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Bartering
Concept Within a family, club or close group you may all do favours for each other and all benefit from the help available. While in concept we could all just help each other and make sure that we played our part, didn't miss our round and put in as much as we took, in practice life is rarely that simple. Often for example its not the same people that you want help from, who you have helped.To overcome the inequality of input and receipts by different members, barter clubs keep records of the favour points, and issue each member with a set number each month for a fee that covers the cost of administration. Most barter clubs have found that they also need to make extra barter points available for a fee, just to keep the system running and allow some people with uneven or temporarily uneven demands to participate fully. As these favour units, whatever they are called have zero value outside the group, they are usually not taxed or treated as income. All members therefore benefit from helping each other, and no one gets taken advantage off. In many ways so far, this is no different to normal business. In any transaction a deal is done, you provide or do something for someone in exchange for a reward, the currency or form of this reward may vary. The second plank of bartering systems is reputation and anyone who has used ebay will be familiar with the value the members put on maintaining a high approval rating. Similarly barter clubs can have a reputation scoring part, so that everyone knows that you are doing a good job as agreed, and problems can therefore be avoided. Getting a job done is no longer a lottery and the member who wants a single job done now gets the same service as the person who is going to come back, time and again. The third plank of the barter club is that of belonging to a privileged group that will not let each other down and often go to extreme lengths to make sure that any member in need is helped. The fourth plank is the marketing advantage, people who have bartering units are perhaps more inclined to spend them, than the same amount of cash. The fifth plank is that bargains can also often be sourced and special deals of all types made available to members. The concept is of a central exchange, which will allow transfers not only in barter units but in other currencies as well, this just transfers balances around. A second exchange attached to it allows barter units to be bought and sold on the open market to members, and a closed section does the same but at contract rates. The clubs will obtain new barter units to issue to members through the contract side at a discount, and they and some others will also be able to feed surplus barter points back through this contract side, so new units are only issued when there are not enough in circulation to meet needs. Some people or entities will be given trading status with the barter units to allow more dealing in them, for example they could buy up surpluses on the open exchange and sell them back through the contract side. As other sections will be able to be added to the central exchange other services such as currency conversion across currencies can be contracted to a service provider or trader. Therefore the barter currency can go around the system, encouraging inter-trading, making transactions possible with no cost attached and opening up a wide range of other advantages both to members and the consortium's and clubs. Next - benefits of bartering |
New Atlantis International Services Corporation is a limited
company registered in Belize
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