HOW SOURCE BARTER WORKS
Welcome to SOURCE BARTER, Your Partner in Business Development
- Your business sells its goods or services, and in exchange, your account is credited the normal retail value of the sale in trade dollars ($1 sold = 1 trade dollar credited).
- When you purchase goods or services, your SOURCE BARTER account is debited the normal retail value of your purchase ($1 purchased = 1 trade dollar debited).
- Only when you make a purchase, will SOURCE BARTER charge a performance based cash transaction fee of 12.5%. No sales commissions are paid when SOURCE BARTER brings you business!
- All barter trades are approved through SOURCE BARTER's trade floor with authorization numbers issued to the seller who completes a transaction slip for the trade.
- All SOURCE BARTER members are issued monthly statements, which itemize the prior month's trade activity.
Frequently Asked Questions
FAQ;S
Frequently Asked Questions
What Does It Cost To Join?
There is a one-time cash membership fee for small businesses (under 20 employees) of $495.00 There is also a one-time initial trade fee of $100, by which we simply debit your barter account $100 trade dollars. This means you agree to provide $100 worth of goods or services to the other members of the exchange. The reason we do this is to provide liquidity within the trade exchange. We must have trade dollars to operate and to offset the cost of mixers and the Holiday Trade Show, etc. You may easily earn those dollars back when we bring you new customers, or by providing referrals to our sales staff.
How Do I Get Paid For My Products/Services?
Each barter member has a trade account (similar to a combined checking and savings account). Each time you make a sale, we credit your account for the full value of the sale (at your customary retail price). When you make a purchase, we debit your account for the corresponding amount of the purchase.
Do I Need To Buy From the People I Sell To?
No. One advantage of the barter exchange is that it allows members to use trade dollars with any of the other members in the exchange. This gives you the opportunity to get what you need and to shop competitively. We encourage members to look for the best value the same as when they pay cash.
Are There Monthly Fees Involved?
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. These fees help cover monthly administrative costs for newsletters, new member updates, internet maintenance, etc.
How Is A Commission Charged?
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. Your monthly statement clearly details the 12.5% cash commission charged only for items you purchased.
What About Taxes?
The IRS treats a barter transaction the same as a cash transaction. We provide an IRS Form 1099-B to each member at the end of the year. The 1099-B lists the total dollar value of all products and services you sold during the year. Although your year-to-date sales is considered taxable income, when you make business related purchases you offset the tax liability.
Is Credit Available?
Yes. Credit worthy members can purchase goods & services in the exchange above and beyond the balance in their trade account. Depending on the size and type of your business you may qualify for a "line of credit." There is no interest or other charges - it is just another one of our many valuable benefits. You simply agree to earn those dollars back by actively selling to other barter members. The extension of credit is a valuable tool that benefits all members by promoting a higher level of trading activity throughout the entire exchange.