How does barter work?
Members who sign up with Modern Trade Alliance become members of TBT, the fastest-growing barter company in the industry. You can then immediately accumulate barter credits by selling a product or performing a service on barter for another member. That member, in turn, can now purchase a variety of goods and services from the trade credits they have accumulated in their TBT account. For example, if a publication barters $2,000 worth of advertising to a carpet cleaner through TBT that publication can now buy $2,000 worth of products or services from any participating member of TBT, or they may even choose to accumulate more Trade credits to make a larger purchase in a future transaction. And as a member of TBT, you have the ability to purchase or sell goods or services with over 50,000 members of barter groups throughout the US and Canada.
Who can barter?
Any business that sells a product or performs a service can apply for membership in TBT. TBT is looking for companies that understand how barter can help improve sales and save cash.
What are the costs?
Monthly Fee : To keep your account active there is a small monthly administrative charge of $10.00 cash and $10.00 trade. We simply debit the latter amount from your trade dollar account balance.
Purchase Transaction Fee : We only charge a commission when you spend your trade dollars. In other words, we must bring you customers and then help you purchase the things you need in the barter exchange. Only at that point do we earn our performance based commission.
Sale Transaction Fee : TBT does not charge a transaction fee on sales.
Annual Renewal Fee : TBT does not charge an annual renewal fee.
When are transaction fees processed?
Fees are electronically processed at the time of the transaction using a credit card or debit card that is kept on file with TBT. Statements are emailed out to you the 1st day of each month.
How do I cancel or close my account?
If you are unhappy for any reason, please let us know immediately and we will try to solve the problem. If you remain dissatisfied, you may terminate the agreement within ten (10) days written notice to TBT. Immediately upon termination, all cash and trade dollars outstanding become due and payable in cash.
Why would I want to accept trade dollars instead of cash?
You’re not accepting trade dollars instead of cash. You’re getting new barter customers in addition to your cash customers. If you have extra time in your week or excess stock on your shelves, why not accept trade dollars? It's just more money that you can spend on your business, on employee incentives or on yourself. Accepting trade dollars will grow your customer base, increase your market share and quite often, barter clients will refer cash paying friends and family when they like your service.
You want me to pay cash for my products and sell it for trade dollars? That doesn’t make sense.
There is a cash component or cost of doing business in every business. Bartering is about getting full retail value for your goods or services.
If you are in a service industry where time may be empty, you have fixed costs of rent, electricity, salaries, etc. You pay those costs whether or not you have customers, so why not bring in barter clients to fill those gaps. If you are a retail store that purchased 100 widgets at $1 each and sold 90 of them for $2 each, you’ve covered your cash costs and realized a cash profit. Now you have 10 widgets just sitting on your shelves. You can put them on sale for $1 each in cash and have $10 worth of buying power or make them available for barter dollars (full retail, not sale price) and have $20 barter worth of buying power. You decide.
Restaurants have perishable stock, hotels have empty rooms – you get the idea. And remember, when customers are coming through your doors, they always bring more customers.†
How can I pay my rent and gas bill with TBT trade?
The cash you save by using TBT can be used to pay for your gas or for rent or any other expenses that might not be payable in barter dollars. For example, you can pay for dental care for your family with TBT. The cash you save on your dental care can be used to pay for your gas. Or perhaps you can use your trade dollars to design a new website that attracts more cash customers. Barter converts to a tool that brings you cash.†
Do I have to pay income taxes on the sales I make with TBT?
Barter exchanges are required by IRS to report all sales at the end of the year. Like cash sales, there are business deductions you can take when trade dollars were used for business expenses. There may also deductions you can take on the fees.†
Does TBT provide support?
Absolutely! We start by assigning you to a broker that will help you put your first few items into the barter store. Your broker will also check in with you to assist you with trade deals. You can also call our office at anytime or email your broker with your questions.
Can I sell an item for part cash, part barter?
The short answer is no. TBT guidelines state the first $2,000 of a transaction must be 100% barter. The amount over $2,000 can be split part cash and part barter, all barter or all cash. Keep in mind when you go to purchase goods or services you will want to pay full barter and no more than the retail cash price.
Who pays for shipping?
Sales tax, tipping and shipping is always paid by the buyer in cash.. Always get shipping and sales tax up front, before sending out items.
Why do you ask for my Social Security number or Federal ID #?
The IRS says if you trade $1.00 it is taxable income. At the end of the year TBT reports all income to the IRS as required by law.†
Why do you ask for my credit card or debit card information?
All fees are processed the day of the transaction using either a credit or debit car. On the first of each month you are sent an email with a link to your statement. The link is valid for one month. If you need a copy of your past statements, they are always available online.
What if a Member does not play by the rules?
If a Member does not abide by the Terms & Conditions or Policies & Procedures their Membership is subject to suspension or termination.