by Kevin Mcinturff

Created on: October 11, 2008   Last Updated: October 20, 2008

It seems now that money is tighter than ever. With the credit crunch and the downturn in the markets, people need to be more creative just to make ends meet. Perhaps now is the time to bring back the time honored tradition of bartering.

Bartering is simply the method of exchanging one good or service for another good or service. During the Depression of the 1930's bartering was in widespread use. For example, everyone knows the story of how the doctor would make a house call and then receive a hen as payment. I am sure that physicians ate a lot of fried chicken in those days!

Of course, bartering today is much more efficient due the internet. There are a variety of online sites such as Craig's List with allow members to buy, sell or trade any kind of item. While each site has a specific method, the basic premise is to register with the site and set up an account. Afterwards, you may put up items for trade or barter. Other members will contact you via e-mail or through your account to make a trade. Once everyone agrees to the terms, items may be shipped to each person.

The thing which makes this work is trust. It is important to honor your agreement even if you find a better deal. However; if you are in the process of negotiating a trade and you do not feel comfortable, then feel free to decline.

For small business owners, online bartering can be a huge help in eliminating excess inventory while gaining other needed supplies or services. Also, many bartering exchanges offer "trade dollars" which work like cash within the trade group. You offer an item and receive trade dollars which you may use to purchase something else. The best part is that you may buy and sell without paying any taxes.

So with the popularity of online bartering there is a great opportunity to exchange anything you have sitting around for something you just have to have. In fact, the latest idea in bartering is trading houses. With online bartering, the sky is the limit.

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