1. When your business sells its goods/services in the exchange your BNI account is credited the fair market value of the sale in trade dollars.
2. When you purchase goods/services you need your BNI account is debited the fair market value of your purchase.
3. BNI's transaction fee of 12.5% is based on your purchases only - no sales commissions are paid to BNI when BNI brings you new business.
4. All barter trades are approved through BNI's trade floor - authorization numbers are issued to the seller who completes a transaction slip for the trade.
5. Monthly statements are issued to all BNI members which itemize the prior month's barter trade activity.
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BARTER MADE SIMPLE
To make a trade purchase, the buyer calls the Trade Floor for a referral to the appropriate seller. The buying member contacts the individual he is referred to and identifies himself as an exchange member. From this point on, the transaction is the same as a cash purchase except that at the point of sale, the Trade Floor is contacted for an authorization number. When the authorization number is issued, the transaction is complete. The buyer's account is debited and seller's account is credited. Each transaction you make is individually posted to your account so you can easily review who you bought from or sold to. Each month, BNI will issue a computer statement which lists all transaction. And it keeps a running balance of your account. With BNI, you know exactly where you stand at all times.
Barter Network's system works for the individual member because you, not the exchange, control the amount and timing of any trading that you do.
We believe the amount of trading that you do should be in direct proportion to your purchasing needs and the availability of those items in the system. However, since the number of members at any given time is fixed, the number of suppliers of a particular product is also fixed. But, since most people have ongoing and varied purchasing needs, there are always alternate uses for your Trade Dollar. We do, however, encourage members to temporarily suspend selling if, after securing a working balance, they are selling faster than they are purchasing.
The bottom line is this. BNI works closely with each member to ensure that you are trading at a level that is comfortable and advantageous to your business. However, the decision as to how much trading and when to do it is always up to you.
The IRS views barter transactions as cash
transactions. Trade dollars earned through the sales of
your goods and services are considered revenue. However,
when you buy business related goods and services
for your business with your trade dollars, such expenditures
are viewed as business expenses and will offset a like amount
of trade dollar revenue.
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5 STEPS TO SUCCESSFUL BARTERING
1. Call your broker once a week with a "grocery list of your needs."
2. Call your broker for purchase options & availability when considering any purchase.
3. Be flexible with your needs, the barter exchange's supply and availability of goods or services fluctuates on a regular basis.
4. Call your broker when you need a particular item that may not currently be found in the directory- the exchange will try it's best to get it for you.
5. If called by someone who is considering joining BNI, promote the benefits of the barter program. More members make it easier for all of us to spend our trade dollars.
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