Frequently Asked Questions
What is online barter & trade?
It is a way of exchanging goods and services online with other small businesses without the use of cash. You can buy what you need and pay for it with inventory you have or services you can offer.
Why barter and trade as a member of an exchange network?
The two most important reasons are cash flow and new business, both of which are highly important to any small business owner. As an active member of Pro Trade Xchange, you can develop relationships with new colleagues in the small business world, which will quickly expand your new client list. Also as an active member of Pro Trade Xchange you can quickly ease the strain on your cash flow. Instead of spending your precious cash reserves for goods and services, you can barter your own goods and services to build up your trade account. Then use your trade dollars to make your purchases from other Pro Trade Xchange members. Put simply, the less cash you spend, the better your cash flow. Plus, barter puts excess or idle resources to work. Use excess time, inventory and capacity to gain trade dollars that are converted into profits. As the old saying goes, A Penny Saved Is a Penny Earned.
I already trade on my own. Why join Pro Trade Xchange?
The problem with one-on-one trading, is that each business owner must need exactly what the other has to offer and they both must need or want a trade at exactly the same time.With Pro Trade Xchange, everyone trades with everyone inside the network for trade currency, even if they do not want what the other person has to offer. When you sell an item or perform a service for someone in the network, you get trade dollars. Trade dollars are credited to your trade account, which you can use at any time, on any item or service you need or want from within the network.
So exactly how does online barter work with Pro Trade Xchange?
You use your trade dollars, instead of cash to pay your transactions. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in trade dollars in their account which can be used to purchase anything from the other trading members of Pro Trade Xchange. Pro Trade Xchange operates and maintains the trade network as well as maintaining member accounts and providing monthly statements to all clients which reflects all purchases, sales, fees and current trade dollar balance.
What about taxes?
There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes. Trading should be considered a marketing and cash flow tool, not a tax tool. As with cash income, however, trade purchases that are business related are also tax deductible.
How do I know how much barter income to include on my tax return?
At the end of the year, Pro Trade Xchange totals all your sales and purchases using our service. Purchases and fees qualify as expenses and Pro Trade Xchange totals your barter sales and submits this information to the IRS on the 1099B. You are also mailed a copy of this form for your records. You will find a line on your tax form for bartered income.
Who decides what price the seller will charge on barter?
Pricing integrity is to be maintained as if being sold in a fair market. The seller is expected to trade their goods and services at market prices. Pro Trade Xchange members are the determining authority in the pricing integrity. Pro Trade Xchange brokers keep in constant contact with members to monitor pricing and make certain the members are maintaining fair pricing. We encourage any member to report any unfair pricing. Keep in mind, making fewer trade dollars on the sell means fewer trade dollars for purchasing. Discounting is a necessary evil in the retail world but is of little to no advantage in online barter & trade. THE MARKET SETS THE PRICE. Failure to maintain pricing integrity and unfair sales practices can result in account suspension.
Can I charge part cash and part trade?
Transactions made through Pro Trade Xchange are 100% trade on the first $2500 of each transaction. The Purchaser is at liberty to pay cash on any transaction amount that exceeds $2500 for that transaction. The Seller cannot, however, request cash for any transaction. If a transaction exceeds $2500 and the purchaser has sufficient trade dollars for the transaction, as the seller, you must accept the trade dollars as total payment. As a member you are never obligated to make a trade with another member for trade dollars. However, if you decide to accedt trade dollars we hope you follow these guideines.Keep in mind that the Pro Trade Xchange store is for trade items only. If you list an item on the store, you are informing the network members that you wil accept trade dollars as payment for that item. IF YOU ENCOUNTER ANY MEMBER REQUESTING CASH FOR AN ITEM LISTED ON THE STORE, NOTIFY PRO TRADE XCHANGE IMMEDIATELY.
How do I get started?
You can get started online right away. Simply click "Get Started" or contact us either online or by phone. A Pro Trade Xchange broker will meet with you to discuss full details of your membership and the products and services your company offers. After becoming a member we will help you get started and we will get started right away promoting your business on the network, to make sure you get the most of being a member of the trade network. Keep in mind, any time you need help or have questions, we are always there.What does it cost to become of member of Pro Trade Xchange?
There is an initial one time membership fee and a small monthly account fee. As a member you will receive all the latest news, updates, and tips from Pro Trade Xchange to help you increase your business and profits through the use of trade. Also, you may be eligible for discounted fees if you are the first member in a category.
What does it cost to conduct trade online?
There is 5% transaction fee on sales and purchases. For sales, consider this a fee for generating business that is above and beyond your cash business. As cash sales are generally made below retail and barter sales are not, often your increased profit is greater than the transaction fee. For purchases, consider this a means of giving your cash flow a positive push. You may be purchasing $1000 dollars worth of goods or services, but your cash cost is only $50. It is important to remember that it costs far more than this to attract even one new cash customer. By increasing profits through increase in cash flow as well as increased customer base through referrals from fellow members, your overall sales and profits can increase exponentially. This fee represents Pro Trade Xchange's main source of income, necessary to keep the exchange operating effectively and financially responsibly.
What if I need goods or services that are not offered by any fellow members of Pro Trade Xchange?
We at Pro Trade Xchange understand that our exchange service is only as good as the members we have. That is why we put so much faith in the members we have and we strive to make certain we have top professionals in every category of business. However, when Pro Trade Xchange does not have a source for something a member needs, we immediately locate and try to recruit vendors who can supply that product or service.
What if I refer a new member?
If a current member refers a vendor that becomes a member,that member will receive a $100 recruitment bonus that will be deposited directly into their trade account. Recruiting new members takes time and money. Consider it a way of bartering services directly with Pro Trade Xchange and our way of saying thanks to our members. Certain conditions apply so check with your broker for specific details on recruitment bonuses.
As a new member, does Pro Trade Xchange offer advice on how to trade more profitably?
Yes. First, Pro Trade Xchange will help you analyze your average yearly expenditures. From there we can help you conduct trade more effectively. More often, it is the numerous small purchases throughout the year that crunch your cash flow; more so than the few large purchases. Converting these small purchases to trade can really take the strain off your bank account. Also, instead of taking cash out of your business, take trade dollars. Use your trade dollars to buy personal items instead of cash. Save your cash for things you cannot trade for.
I need a new garage door opener for an overhead door in my warehouse. Should I save my trade dollars to make this purchase?
Saving trade dollars is fine (in certain circumstances) but not always recommended. If you are trying to save your trade dollars in order to purchase a specific high ticket item, you may become frustrated or discouraged. An item may not be available when you finally save enough money and you may be doing without something you need while you save your trade dollars. We recommend that you use your trade dollars to pay for regular expenditures based on your expense analysis. This helps you build your cash reserves for those unforeseen expenses that always seem to pop up.
Are there other ways to use by trade dollars?
Yes. Use trade dollars to pay employee bonuses. We can even set up secondary accounts under your account for employees that they can spend at their leisure.If you have an outstanding accounts receivable or accounts payable with a vendor, talk to them about becoming a member of Pro Trade Xchange. If they become a member you can immediately exchange trade dollars to resolve the unpaid cash debt. Also, as a referral both are eligible for a credit under the new member referral program.
What if I need to make a purchase and have not gained enough trade dollars?
Generally, you must have enough in your account to cover all purchases. However, credit can be issued on a limited basis to those who qualify. All loans are subject to a 2% monthly interest rate charged in trade dollars on any negative balances carried over 30 days. As well, no new purchases can be made on an account with a negative balance. Put simply, the idea is to keep all the members of the exchange actively trading. As a new member, obviously you have to start somewhere. Pro Trade Xchange issues a credit based on the goods and services you offer, to get you started. You will receive a 90 day interest free grace period on this initial credit even if you make purchases with it.
What if I choose to terminate my membership? What happens to the trade dollars in my account?
If you wish to terminate your membership with Pro Trade Xchange, a written notice is required stating your termination date 60 days prior to that date. Upon your termination date, you may no longer sell goods or services on Pro Trade Xchange. You will be mailed a final statement for your transactions fees including pending transactions fees on purchases made with your account balance. Your transaction fees would need to be paid in advance. You then have 90 days to spend out your balance.
