CLEVELAND BARTER CONNECTION QUARTERLY
cbc.thetradealliance.com
cbc.thetradealliance.com
A Little Background Info On Barter Exchanges and How They Work.
November 2018
THE CLEVELAND BARTER CONNECTION, - WHO WE ARE?
THE CLEVELAND BARTER CONNECTION is currently a group of of businesses ( over 3200 national members and just over a hundred .. and growing ... local Cleveland and Cuyahoga County members.
BY JEAN MURRAY Updated September 26, 2018
Back in pre-money times, businesses operated in a barter economy, where goods and services were exchanged freely, and money was not a medium of exchange. Those days have passed, but many business people still barter..
A modern way of bartering involves, of course, the internet and organizations that manage and control bartering between businesses and individuals. These systems are called barter exchanges. This is what CLEVELAND BARTER CONNECTION is . We are part of the nationally known TRADE ALLIANCE Barter Exhange. CLEVELAND BARTER CONNECTION is 1 of the 17 TRADE ALLIANCE brokers spread out across the USA. Our members of the CLEVELAND BARTER CONECTION are allowed to barter trade with over +3200 members currently with the TRADE ALLIANCE.
How Big Is the Barter Economy?
The International Reciprocal Trade Association (IRTA) says it's difficult to tell because most barter transactions don't get recorded. But the IRTA says barter is in the 12 to 14 billion dollar range. About half of this amount comes from traditional retail barter exchange companies ( like CLEVELAND BARTER CONNECTION ) and corporate bartering between Companies.
How Do Businesses Barter?
Barter is simply an exchange of goods and services between individuals, including businesses. The important thing to remember about bartering with other businesses is that the IRS considers barter taxable. So you must keep a record of your barter transactions, including any expenses you have related to these transactions and the income you have from these transactions.
Keeping track of barter transactions gets complicated if you are bartering with several individuals or businesses. This is where a barter exchange comes in.
What’s a Barter Exchange?
A barter exchange is an organization that serves as a third party to coordinate
THE CLEVELAND BARTER CONNECTION began operations in April 2018 and officially started to sign up members on June 1st of 2018. Our 2-year membership goal is to have 900 local Northeast Ohio merchants and business services as members by the Holiday Season of 2020.
THIS IS HOW TRADE BARTERING WORKS!!! NO MONEY
cbc.thetradealliance.com
barter transactions between members of the organization and as a bank to keep track of the value of barter transactions and the value of each member's account. Barter exchanges provide a monthly accounting for each member and yearend tax reporting of barter transactions. That’s what we do at CLEVELAND BARTER CONNECTION. Using our website www. cbc.thetradealliance.com as the control center, we serve as the help center on making barter trades, recording all trade transactions and keeping the accounting records accurate on reporting who has what in trade balances.
Barter exchanges are usually local or regional, and they have websites ( ours is www.cbc.thetradealliance.com) which list products or services for sale. If you buy products or services from exchange members, your Trade Account is debited;
if you sell products or services to other members, your account is credited.
Barter exchanges allow you to trade with more businesses. Many of these barters are not one-to-one. For example, an auto repair business may barter with a radio station that barters with a printer that barters with a delivery service. Most Barter exchanges charge an initial membership fee, a transaction percentage, and a monthly maintenance fee. Some barter exchanges also charge a monthly fee to "stock" the account, to encourage buying and selling.
WE DONT AT CLEVELAND BARTER CONNECTION! For an undisclosed time period, while CLEVELAND BARTER CONNECTION is growing it’s membership directory ( cont. on page 2)
November 2018 Page 2
If you’d like to learn more about how you can improve your cash flow by being a member of
CLEVELAND BARTER CONNECTION , contact US at 216-278-2129 Call 216-278-2129 Cleveland Barter Connection
LOOKING FOR A GREAT BUSINESS OPPORTUNITY THAT WILL BE A REAL MONEY-MAKER IN A FEW YEARS. LOOKING FOR BARTER TRADE REPRESENTATIVES FOR SPECIFIC AREAS ACROSS OHIO.
Cont. from Front Page - Barter Facts
The following will be the membership fees in place when joining CLEVELAND BARTER CONNECTION. As of Nov2018
..NO MEMBERSHIP SIGN-UP FEES ..NO MONTHLY MEMBERSHIP CHARGES TRADE TRANSCATIONS JUST 10% ON ALL BARTER TRADES TO BE PAID TO CLEVELAND BARTER CONNECTION VIA CREDIT CARD
( 8% - EX-OTA MEMBERS
Barter Exchanges: Local or Online?
Both. You can find a local barter exchange group for your local business. These groups have local events like mixers and Facebook pages so you can interact with other local businesses.
CLEVELAND BARTER CONNECTION QUARTERLY cbc.thetradealliance.com
trade over the entire TRADE ALLIANCE BARTER EXCHANGE.
How Taxes Work for all Barter Exchanges
Barter exchanges serve two very important tax functions for all members:
Record Keeping: Exchanges serve as the bookkeeper for barter transactions, which is helpful to the members. Exchanges use their own trade dollars, to bank (keep) money for businesses that don't have an immediate place to spend it. For example, let's say someone wants to barter with you for your consulting services. You can bank the barter dollars you receive, but you don't have to spend them immediately. If later you find you need a website done, you can use the barter dollars you earned earlier. Tax Reporting: At the end of each year, the barter service provides a record of the fair market value of all income you received from transactions, on a Form 1099-B. You will need to keep track of expenses related to your bartering transactions, to use them in your business tax return to offset barter income you have received. HOW CAN USING CLEVELAND BARTER CONNECTION INCREASE YOUR CASH FLOW?
Benefits to Buyers, Benefits to Sellers
In the old days your doctor might come to your house to deliver your new baby; and for payment you might give him a few chickens and some produce from your garden. No money exchanged Your local group may be a part of a larger hands, but the doctor was given items he online barter group, so you can barter with might otherwise have paid cash for. businesses in the U.S. and around the Today, we’ve moved to a currencyworld. As stated earlier, all CLEVELAND based society. Rather than getting the BARTER CONNECTION members can items or services we need in trade for trade with all ( Cont. in next column ) our efforts, we accept government issued currency. Government currency (aka money) represents a quantitative WELCOME MERKAL MATRESS TO value we have assigned to the delivery of CLEVELAND BARTER CONNECTION our labor or items we’ve sold. That currency can then be traded to someone KINGS QUEENS TWINS FULL MEKAL MATTRESS else (who has agreed to accept money) for the things we need. “ If we’re not low, we’re not MEKAL .... PERIOD! ” 12029 Lorain Avenue, Avenue Cleveland OH 44111 12029 Lorain Rd. Money has become the norm in repre216-331-0100 senting the value of what we buy and sell. We are so cash-driven in our society that we often do not think about the fact that it isn’t the money that is so imporAl Dargon tant, but the things we can purchase with 216.450.0297 the money. HOTEL LIQUIDATOR SPECIALISTS BEDS LAMPS BED FRAMES
END TABLES NIGHT STANDS BEDROOM SETS PICTURES
CASH FLOW RELIEF
MEKAL WE ARE MORE THAN JUST Emaka Iwenofu A MATTRESS STORE! 216-255-1395 HOTEL LIQUIDATOR SPECIALISTS
(OWNER)
Anyone who has been in business for any time has noticed there are peaks and valleys with cash flow in most businesses. We’re always looking for new markets and new ways to expose people to the products and services we offer. We’re also looking for ways to stand out from our competition so that consumers pick us over them.
COMPETITIVE ADVANTAGE
THE CLEVELAND BARTER CONNECTION isa great way to expand your audience and reach individuals and businesses you might not otherwise reach. For example, let’s say you are a chiropractor and there are 10 other chiropractors in your part of town. You need some way of standing out and being different. You also need a way to reach new clients. You can stand out by offering unique specialties or exceptional service, but there is one other way you can differentiate yourself and reach new nests of clients. CONSIDER JOINING THE CLEVELAND BARTER CONNECTION. CLEVELAND BARTER CONNECTION is a group of people who have agreed to accept “Trade Dollars” as currency instead of government issued money. As a chiropractor, you could offer your services on trade to the people who belong to the CLEVELAND BARTER CONNECTION and then receive “Trade Dollars” that could be used within the exchange to purchase other products and services. For example, let’s say there are 900 members who belong to CLEVELAND BARTER CONNECtION – all offering products and services of their own. You probably won’t need everything these people are offering, but that doesn’t matter. When those 900 people need a chiropractor and they see you’re the only chiropractor in their area who accepts Trade Dollars, they’re probably going to call you. You just gave yourself a competitive edge with 900 people. THINGS THAT CAN BE TRADED Let’s say there’s a printer, a hunting lodge, a women’s clothing shop, several restaurants and a transmission shop who belong to the CLEVELAND BARTER CONNECTION. You could offer your chiropractic services on trade to everyone within the barter exchange. When they purchase your services, you earn “Trade Dollars” that are placed into your barter exchange account. Later as you need items you could get some business cards from the printer, book a weekend at the hunting lodge to entertain high end clients,buy your wife a new wardrobe at the clothing shop, take clients or colleagues out to eat at the restaurant,get the transmission fixed on your car. All of this could be done without strapping your cash flow. This way you can save your cash for things like phone bills, internet services, credit card processing fees or other products and services that are not available on trade. You only pay a 10%cash fee when you make a purchase. It’s a small percentage of the purchase price. So you can earn all you want without incurring a fee. Not until you purchase something (which proves those Trade Dollars are really worth something to you). You pay the transaction fee that helps the CLEVELAND BARTER CONNECTION stay in business.
CLEVELAND BARTER CONNECTION QUARTERLY
If you’d like to learn more about how you can improve your cash flow by being a member of
CLEVELAND BARTER CONNECTION , contact US at 216-278-2129 Call 216-278-2129 Cleveland Barter Connection
LOOKING FOR A GREAT BUSINESS OPPORTUNITY THAT WILL BE A REAL MONEY-MAKER IN A FEW YEARS. LOOKING FOR BARTER TRADE REPRESENTATIVES FOR SPECIFIC
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3312 West 105th 216 862 9100
closed monday tues-thurs 11am-8pm fri-sat 11am-10pm sun 1pm-8pm
TAKE OUT
Cleveland, OH 44111
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NEED ADVERTISING in Northeast Ohio’s Hispanic community. We have the leading latino media tools that accept CBC trade trade dollars. Might be a great market to advertise to for the upcoming Holiday Season 2018 Spanish newspaper , radio and Tv !
WELCOME GREEN TECH COMPUTER TO CLEVELAND BARTER CONNECTION
cbc.thetradealliance.com
November 2018 Page 3
CLEVELAND BARTER CONNECTION Frequently Asked Questions Barter is an important financial tool that helps business owners build their client base and improve cash flow. Learn more about barter by reviewing the answers to frequently asked questions about the barter exchange CLEVELAND BARTER CONNECTION
Q. Why join CLEVELAND BARTER CONNECTION? A. The problem with the one-on-one trading that you are accustomed to is that each business owner must need exactly what the other has to offer. In the CLEVELAND BARTER CONNECTION barter network, everyone trades with everyone regardless of what the other person has to offer. A printer might not need the CPA he is printing for so he will use his barter dollars from the job to buy the advertising he needs. Trade Dollars are credited to a trade account with CLEVELAND BARTER CONNECTION, which can then be spent on any item or service needed or wanted from within the local network or nationally through the TRADE ALLIANCE .
Q. How does barter work within CLEVELAND BARTER CONNECTION? A. Members of CLEVELAND BARTER CONNECTION use Trade Dollars instead of cash to handle their transactions. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in CBC Trade Dollars credited to their CLEVELAND BARTER CONNECTION trade account. These Trade Dollars can then be used to purchase from the other trading clients within the TRADE ALLIANCE network and/or the local CLEVELAND BARTER CONNECTION network. CLEVELAND BARTER CONNECTION is a third-party record keeper, providing monthly statements to clients, which reflect their purchases, sales, fees and current barter balance.
Q. What does it cost to get started in the CLEVELAND BARTER CONNECTION? A. RIGHT NOW as we are a growing barter exchange picking up new local members everyday, there is a no membership sign-up fee no monthly administrative fee. Visit our sign up page for detailed information on our sign-up procedure. ( cbc.thetradealliance.com ) or call us at 216.278-2129
Q. How does CLEVELAND BARTER CONNECTION make money? A. There is a 10% cash transaction fee on barter sales and purchases. This represents a fee for generating new business for clients of our exchange network. Trade business provided is NEW business from NEW clients over and above your standard cash clients. Most business owners feel justified in paying a small percentage to acquire new business. This fee is CLEVELAND BARTER CONNECTION‘s main cash producing vehicle, necessary to keep the exchange operating on a financially responsible basis.
Q. How can one trade more profitably? A. Don’t limit yourself to worrying about one or two large one-time purchases. Look at your business checkbook for the last 12 months as a memory aid. Think too, of your personal needs. If you regularly take cash out of your company for living expenses like travel, home improvements, etc. why not take out barter income instead and save your cash for products and services that CLEVELAND BARTER CONNECTION may not be able to supply?
Q. Suppose I want to spend more than what is in my trade account? A. The standard policy is that you must have the CBC Trade Dollars earned in your CLEVELAND BARTER CONNECTION account from previous sales to cover all purchases. If and when credit is requested, it is handled on an individual transaction basis. All loans are subject to a small per month compounded interest charge on the unpaid balance and subject to the provisions in The Rules and Regulations of the CLEVELAND BARTER CONNECTION Exchange Contract Agreement and General Trading Policies and Procedures.
Q. How do I get started in CLEVELAND BARTER CONNECTION? A. Simply go the the Sign Up section of this website and fill out the form. A member of our staff will contact you to explain how you can become a member and get the most from your CLEVELAND BARTER CONNECTION membership.
Q. Who decides what prices the seller will charge on barter? A. Essentially, the market determines pricing just as it would for cash. The seller is expected to trade their goods and services at their full, fair prevailing prices. By accepting or rejecting prices, members are ultimately the determining authority in the pricing integrity. CLEVELAND BARTER CONNECTION keeps in constant contact with Members to monitor fair trading policies.
Q. Can I charge part cash and part trade? A. CLEVELAND BARTER CONNECTION is committed to 100% barter transactions so that all members of the exchange benefit. In some instances when parts need to be ordered, a cash component might be essential. In that case, CLEVELAND BARTER CONNECTION must approve the transaction in advance.
November 2018 Page 4
If you’d like to learn more about how you can improve your cash flow by being a member of
CLEVELAND BARTER CONNECTION , contact US at 216-278-2129
CLEVELAND BARTER CONNECTION QUARTERLY cbc.thetradealliance.com
LET’S GET YOUR BUSINESS INTO CLEVELAND BARTER CONNECTION STEP 1- GO TO CBC.thetradealliance.com
Call 216-278-2129 Cleveland Barter Connection
LOOKING FOR A GREAT BUSINESS OPPORTUNITY THAT WILL BE A REAL MONEY-MAKER IN A FEW YEARS. LOOKING FOR BARTER TRADE REPRESENTATIVES FOR SPECIFIC AREAS ACROSS OHIO.
STEP 2- sign-up box on the right side under Members
STEP 3- fill out info and we will send back an email with Approval upon our review
216-278-2129
CLEVELAND BARTER CONNECTION Randy Michael Berlinger - Broker