Increase Cash Flow & Profits
Barter converts normal expenses from cash to trade transactions, which frees money for other purposes. Many businesses, particularly startups, use barter as a form of financing – they acquire key products or services without having to put down cash that they may not have. Every businessperson knows that business brings business. Many companies, large and small, have built themselves on word-of-mouth advertising only and will tell you that every customer you serve well will refer an average of 2 new customers. Trade customers do the same thing. In fact, the average referral from trade customers is 2.5 new customers. This is one of the ways in which trade businesses can build your cash business.
Advertising is one of the most popular uses of trade dollars because it builds cash business without spending cash. Advertising purchased with trade dollars is just as effective as advertising paid for with cash - it just costs less. And by using the leverage of the trade dollar discussed in “How Can Barter Increase My Purchasing Power?” you can get much more for your advertising dollar than by paying cash.