together such a
detailed and ambitious itinerary. In turn, Bartercard made
themselves very accessible and were in constant contact with our
client...helping him work out the smallest details of his trip.�
TeleTrade International Hits New Benchmark
CEO of TeleTrade International, announced that his international
service for independent trade exchanges processed $38,133,737 for
the first four months of 2006, up 23% over the same period in 2005.
the growth of the eValues system (www.eValues.net)
is a result of expanded access for customers, tracking services, and
strong inventory control in addition to central accounting
The firm has
enhanced the telephone authorization system to include caller ID
recognition, eliminating members� need to enter account numbers to
begin the process. Additionally, the system recognizes the exchange
by greeting the members with a personalized salutation.
information on eValues and TeleTrade International contact Gary
Lasater by phone (303) 840-7172 ext. 1, or e-mail
Heads National Trade Banc
Roy Flis, 63,
has been in the barter business since 1980 when he founded Empire
Barter in New York. Along the way, he has become co-founder and CEO
of National Trade Banc (NTB) headquartered in Houston. The
Texas-based firm is a wholly owned subsidiary of privately-held
Over the last
year NTB has acquired BarterOne, Butcher Trade Exchange, Cinnabar
Media Services, North Texas Barter, Houston Barter Exchange and
Barter Bay. One of NTB�s innovations is implementing all trading
through brokers at the headquarters trade floor.
is provided by Barter Center International and trades through the
BCI network, which reportedly has 50,000 participants and $100
million in goods and services available daily.
information on National Trade Banc see
Steve Singer Leaves Barter Industry, Buys Budpak Inc.
For 25 years Steven Singer worked with National
Commerce Exchange in Jericho (NY). He recently informed
BarterNews that he has left the barter industry because an old
friend (whom he�d helped 7 years ago) made him an offer he couldn�t
It began when Singer helped his friend, Bud Pion,
start a business after an account had stuck Pion with 500,000
one-ounce plastic tubes. Pion sent the tubes to a company on Long
Island which filled them with a first aid cream. Singer helped
secure the package design for the tubes on trade, and the cream was
then sold to dollar stores.
That item was so successful that several other
products were added�Anti Itch Cream, Antifungal Cream, Cocoa Butter
Cream, and an A&D cream. The firm, Budpak, now buys a million tubes
at a time from Brazil, and sells the line nationally through a
network of representatives.
Pion�s success was even more impressive, since at the
time he started the company (after fifty years in the packaging
business) he was 80 years old. Now 87, he wants to take it a little
easier. Since Singer had been helping him with marketing and
financial advice since the beginning, Singer was provided with an
opportunity to acquire the company in an arrangement he couldn�t
He is now busy using his trade dollars to build a web
site and update the computer system. Singer looks to manufacture the
line in India or China, with plans to visit either country before
He looks forward to
doing some barter transactions with many of his friends in the
industry. To contact Steven Singer of Budpak, e-mail him at
Persistence Paying Off For Mardak
International Monetary Systems (OTCBB:INLM) CEO Don
Mardak has been making regular appearances at various investment
conferences, spreading the word about IMS to the investment
His most recent appearance was at the Financial
Services Exchange (FSX) Investment Conference in Miami (FL) this
past weekend. Mardak made two presentations to broker-dealer
decision makers, and spent three days networking with high-profile
Mardak noted that the FSX conference series have been
ongoing for 23 years, and the events have resulted in raising over
$1.4 billion for presenting companies.
�During the past several months, we have had great
success in presenting our company�s story to the investment
community,� Mardak divulged. �This has resulted in a recent 50%
increase in our share price, as well as a substantial investment in
IMS shares by a professional fund.�
Last week IMS reported that its March revenue totaled
$564,000, an increase of 42% over March 2005.
For more information
on IMS see
�IRTA U� Theme For 27th Annual International Conference In September
Director Krista Vardabash and President Lois Dale are both excited
about the new �IRTA U� concept, which will be the focus for the
International Reciprocal Trade Association�s 27th annual convention
scheduled for September 14-17, at the Island Grand Resort/TradeWinds
in St. Petersburg Beach, Florida.
Dale exclaimed, �Just as in a true university setting, we will
present a curriculum complete with speakers, classes and seminars.
It will focus on instructing and inspiring current, as well as
future, exchange owners on responsible and sustainable operations
A curriculum of
classes at �IRTA U� is presently available at
Schacht�s ITA Goes Remote To Boost Productivity & Sales
Trade Association, founded in 1983, is the largest independent
barter company in the United States. They represent 6,000
professional clients as well as 1,000 corporate clients, such as
resorts and media outlets.
With such a
large client base covering the U.S. and Mexico, and a relatively
small sales force of 15, ITA faced a roadblock to future growth
because of unreliable remote access to its business-critical
applications. (The company employs another 50 people, and its IT
staff comprises two programmers.)
So to push the
company�s sales toward their $100 million annual sales goal, they
took action! Schacht says the problem was solved when ITA partnered
with Performance Network Solutions, a Silver Citrix Solution
salespeople, when working from home a hotel or a customer site, can
use their own computers or company laptops to securely access the 20
client applications that are maintained centrally. (ITA is also
experimenting with extending the solution to its brokers.)
president Jack Schacht says the improvement is amazing. �Our remote
users were losing valuable time, a half hour a day or more, due to
dial-up connections. Now they can connect quickly, and don�t have to
make a special trip to the office for something. This saves them
time that can be spent selling.�
�We figured nearly $4,000 per person was lost yearly in
productivity. And when ITA wanted to hire additional out-of-state
people, there was the big question of how to provide them with
access to our applications and data.�
on Illinois Trade Association see
Files Annual Report, Acquires More Equity Capital
International Monetary Systems (OTCBB:INLM) has filed
its Form 10-KSB Annual Report for the year ending December 31, 2005.
CEO Don Mardak says 2005 was a banner year for the company with five
acquisitions, revenue growth of 31%, and positive cash flows from
operations in excess of $678,000.
He also noted that after deducting expenses,
resulting primarily from accounting adjustments and changes to
comply with the S.E.C. standards and Sarbanes-Oxley rules, the firm
reported a net loss for the calendar year of $221,639.
IMS processed more than $52 million in barter
transactions (one side of the transaction) and generated revenues of
$6.2 million, an increase over 2004 which had $37 million in barter
transactions and revenues totaling $4.7 million.
The company increased the size of its outside sales
force to fourteen and averaged nearly 100 new-client enrollments
$1 Million Received From Praetorian
The firm also announced the receipt of $1 million in
funds which will be used to finance additional acquisitions, reduce
outstanding debt, and supplement working capital.
Mardak affirmed, �We are thrilled to have earned the
confidence of a firm such as Praetorian Capital. Unlike so many
funding opportunities that have been presented to us, this is a pure
equity investment in our company�s common stock, which demonstrates
the confidence that Praetorian management has in our future.
TeleTrade�s First Quarter Trading Volume Up 24%!
CEO of TeleTrade International and eValues, announced the TTi�s
international service center for independent trade exchanges saw a
healthy increase of 24% in trading volume in the first quarter of
2006 versus first quarter 2005.
activity for 2006 was $13,903,425 versus $11,219,691 for 2005.
According to Lasater, total internet activity since 1999 when TTi
took its technology online now exceeds $376 million.
system is designed for independent trade exchanges, and undergoes
continual enhancements by a full-time staff. For more information
Vail, Aspen, Steamboat Springs!
IMS Expands Again, Acquiring
Trade Exchange of the Rockies
Some of the most prestigious ski areas in the world
are now part of the International Monetary Systems growing barter
system, as CEO Don Mardak has acquired the Trade Exchange of the
Rockies� (TER) assets and client base. As the firm�s eighth barter
company acquisition in the past twelve months, TER was purchased for
$720,000, including $500,000 cash, a $100,000 promissory note, and
$120,000 in IMS stock.
TER, founded and operated by Bill Stein and his
staff, built a strong client base of 600 members in a highly
strategic vacation venue. Its ski resort accommodations in Denver
and the surrounding areas of Vail, Beaver Creek, Aspen, and
Steamboat Springs will subsequently become an integral part of the
IMS now serves 9,700
clients in 35 U.S. markets. Mardak says the acquisition is another
step toward his goal of creating a �coast-to-coast bartering system
that will have a true impact on the economy.� IMS is a recognized
member of the National Association of Trade Exchanges (NATE) and the
International Reciprocal Trade Association (IRTA). For more
information go to
Barter Happenings Here & There
International Monetary Systems (OTCBB:INLM) has
drawn $565,000 from its recent funding commitment of $1.2
million. CEO Don Mardak used the funds for the company�s most
recent acquisition, Trade Exchange of the Rockies. For more
information go to
New prospects for trade exchanges�new business
startups�in the U.S. numbered 611,000 in 2005, according to the
Kauffman Foundation in Kansas City (MO). Additionally, the
Census Bureau reports that among small businesses in the U.S.
(which typically are members of a trade exchange) 18.6 million
are without outside employees, 3.9 million have fewer than five
employees, and 1.4 million have six to nine employees.
The National Association of Trade Exchanges
(NATE) is offering an early 20% discount rate, if payment is
made by April 30, for its upcoming Toronto 2006 convention. The
event is scheduled for August 10-12, at the Delta Chelsea Hotel.
For details on discounts and online registration check out
Touma, Managing Director for Business Barter Exchange (BBX),
reports that their stock hit an all time high on April 11, at
30-cents per share. The company has also lodged a prospectus
with the Australian Securities and Investment Commission to
raise substantial income for the BBX Property Investment Fund.
For more information see
Largest Independent Trade Exchange In America Introduces Trademart�An
Online Barter Shopping Mall
one of the barter industry�s most innovative thinkers as well as a
man of action, has announced the implementation of ITA�s recent
ambitious effort...launching Trademart, an online barter shopping
was founded by Schacht and is the largest independent trade exchange
in the U.S. with a membership of over 5,000 active traders. The
firm�s corporate division is National Trade Association (www.ntatrade.com).
transparency, the online barter mall is open to the entire world!
Schacht invites members and non-members alike, to browse Trademart
ITEX Reports Transactions, Income, Repurchase Of Shares
Corporation (OTCBB:ITEX) announced that New York franchisee John
Castoro exceeded $20 million in transaction volume during the past
12 months, earning close to $900,000 in cash fees. CEO Steven White
stressed, �Part of our expansion goal is to attract solid performers
to become ITEX franchises, while we cultivate our existing
independently-owned offices to grow organically.�
Transaction volume of $37,004,000 compared to $23,299,000 in the
same period of 2004, a 59% increase.
Cash deposits of $2,337,000 compared to $1,557,000 in the same
period of 2004, a 50% increase.
Completed transactions comprising 49,112 compared to 28,017 in the
same period of 2004, a 75% increase.
Member businesses totaling 22,000 compared to 13,400 in the same
period of 2004, a 64% increase.
On March 23,
2006, the firm repurchased 300,000 shares of common stock from
Collins Christensen (former CEO from 1999 to 2001) for 55� per
share, or $165,000. The shares were immediately canceled reducing
the overall common stock share count to 18,406,132. (Mr.
Christensen�s holdings have been reduced to 1,259,130, or 7.3% of
the outstanding shares, from a high of 14.3% in May 1999.)
Munson Gets Ink With $150,000 Barter Deal
former BXI area director and now owner of BBX Business Exchange,
received a fine write-up in the Burbank Weekly after a large
print job was consummated on a cash blend basis (50% cash, 50%
trade) through his California-based trade exchange. Further
information an be accessed at
IMS Activities Taking Place On Many Fronts
Monetary Systems (IMS) has acquired Southern Barter Exchange�s
clients, adding to its Continental Trade Exchange network. A
definitive agreement was reached with President Kenn Flemmons, of
the Memphis (TN) firm, who, according to IMS� Don Mardak, runs one
of the finest trade exchanges in America. (This transaction does not
include Flemmons� SBE operation in Little Rock, Arkansas.)
Barter Systems of Los Gatos (CA) has been procured as well. CEO Don
Mardak, says this is a strategic acquisition for IMS as it
strengthens their presence in the dynamic Silicon Valley market. The
company now has over 2,000 members in Northern California.
has received a commitment for additional funding from private
investors for up to $1.2 million; the company intends to use the
proceeds to conclude acquisitions of strategically located trade
exchanges. The company also reported revenues for February of
$526,000, an increase of 42% over February 2005. For more
information go to
BBX Forms Real Estate Fund For Property Acquisitions
Holdings is forming a subsidiary, the BBX Property Investment Fund,
for residential real estate ventures. Both cash and barter currency
is being sought from investors and BBX members for the new
subsidiary, which is intended to be traded on the Newcastle Stock
Exchange. According to BBX�s CFO, Tim Creasy, �The BBX Property Fund
is unique in that it will be the only fund that utilises barter
exchange looks to use 33% barter currency, 33% cash, and 33% debt
funding for acquiring property both in Australia and New Zealand.
For more information:
In its first
month of operation, Bartercard Real Estate (Bartercard�s
wholly-owned UK subsidiary) has achieved sales of 35 properties,
substantially ahead of early internal target forecasts.
Bartercard members have deposited, on average, 30% of the total
purchase price in trade pounds.
sales by Bartercard over the past six months include Australia�s
five sales totaling A$1.6 million and UK deals valued at 524,000
pounds. In Australia, Bartercard now has 60 offices, 55 of which
are independent franchisees. The UK operation has 15 offices
with 10 owned as franchisees, and the potential for 150
franchisees according to management.
has acquired total equity interest in D-ISC Holdings, which
developed a proprietary software-platform administering to the
HR intranets of large corporations. The objective is to enhance
loyalty between a company and its employees and customers.
D-ISC has a
contract to provide customer and staff loyalty programs for Cendent,
one of the world�s foremost providers of travel and real estate
services in the world. Additionally, companies within the Bartercard
network will be able to sell their products and services through the
D-ISC channel, enabling Bartercard to expand its
business-to-business activities through its list of international
corporate partnerships. For further details on this strategic
reached an agreement with Texaco UK, enabling its members to
purchase fuel at a discount from all 1,485 Texaco outlets, with a
fixed buying price for the week ahead. Bartercard Executive Chairman
Wayne Sharpe was delighted that the buying power for their UK
membership is proceeding as planned.
IRTA Conference Held In Amsterdam
Global Board and Europe Chapter Board met in the Netherlands near
Amsterdam on March 24 and 25. The board meetings addressed
comprehensive agendas and were followed by a mini-conference
complete with keynote speaker, marketing seminars, and trading
There were 45
attendees from eleven countries (United States, Spain, Poland,
United Kingdom, Belgium, Netherlands, Germany, South Africa, China,
Singapore, Canada) at the conference. Therecia Venema of E Banc
Trade Netherlands arranged the event with the Hotel Harrlem Zuid,
and graciously sponsored an after-dinner canal cruise with
transportation and drinks included.
The IRTA Global
board discussed the IRS Stakeholders Reception attendance in
February, unsubstantiated reports of barter statistics from
fictitious organizations, and their upcoming September international
conference in St. Petersburg Beach, Florida.
The IRTA Europe
Chapter examined the importance of continued unity, especially in
light of a recent BBC report about the EU cracking down on
alternative methods of funding potential terrorists. The members
also voted for chapter leadership:
Husemann (EBB, Germany)
Vice President�Richard Logie (TBEX, Scotland)
Secretary�Therecia Venema (E Banc Trade, Netherlands)
Treasurer�Dariusz Brzozowiec (BCI, Poland)
�Once again, I
am proud the IRTA was the unifying force that brought together so
many different countries, so many different exchange models, and
many different perspectives on the industry,� Krista Vardabash, IRTA
Executive Director, asserted.
TeleTrade Announces Large Trading Volume Increase
TTi (TeleTrade International),
announced that its international service center for independent
trade exchanges saw a remarkable 56% increase in total combined
trade volume for its online systems...posting $5,148,275 for
February 2006, versus $3,296,496 for February 2005.
CEO Gary Lasater reports total trade activity for the first two
months of 2006 was $19,023,093, and the total of all online activity
since 1999 exceeds $364,000,000. TTi, the creator of the
technology, now offers four ways of authorization approval: online,
telephone, real-time e-mail, and swipe card.
information contact Gary Lasater at (303) 840-7172 ext. 1, or e-mail
Acquires Rival Tradebart Australia
Managing Director Michael Touma has announced the Business Barter
Exchange (BBX) acquisition of Tradebart Australia�s membership base,
the third largest barter exchange in Australia.
Touma says the latest move complements the procurement of Tradebart
New Zealand�s membership late last year, and will provide a
significant boost to the BBX business base in Australia as it
represents a 10% increase in membership for the company.
BBX is currently
exploring master franchise opportunities in Southeast Asia. For
further information see
Karen Welch Names Her Biggest
One of the classiest ladies I�ve met in the commercial barter
industry is Karen Welch. A conversation with Welch is always
fascinating because she is quick, direct, and not afraid to speak
her mind. She also runs a terrific exchange in Polson, Montana,
We recently had a chance to exchange some ideas, and the following
is her perspective on several topics. . .
Barter prices: �I guess everyone has their way of doing things, but
ln Montana we don�t buy overpriced products and services just
because it�s available on trade. My biggest competition is cash. By
far. People here simply won�t spend more than what is reasonable on
Our market: �I believe that we have a way, way different market here
than most anywhere else. Our communities are very small, and it is
impossible to just run through people as word gets around very
quickly. We have to have a good reputation. Thankfully, I can
barely keep up with the referrals that we�re getting now.�
�I�ve been saying the same thing year after year about pricing and
service, so much so that I�m beginning to get bored listening to
myself. I�m on a major campaign to educate all of our new members on
how to use their trade income to increase profits, and I�ve found
your weekly e-mail Tuesday Report and the monthly
Competitive Edge newsletter help me hugely. I appreciate your
work. I also like your list of barter companies on the web site.�
ITEX Continues Posting Strong Figures
The ITEX Corporation (OTCBB:ITEX) has posted results of the second
quarter of fiscal years 2006, ending January 31, 2006.
Revenue was $4,029,000 compared
to $2,656,000 for the second quarter in fiscal year 2005, a 52% increase.
(Revenue for six months was $7,750,000 compared to $5,163,000, a 50% increase.)
Operating income was $315,000
compared to $234,000 for the same period in 2005. (Operating income for six
months was $663,000 compared to $460,000, a 44% increase.)
Operational cash flow increased
126% to $1,350,000, up from $598,000 in the six-month period ending January 31.
Outstanding notes payable
(acquisition debt) were reduced to $872,000, from $2,346,000 at July 31, 2005.
Bank line-of-credit increased to
$1,000,000, from $500,000.
Completed transaction volume of
more than $65,000,000 by processing over 90,000 transactions.
ITEX Corporation�s report on Form 10-QSB can be found at
information on ITEX visit
IMS Eyes 200+ Monthly Enrollments
International Monetary Systems (OTCBB:INLM.OB) announced it enrolled
a record 216 new clients in January and February. National Sales
Manager Barbara Martin says the company�s outside sales force is now
fourteen people, with plans to hire more.
The firm�s goal is
to be signing up over 200 clients per month by the end of 2006. For
more information go to
Million BBX Trade Dollars Used To Purchase $8.3 Million Resort
Australia�s BBX Holding Ltd. (BBX) announced their successfully
completed sale of The Apollo Country Resort at Wamberal, New South
Wales. The hotel, restaurant, and convention center is located on
five prime acres only minutes from Crown Plaza Terrigal Beach.
The contract price of $8.3 million included $2 million BBX trade
dollars, with the balance paid in cash. The resulting transaction
fees of $440,000 for a single transaction is an Australian record,
according to their news release. The company completed $10 million
in real estate sales in February.
BBX has $83 million in real estate offerings for members.
Additionally, it plans an IPO (initial public offering) of the BBX
Property Investment Fund Ltd., which has $130 million in Australian
and New Zealand real estate.
Acquires Credible Competitor�American Barter Network
Ron Whitney, CEO of Barter Network Inc. in Chadds
Ford (PA), has informed BarterNews that his company recently
acquired the barter accounts of one-year old start-up American
Barter Network (ABN). BNI, with a membership of 1,300, ranks as the
largest trade exchange in the Philadelphia market.
The procurement of ABN in Bryn Mawr marks the second
time in two years that BNI has gained a credible competitor in its
region. ABN�s founder John McKenzie will stay on with BNI as a
sales/marketing representative in the Philadelphia region.
remarked, �The acquisition of ABN�s accounts was a natural. We can
provide a vast array of purchasing options to the newly gained
members, and BNI members will benefit from the quality of those that
have joined the fold.�
Bartercard�s Global Expansion Continues With Frankfurt Stock
Bartercard International has entered into agreements
with European Entertainment Investments for the issuance and sale of
�4,140,000 in Bartercard�s convertible notes. The company has also
obtained listing of its shares on the Frankfurt Stock Exchange.
According to Wayne Sharpe, Chairman of Bartercard,
�This funding will enable Bartercard to expand its operations as we
continue to seek additional partnering opportunities in Europe,
Asia, and North America in our pursuit of global expansion. We
believe our listing on the Frankfurt Stock Exchange will attract
German investors and help establish a continental European
Bartercard UK Launches Real Estate
Bartercard Real Estate (BCRE), a new, wholly owned
subsidiary in the United Kingdom (UK) has been recently established,
and Tim Ashley-Sparks has been appointed Managing Director. Under
the BCRE system, a 25% to 50% deposit on a property can be paid in
trade. Thus enabling the buyer to purchase a large portion of the
property with goods and services rather than cash.
The BCRE concept has been operating in Australia for
almost a decade, with a $2.5 million of property deals signed last
For more information
Other Barter Company Happenings Globally
After a four-year hiatus from rugby sponsorships, Australia�s BBX
announced a significant agreement with South Sydney Rugby League
Club. The sponsorship will provide a high visual presence at the
�Souths� Telstra Stadium home games in Homebush, home of the
The firm also
reported in a recent news release the imminent expansion into China.
BBX trades on the Australian Stock Exchange (ASX). For more
information go to
�We have secured the funding
necessary to continue our industry roll-up program on attractive
�Don Mardak, IMS
President & CEO
International Monetary Systems (OTCBB:INLM) reported that its
revenue for January was $538,000, an increase of 57% over January
CEO Don Mardak says he has never been more excited about the
company�s future, since their growth strategy of acquiring
independent trade exchanges to add (to the Continental Trade
Exchange network) has been a huge success.
Now, with secured funding in hand, Mardak believes the company is
ready to continue with an aggressive industry roll-up program. For
more information go to
IMS Featured In ValueRich
Monetary Systems is one of eight companies featured in the current
issue of ValueRich magazine, which has over 58,000 readers
including 8,000 public-company CEOs, fund managers, money managers,
investment bankers, and others. Mardak will present a corporate
overview of the IMS growth strategy at the ValueRich Small-Cap
Financial Expo, to be held March 8-9 in Miami (FL).
ITEX Convention In Las Vegas Could Be Industry�s Largest
Word from the ITEX Bellevue (WA) headquarters (OTCBB:ITEX)
is that this year�s convention, slated for May 21-26 in Las Vegas,
will have over 200 in attendance. Alan Zimmelman from the corporate
office reports the convention is officially sold out...with 140
rooms and suites snapped up in record time.
This year�s theme, �The Winning Team,� will have
outside presentations from Fred Pryor Seminars, Sales Coach
International, and Team Bonding.
The six days of
strategizing and sharing will be kicked off with a keynote address
by Steven White, the Chairman and CEO of ITEX. He will be covering
his favorite topics�the cashless marketplace and how he expects ITEX
to set industry trends. For more information visit
Program Developer Steve Webster Teaching Certified Trade Broker (CTB)
IRTA Executive Director Krista Vardabash has announced that the
Certified Trade Broker (CTB) seminar and exam will be offered at
IRTA headquarters in Rochester (NY) on March 11, as well as in
Amsterdam at the IRTA Europe International Barter Conference on
Vardabash elaborated, �After announcing that the CTB would be
offered to attendees in Amsterdam, we received numerous calls asking
when the next test would be held in the United States.
�IRTA has always offered the CTB training and testing at our annual
conference in September, and will continue to do so. But because we
see a growing need for education of sound trade exchange practices,
IRTA will begin to offer our educational programs at more convenient
times and places for interested barter brokers.
�Even more special is that Steve Webster, the creator of the program
and a IRTA Hall of Fame member, will be teaching both CTB programs
in March. Webster not only developed this program, but maintains one
of the most respected exchange and broker networks in the business.�
There is an application and approval requirement to attend each
program. Exchanges with interested brokers should contact Krista
Vardabash at (585) 424-2940, or go to:
Becker Addressing IRTA Europe Conference
The coming IRTA Europe International Barter Exchange Conference,
scheduled for March 24-26 in the Netherlands, will hear Ralf Becker
discuss the rise of local and regional complementary currency
networks. Becker, co-author of the study �Our Future
Economy�Sustainable Finance for the Wealth of People,� will also
share his thoughts on the important role that trade exchanges will
play in the future of the world economy.
Becker will compliment the Conference�s focus, �Reaching For The
Stars: Uniting People and Standards in a Cashless Trading World,� as
he is the coordinator and coach in the Regio Network, an
organization of approximately 50 regional complementary currency
initiatives in Germany and Austria.
Other presentations scheduled will include one on the World Travel
Exchange (WTEX), a vehicle trade exchange owners worldwide can use
to garner travel from other exchange owners. Plus a �How to Market
Your Exchange� session promises some innovations, as European
exchange owners share their strategies on marketing and techniques
promoting the concept of barter in Europe.
The event will be
held at the Hotel Haarlem Zuid. For further information and
registration contact Krista Vardabash via e-mail at
email@example.com, or go to
Bartercard Sells Turkey License For $600,000
The sale of the license for Bartercard in Turkey,
which sold for US$600,000, has been completed and the final payment
collected for it. The majority shareholder of the new license is Mr.
Mose Elis, who will take on the role of CEO. He is founder and owner
of Endotec, one of Turkey�s major medical supply companies, which
he�ll be leaving to focus his efforts on this new project.
Training for the foundation management team is now
taking place in Australia, with beginning operations in Turkey
targeted for early April.
Bartercard International Chairman Wayne Sharpe was
enthusiastic. �This is an exciting expansion in the region, and the
team behind this license consists of talented individuals,� he
noted. �With licenses already operating in nearly Jordan, Lebanon,
Egypt, Cyprus, Qatar, Kuwait and the UAE, the region is poised for
continued development and expansion.�
Record Growth Reported By
International Monetary Systems
Monetary Systems (OTCBB:INLM) processed more than $52 million worth
of trades in 2005, producing gross revenue of $6.2 million. The
figures represent increases of 40% and 31% respectively over the
year ending December 31, 2004. (The listed $52 million in trade
volume represents purchases only, just one side of each
The company now reports 9,200 members in 32
markets, and management believes that it will have more than 11,000 members by
the end of the year 2006. Don Mardak, President and CEO of IMS, commented, �2006
looks to be yet another blockbuster year for the company. Our stock price
continues to lag our core business fundamentals, and this is why I continue to
buy back shares in the open market.�
National Association of Trade
Exchanges Reports Banc
Thanks to David Powers of VIP Barter for providing
the following list of the top ten trade exchanges within NATE using
the Banc trade currency
for their reciprocal trading in 2005.
Trade Exch. Of
NCE - St.
member North Louisiana Trade Exchange has some offerings (builder�s
residential lots, medical supplies, mini-chopper motorcycle, etc.)
listed in The Barter MarketPlace, go to:
eValues Expands Online Technology Services
Gary Lasater, CEO of TeleTrade International and
eValues, has provided online technology processing services to the
barter industry for decades. Lasater�s eValues is now expanding its
services, offering local community based service centers the
opportunity to set up a private branded Community Finance Service
According to Lasater, this private branded CFSC
allows local service centers to use their own logo and business
names within each web site, thus enhancing the financial health of
their local community. For complete details on establishing a
Community Finance Service Center go to
or call Gary Lasater (303) 840-7172, ext. 1.
Trade Exchange Industry First...Automobile Fuel On Barter!
has learned that members of the EBanc Trade Network (www.ebanctrade.com)
can use their trade dollars to buy automobile fuel in Australia on a
EBanc is working
with FUELbanc (www.fuelbanc.com)
to provide this service to their members. The FUELbanc gas card
works at all fuel outlets across Australia, including major chains
and independent retailers.
Whitney�s Unstinting Efforts On Behalf Of U.S. Commercial Barter
Kudos to IRTA board member and lawyer Ron Whitney,
president and founder of Barter Network (www.bniusa.com)
in Chadds Ford (PA), who has taken considerable personal time to
write a position paper on Form B Notices for tax withholding.
His position asserts that trade exchanges (barter
companies) should be excluded from having to send Publication 1281
B-Notice back-up withholding letters to barter clients as a matter
of fact and law.
Recently he traveled to Washington, DC, on behalf of
IRTA. There he attended a special IRS reception for the agency�s
partnerships, which included IRTA. While at the reception Whitney
was able to meet and talk with IRS Commissioner Mark Everson, Small
Business Commissioner Kevin Brown, Chief �E� Officer Phyllis Grimes,
and key members of IRSAC (IRS Advisory Council).
Whitney�s unstinting efforts, as well as his
attendance at this special reception, established good relationships
for IRTA�s continual work on behalf of the commercial barter
industry. Below is a copy of Ron Whitney�s actual �position memo.�
January 25, 2006
Applicability of Back-Up Withholding Requirements of Publication
1281 To the Organized Barter Exchange Industry
1281 � �Back-Up Withholding for Missing & Incorrect Name/TINS�,
requires organized barter exchanges to back-up withhold on accounts
with non-matching TINS/SSNs. Such requirement is impossible to
comply with since barter exchanges do not maintain or control ANY
cash accounts of their clients from which back-up withholding could
take place. As third party record keepers, barter exchanges maintain
trade accounts, (not cash), for their members.
aforementioned internal IRS systemic problem causes undue hardship
to the barter industry in the form of unjustified fines, penalties,
the TEFRA of 1982, barter exchanges file annual information returns
with the IRS verifying the total amount of barter sales for each of
their member clients. The members also receive a 1099B form to be
included with their tax returns. Incorrect SSNs/ TINs on file with
the barter companies may arise from clients�
misrepresentations or disappearances. Publication 1586 � �Reasonable
Cause Regulations & Requirements for Missing & Incorrect Name/TINS�
was the controlling standard for decades on the issue of
non-matching SSNs & TINs. It required barter exchanges to show �the
failure was due to reasonable cause and not willful neglect.� The
12-2004 Revision of Pub. 1586 now requires barter exchanges to send
�B-Notices� to non-matching clients threatening to back-up withhold
pursuant to the dictates of Pub. 1281, and abatements are granted
or denied based on an exchange�s compliance with �B Notice�
solicitation rules. Theresa Spillett, IRS Tax Specialist,
Holtsville, NY office recognized the impossibility of barter
companies complying with Publication 1281 in her 3/15/05 penalty
abatement letter, (attached), to Barter Network Inc.: �You also
established the fact you are unable to by law comply with back-up
withholding as these payees� accounts are not cash accounts. They
are paper accounts, as they barter their individual services for
back-up withholding requirements placed on barter exchanges as
codified in Publication 1281 must be removed, since compliance
exchanges is impossible as a matter of fact and law.
2006 International Conference Slated For Florida
Krista Vardabash, executive director of the
International Reciprocal Trade Association, has announced that the
organization�s 2006 International Conference will be held at the
Island Grand Resort in St. Petersburg Beach (FL) from September 14
through 17. Vardabash noted that the Island Grand is a spectacular
property and easily accessible globally.
Additionally, she reported that IRTA will be
maintaining a focus on core values through standard setting and
unity...using the same theme from last year, �Uniting People and
Standards In a Cashless Trading World.�
the program IRTA built around this theme in 2005 received high
marks, and created tremendous excitement for the future of
credit-clearing through various means. For more information:
BizXchange Lauded By Bay Area Barterers
Chris Haddawy, one of BizXchange�s owners and manager
of the company�s Bay Area office, and Account Manager De De Wentz
have received acknowledgment in the local press about several
outstanding businesswomen who are members of their trade exchange.
The following excerpts are from Bay Area
Shari Woolridge joined BizXchange shortly after she
opened her stylish East Bay shoe shop, Steppin� Out. One of her
first expenditures on trade was a large ad in the glossy Oakland
Magazine, which Woolridge said �paid off immediately.�
RSVP Postcards owner Melinda Manley exclaimed the
BizXchange service is the best she�s experienced. �I�ll send them a
list of items or services I�m looking for (on trade), and within 24
hours they�re back to me telling me which ones they can provide. I
always know where I stand with these guys!�
Irene Ralston, owner of SelectFreshCusine.com,
relishes the exchange�s services because it provides her with
another network...one that promotes her business outside of the
BizXchange, headquartered in Seattle, recently was
No. 16 on the Puget Sound Business Journal�s list of
Washington State�s 100 Fastest-Growing Private Companies. For more
Bank Extends ITEX Line-Of-Credit To $1 Million
ITEX has announced that its credit capacity/facility with US Bank
has been expanded from $500,000 to $1,000,000. CEO Steven White
elaborated, �Our financial stability over the last two years, and
the reduction of $1.3 million in debt during the last six months
coupled with our long term relationship with US Bank, has resulted
in our ability to access a larger amount of capital.�
White says the
company is well-positioned to take advantage of strategic
opportunities as they arise, and pursue the further development of
their cashless payment transaction platform. For further information
on ITEX go to www.itex.com.
Zampatti Promoting Entire Concert On Barter
Ric Zampatti, founder of The Barter Company in Atlanta (www.barterco.com),
is one of the more enterprising exchange owners in the country. Over
the last several years he has ambitiously built a very successful
billboard business in his area, known as Southern Media.
Now he�s moving in another direction that could prove to be most
interesting as well...under his direction, Southern Media is
promoting Big Head Todd and the Monsters concert March 11, 2006, at
The Fabulous Fox Theatre.
Bartered tickets to a concert are one thing, but using barter to
organize and stage an entire concert is quite a different story.
According to Zampatti, the facility, lighting and other expenses
involved with staging the concert, will be handled on a bartered
basis, as well as the considerable advertising effort.
The band, based in Boulder (CO), and Zampatti have wanted to stage
such a concert for years, but they could not get the dates to
coincide with the band�s touring schedule. For more information on
the band and concert go to
Illinois Trade Association Offering New Online Barter Shopping
Service To Membership
ITA�s Jack Schacht
and Joan Varner will soon be introducing a new service for their
6,000 members...a very ambitious online shopping store where members
will be able to choose from over 2,000 items. All products will be
available for purchase over the Internet on a 100% trade basis. For
more information on Illinois Trade Association go to
Other Barter Company Happenings
TeleTrade International (TTi) has updated its
summary totals as reported in the January 17 Tuesday Report.
CEO Gary Lasater explained, �Processing totals since taking our
technologies online in 1999 has exceeded $346,877,831, previous
totals only reflected activity through 2004.�
The primary web site accounting for this activity is
launched to help independent trade exchanges (barter companies)
compete with larger national or international entities while
maintaining their independence and control.
ITEX Corporation (OTCBB:ITEX) has reduced it debt
by more than $1.3 million during the last six months, in
addition it has repurchased 250,000 shares of its common stock.
CEO Steven White elaborated, �We continue to execute an
efficient, profitable model, growing both our business and
revenues, as well as profits and cash flow. From our
perspective, the best use of our cash at this time is the
repayment of outstanding debt. We also took advantage of an
opportunity to repurchase our common shares at an undervalued
Reiner Husemann, President of IRTA-Europe, and
Bernard Lietaer, keynote speaker at last year�s IRTA Congress at
Disney World, are on the advisory board for EBBS International
Business School. EBBS is a business school for entrepreneurs
that will use the advantages of barter and complementary
currencies, such as time-dollars and trade dollars/euros. For
more information go to
Buddy Hooper, President of OrangeBee Private
Monetary System in Florida (www.orangebee.com), asks the
question, �Is no one capable of signing up a new member in the
barter industry?� Hooper�s query projects a prevalent reaction
that occurs among exchange owners when a desirable member is
chased by other barter companies.
Fortunately for Hooper, in this case a loyal Florida magazine
and client insisted (to the competing barter company) that all
trades must go through OrangeBee. Obvious message: Clients
appreciate great service and will reciprocate�in most
situations�with a much appreciated loyalty.
BarterNews office received a call last week from an enterprising
ITEX member located in San Diego. In one of the hottest real
estate markets in the country, this client managed to acquire
commercial space on full trade. And he is quickly subletting it
out for cash.
Matchbin Barter Platform Providing Easy Entry Into $17 Billion Print
Classified Market, Plus eBay & Yahoo
Located in Salt Lake City,
was launched in 2002 as an online automated barter marketplace. The
company has taken on a paradigm shift with the introduction of its
�Community Marketplace� that enables entrepreneurs, businesses, and
organizations to own a web site that is locally focused, yet
globally connected. The platform provides entry into the huge
classified ad market.
Matchbin sees their proprietary program providing
significant opportunities for Community Marketplace partners to be
on the cutting edge of e-commerce, and create significant growth for
their organizations. Matchbin says it currently has 275 communities
The firm also offers other services, such as the
Matchbin Storefront which is a retail site. A business of any size,
can use it to barter or sell products and services to Internet
users. There is a minimal flat fee of $39.95 per month.
Bartercard Processes More Transactions Than American Express &
Diners Club Combined
The world�s largest barter company, Bartercard Plc.,
with 25,000 Australian businesses which are members of the barter
organization, has affirmed that they process more transactions (in
Australia) than American Express and Diners Club combined!
In addition, Bartercard Australia has formed a
strategic alliance with four major Australian banks�Commonwealth
Bank of Australia, National Australia Bank, St. George, and Westpac
Bank. The group agreed to Bartercard�s system of linking its barter
platform with point-of-sales electronic funds transfer (EFTPOS or
According to CEO Wayne Sharpe, greater bottomline
profits will result. He explained, �The (previous) Bartercard New
Zealand experience is such that approximately 70% of transactions
are processed electronically, at a cost of up to 50% less than a
(hand-processed) voucher transaction.�
Sharpe said that Bartercard Australia accounts for
over 65% of Bartercard�s revenue; its largest cash expense is head
office administration printing, distribution, phone authorisations
and processing of vouchers. Since members will now be able to buy
products by making an EFTPOS transaction rather than filling out a
voucher, Sharpe concluded, �The net effect of this strategic
alliance on our bottomline should be substantial.�
Bartercard Deploys Online Log-in
The world�s largest trade exchange (www.bartercard.com)
is working with internationally renowned SentryBay to deploy the
first global online log-in protector across Bartercard�s 17-country
Customers who deploy the optional software (which
takes one click from any international Bartercard web site) prevent
any keylogging spyware from monitoring member log-in details.
New Zealand-based SentryBay Corporation (www.sentrybay.com)
has sales offices in North America and the United Kingdom. It has
five current products, and licenses its patented anti-keylogging
technology for use in protecting log-ins within third party software
Originating in Australia in 1991, Bartercard has
expanded through franchising to 17 countries internationally. The
firm is listed on the London Stock Exchange.
Reports Another $6 Million Trade Volume Month
Don Mardak, President and CEO, reported that December
was another �fabulous month� for International Monetary Systems (OTCBB:INLM).
�Our revenue growth continues as our trade brokers generate higher
trade velocity and new, incremental sales for their clients.�
The company announced revenue for December was
$619,000, an increase of 41% over December 2004, as they processed
$6 million worth of trades for the second consecutive month. IMS
reports its trade volume on barter purchases only (one side of the
transaction), instead of the usual dual reporting of purchases plus
Exchange, under parent company IMS, serves more than 9,300 customers
with 14,000 cardholders in 32 U.S. markets. Headquartered in New
Berlin (WI), the firm generates revenue through monthly account
maintenance fees of $12 cash and $12 trade, plus cash transaction
fees of 12%, usually paid 6% by buyer and 6% by seller. For more
International Reciprocal Trade Association Introduces New Membership
Category And Brand Verification Program
Now into its 27th year of existence, IRTA�s board of
directors has addressed the issue and acknowledged that there should
be a way for exchange systems that are not commercial barter
exchanges to become members...and thus created a non-commercial
category for IRTA membership.
At the same time a new effort to protect the IRTA
brand is in the works. Each member will receive a certificate for
office display and also a digital �IRTA 2006 Member� logo to place
on their web site. The logo will be uniquely verifiable when a
computer mouse is placed over it, so it cannot be duplicated.
Krista Vardabash explained, �An IRTA membership is something to be
proud of, as it means you belong to a network of professional
exchanges that keep each other accountable to doing the right thing.
It should be a vital part of each barter company�s marketing
�I believe Bartercard is now in excellent
shape to realise its considerable potential to grow internationally and to
generate excellent value for shareholders.�
�Wayne Sharpe, Executive Chairman
On December 7, 2005, Chairman Wayne Sharpe provided some insight and
figures on Bartercard�s first interim results as a publicly-traded
company. For the six months ending 30 September 2005, Bartercard had
a turnover (gross revenues) of $27,811,038 with a profit
before taxes of $556,493.
Sharpe�s letter reported, �All of the company�s major subsidiaries
performed ahead of forecasts during the period and the largest,
Bartercard UK and Bartercard Australia, were consistently
profitable, with a new national trading record being set in the UK
�In all company owned and licensed operations 6,700 new members were
acquired globally, with trade volume over $1.25 billion, and ten new
offices opened taking the total to 130.
�Bartercard also took ownership and management control of the
licence and operation in the United Arab Emirates. This will become
the hub office for further expansion in the Middle East and Gulf
region, such as the Qatar office which has commenced operations
�In September, a contract was signed to re-acquire the majority
interest of Bartercard USA. We believe that there is considerable
potential in these territories and expect that there will be a
meaningful contribution from them in the second half of the
It was also
announced that Bartercard Thailand was awarded 2005 Licensee of the
Year. (Bartercard is one of the world�s largest trade exchanges; WIR
in Switzerland is the other.)
Amsterdam Site For IRTA Europe International Barter Conference
The International Reciprocal Trade Association�s Europe Chapter of
trade exchanges and E-Banc Trade in The Netherlands has announced
the dates March 24 - 26 for the spring conference. Following up on
the successful theme of the past IRTA World Congress, held last
September at Disney World in Florida, the attendees will be
�Reaching For The Stars: Uniting People and Standards In A Cashless
The European Conference will be held at the Hotel Haarlem Zuid.
Social events are scheduled as well as an opportunity to tour
Amsterdam, one of the world�s great cities. For additional
information contact IRTA Executive Director Krista Vardabash at
(585) 424-2940, or see
TeleTrade International�s Online Processing Totals Reach New Highs
CEO Gary Lasater
reported that TeleTrade�s online platforms serving independent trade
exchanges, the BANC and international affiliates, processed
$96,816,388. The majority of activity, $60.7 million, came from the
eValues network for independent exchanges, which has grown 1,000%
from its $6 million volume in 2001.
Lasater, their primary trading arena is North America. �By selecting
exchange operators with high principles we have experienced an
exceptional growth rate.�
International (TTi) and its wholly owned subsidiary eValues are
privately owned Colorado corporations. The base technology, created
in 1981, makes TTi the world�s oldest barter-technology development
Lasater pointed out
that since TTi technologies went online in 1999 they�ve accounted
for $248,270,738 in trade activity worldwide, with the independent
exchanges within eValues having nearly half the activity. For more
firstname.lastname@example.org or call (303) 840-7172, ext.1.
Aims To Make ITEX The Cashless Marketplace �Google�
Steven White, CEO and Chairman of ITEX (OTCBB:ITEX), has an
ambitious goal�to lead his company forward to the point that
whenever a company considers doing a non-cash transaction they�ll
White elaborated, �When you need a search engine you think of
Google, when you think of coffee it�s Starbucks, and for online
shopping you go to
Amazon.com. Our desire is to make the business world think of
ITEX every time a cashless transaction is considered.�
Six Offices Generate $1 Million
ITEX reported that six offices, within the network of 95 franchisees
and licensees, generated more than $1 million in transaction volume
(sales & purchases) in a single month�s period. Leading the way with
$2.3 million was the New York office.
In November and
December the company�s transaction volume was $47,663,000, a 63%
increase compared to $29,215,000 for the same period in 2004. Cash
deposits were $2,541,000, a 58% increase compared to $1,606,000.
Completed transactions were up 85%, hitting 67,973 compared to
36,822. Member businesses within the ITEX network were up 64%, with
22,000 members compared to 13,400.
Reports 48% Increased Revenue
(OTCBB:ITEX) announced results for the first quarter of fiscal year
2006, ending October 31, 2005. It was the first period to report
fully combined operations for ITEX and BXI, which ITEX acquired at
the end of the 2005 fiscal year.
incurred and expensed integration costs this quarter, we still
realized a respectable profit,� CEO Steven White pointed out. �And
the integration of the BXI member database and broker network has
Revenue was $3,721,000, compared to $2,507,000 for the first quarter
in fiscal year 2005, a 48% increase.
Operating income was $348,000, compared to $227,000 for the prior
year�s quarter, a 53% increase.
was $681,000, compared to $604,000 in the 2005 first quarter. The
increase was due to integration costs, increased staffing, overhead,
and other office expenses needed to support the acquired BXI
The company expended $112,000 for BXI integration costs.
Assets increased to $9,471,000, from the fiscal year ending balance
of $9,125,000 on July 31, 2005.
Business members participating in the ITEX Marketplace increased to
more than 22,000 from 13,400 in the prior year�s quarter.
Corporation�s report on Form 10-SQB can be found at