How Bartering Network Facilitates New Sales Channel & Preserves Cash In A Business


How Bartering Network Facilitates New Sales Channel & Preserves Cash In A Business

Setting up a business in a new city or community can be tricky as one must do everything from scratch. One must acclimate to the new environment, study and understand how the local government deals with new commercial initiatives, research economic resources, and establish their network.

The internet has turned the world into a global village, and a business person can use that to their advantage. Bartering networks have revolutionized the business scenario by breaking geographical barriers. Entrepreneurs can find what they are looking for faster without affecting their startup’s cashflow.

When starting a business in a new city, you’re also new to what the local market demands more and how much. That can often leave you with surplus inventory or an idle workforce in the initial days. Excess goods require hiring storage units for an indefinite period, but when you’re a member of a bartering site, you’re free to trade them in exchange for other goods or services.

In a bartering network system, no money changes hands directly, and instead of accepting back some asset immediately, one can opt for and accept trade credits. Keep reading to know more about some new sales channels that a bartering network opens up and how you preserve your cash for more immediate and important issues.

  1. Reselling

In this type of sales channel, a business supplies goods or products for sale in exchange for affordable services. For example, distribution or advertisement. The distributor or reseller sells a variety of items to their customers at a different price point. This can be with or without altering the manufacturing information in accordance with the business arrangement.

The exchange doesn’t involve any cashflow but helps identify trustworthy resellers. Brand value remains unaffected. A reseller can work in exchange for goods or a percentage of the sales in the form of trade credits. Startups can grow without investing in recruiting and training an in-house sales team.

  1. Personal selling

A reputed bartering network lets new and small businesses build contacts to barter the services or products they’re looking for. A network of service providers or customers can reduce the need for a separate team to meet the business needs. A business-to-business sales channel is common and frequently used. Regular customers, suppliers or service providers eliminate the risk associated with business dealings.

With a big barter network, everyone trades with everyone else, even if they do not want what the other person has to offer. For example, a small business trying to save its storage space by removing its obsolete inventory or non-merchantable products can have a buyer. The seller can offer discounts to get their hands off the items.

Preserves cash

Exchange of goods and services for barter can be done based on trade credits, instead of cash. That can be later utilized to buy something. These transaction receipts are listed on the barter networking system. Some networks also send monthly statements of the trade to the participants.

Startups generally end up with surplus production. New businesses incur substantial costs in hiring storage units or searching for buyers willing to negotiate the exchange. It also costs in terms of time and energy to find a mutual coincidence of needs. Barter networks are a boon for such businesses. This is because they provide a platform that allows trading of surplus stocks in exchange for other goods and services. This course of action helps a small business to preserve cash for more urgent and important issues.


The opportunities provided by bartering are virtually limitless. For example, many businesses barter their services for a billboard at prominent crossroads or advertising space in popular newspapers or TV channels. Barter networks can improve both public and professional relations in the long run.

Blog Categories


Recent Posts

Search Site
© 2012-2024    Contact   -   Privacy
magnifier linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram