Bartering Grows as Economy Slows

September 14, 2009

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featured_barter

Wanted: Dog groomer to primp cockapoo's curly locks.

Will Trade: More than 10 years of graphic design experience and great logo and advertising designs.

So the barter went - all skills, no cash, no problem.

In today's sluggish economy, many graphic designers are finding both professional and economic benefits to bartering goods and services. They claim the age-old system of trades is a great way to get the resources they need by offering their talents instead of cash.

"Programs like Creative Swapping (www.coswap.com) are an excellent tool for getting that design you perfected or segment of code that you built but didn't use out there for someone else to put to good use," comments Douglas Brull, a graphic design instructor at The Art Institutes International Minnesota.

Craigslist, which features online classified ads including those for bartering services, has reported an increase in trading offers recently. A Craigslist spokesperson says that the number of bartering ads on the online network has more than doubled in the past year.

"With the economy the way it is, people are more open to bartering or stepping out and doing transactions in ways that are not traditionally how they are done," offers Rivkie Stall, a Passaic, N.J.-based graphic designer who has bartered her graphic design services.

One downside, Stall says, is that bartering does not provide the cash flow that businesses need to survive.

Even so, many designers find that trading through online classifieds and internet bartering websites gives them a better chance to find a perfect barter match in a timely and straightforward manner.

"I bartered my graphic design work with a dog groomer," Stall tells. "I offered to design a logo, business card and some newspaper ads for her in exchange for grooming my puppy. I was able to get her dog grooming services in exchange for my design services and neither of us had to lay out cash."

Stall says bartering is also a good way for both experienced and new designers to network. "Bartering can also become lucrative because the networking is a side benefit," she explains. "You never know if that person or business who isn't paying cash now will need something down the road that they will pay you cash for.

"For someone who is branching out, you can say you are just starting out and would like to gain more experience by offering designs for services," she adds.

While swapping can be a way to gain design experience, it is important to remember there are tax implications regarding bartering. According to the Internal Revenue Service's website, "the internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met."

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