BN was talking with David Wallach recently and our conversation veered to the term reciprocal trade. Wallach says our industry has never properly identified itself, and he offers the following content to better describe our industry's services.  

Wallach Offers Definition Of Barter Industry

By David Wallach

Ancient barter was man’s first form of commerce and consisted of the one-to-one direct exchange of goods and services. Advances in technology have greatly expanded and enhanced the scope of barter far beyond this limited one-to-one model.

In 2007, International Reciprocal Trade Association (IRTA) member companies using the “Modern Trade and Barter” process, made it possible for over 400,000 companies worldwide to utilize their excess business capacities and underperforming assets, to earn an estimated $10 billion dollars in previously lost and wasted revenues.

In terms of income, excess business capacity represents the difference between actual cash revenues received, and the cash revenues and profits that would be realized, if a business operated at 100% of its capacity. 

Most businesses are operating at less than 100% of their potential business capacity.

IRTA member companies can help your business realize lost revenues and make additional profits by making use of your excess business capacity. Consult the worldwide membership directory listing on this web site or an IRTA member company located in your geographical area.

Businesses that choose to participate in modern trade and barter will become a client of an IRTA member company. As clients when they sell their goods and services to other clients in the system they earn trade credits which are deposited into their accounts. They then have the ability to purchase goods and services from other member clients utilizing trade credit in their accounts.

IRTA member companies play a vital role as they provide organization, system management, record keeping, maintenance of transaction record and broker services to each member client.

All IRTA members companies adhere to a strict IRTA Code of Ethics. Businesses that utilize modern trade and barter can be assured that their trade credits are earned and spent within a network that is committed to a high standard of business by meeting requirements that prove the strength and sustainability of their exchange networks.

It is important to note that there are other forms of modern trade and barter. Some of these include complementary (or local) currency organizations, LETS (Local Exchange Trading Systems) and many other forms of alternative monetary systems to help local and regional economies.