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What You Need To Know To Make Sense of Business Bartering

What You Need To Know To Make Sense of Business Bartering

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    Bartering, trading one good for another, is becoming increasingly popular as the value of the dollar continues to plummet. There are several bartering systems available online (some better than others) and activity on these web sites has increased as the economy has gotten more and more troubled. However, when you move into cashless economies, it’s easy to get sucked in. Here are a few things you need to know to make it work for you.

    1. Use an established bartering system.

    Bartering on your own is often fraught with difficulties. Establishing “what’s fair” is rarely easy, especially if you’re the guy who charges $100/hour and you’re negotiating with someone who charges substantially less. One hour isn’t always equal to one hour, and that’s not always an easy concept to explain.

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    Instead, use established systems that operate with their own version of “dollars” and have structures in place to ensure that everyone follows through on their end of the bargain. The way these systems work is that you join the system and let people know what you have to offer. People use dollars they already have in the system pay you for your products or services. Then you use your system dollars to pay for products and services that you need.

    2. Use bartering systems as a marketing tool.

    Bartering systems can act as a solid marketing tool for your business, when used the right way. People already in bartering systems have dollars that have to be spent in the system. So you’re entering a marketplace of willing investors.

    Plus, people tend to look at these dollars slightly differently from “real dollars” and are more willing to spend them. Bring the right product or service into the system, and you could introduce your product or service to a large group of willing buyers very quickly.

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    3. Avoid getting too heavily invested.

    One thing you want to avoid is getting too heavily invested in any bartering community. If there’s something in the system that you really need and would have invested in anyway, this can be a good way to obtain it. However, you can’t guarantee the quality of the professionals in the system. Just because they’re in the system doesn’t mean they’re the best ones for the job.

    And let’s face it…your mortgage company and the utility companies probably don’t accept bartering dollars. You need real dollars for the real world, and bartering dollars just don’t transfer.

    4. Spend your bartering dollars right away.

    There’s another truth about bartering dollars, and that’s that all of these bartering systems are businesses that are owned by someone. In this uncertain economy, companies go out of business in the blink of an eye. So make sure you don’t leave your bartering dollars in these systems for long. Spend your dollars quickly, just in case, so you don’t have thousands invested in this system that could drop off the face of existence without any warning.

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    5. Transition bartering relationships to cash relationships.

    When clients ask me about entering into bartering systems, I advise them to keep their offerings to introductory services only. Figure out which services frequently act as a “point of entry” to your business and offer those as barters, then convert your bartering clients into cash-paying clients as quickly as possible to avoid getting too heavily invested in the long-term.

    And, make sure you don’t get behind the eight-ball on any transaction — don’t offer to barter for something you yourself have to pay real dollars for.

    6. Prepare for taxes.

    Finally, don’t forget that the IRS views bartering dollars as exactly the same as real dollars. Earn a dollar in a bartering system, and you’ll still have to pay taxes on that money in real dollars later. Plan accordingly!

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    Bartering can be a great way to market your business and gain new clients and trade for services you need for your business. However, there are pitfalls. Plan ahead, avoid being too heavily invested, and transition barter clients into cash-paying ones, and you can benefit greatly from these systems.

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    Susan Baroncini-Moe

    Susan Baroncini-Moe is an executive coach and business leader with over sixteen years’ experience.

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    Last Updated on September 28, 2020

    How To Study Effectively: 7 Simple Tips

    How To Study Effectively: 7 Simple Tips

    The brain is a tangled web of information. We don’t remember single facts, but instead we interlink everything by association. Anytime we experience a new event, our brains tie the sights, smells, sounds and our own impressions together into a new relationship.

    Our brain remembers things by repetition, association, visual imagery, and all five senses. By knowing a bit about how the brain works, we can become better learners, absorbing new information faster than ever.

    Here are some study tips to help get you started:

    1. Use Flashcards

    Our brains create engrained memories through repetition. The more times we hear, see, or repeat something to ourselves, the more likely we are to remember it.

    Flashcards can help you learn new subjects quickly and efficiently. Flashcards allow you to study anywhere at any time. Their portable nature lends them to quick study sessions on the bus, in traffic, at lunch, or in the doctor’s office. You can always whip out your flashcards for a quick 2 to 3 minute study session.

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    To create effective flashcards, you need to put one point on each flashcard. Don’t load up the entire card with information. That’s just overload. Instead, you should dedicate one concept to each card.

    One of the best ways to make flashcards is to put 1 question on the front and one answer on the back. This way, you can repeatedly quiz yourself into you have mastered any topic of your choice.

    Commit to reading through your flash cards at least 3 times a day and you will be amazed at how quickly you pick up new information.

    As Tony Robbins says,

    “Repetition is the mother of skill”.

    2. Create the Right Environment

    Often times, where you study can be just as important as how you study. For an optimum learning environment, you’ll want to find a nice spot that is fairly peaceful. Some people can’t stand a deafening silence, but you certainly don’t want to study near constant distractions.

    Find a spot that you can call your own, with plenty of room to spread out your stuff. Go there each time you study and you will find yourself adapting to a productive study schedule. When you study in the same place each time, you become more productive in that spot because you associate it with studying.

    3. Use Acronyms to Remember Information

    In your quest for knowledge, you may have once heard of an odd term called “mnemonics”. However, even if you haven’t heard of this word, you have certainly heard of its many applications. One of the most popular mnemonic examples is “Every Good Boy Does Fine”. This is an acronym used to help musicians and students to remember the notes on a treble clef stave.

    An acronym is simply an abbreviation formed using the intial letters of a word. These types of memory aids can help you to learn large quantities of information in a short period of time.

    4. Listen to Music

    Research has long shown that certain types of music help you to recall information. Information learned while listening to a particular song can often be remembered simply by “playing” the songs mentally in your head.

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    5. Rewrite Your Notes

    This can be done by hand or on the computer. However, you should keep in mind that writing by hand can often stimulate more neural activity than when writing on the computer.

    Everyone should study their notes at home but often times, simply re-reading them is too passive. Re-reading your notes can cause you to become disengaged and distracted.

    To get the most out of your study time, make sure that it is active. Rewriting your notes turns a passive study time into an active and engaging learning tool. You can begin using this technique by buying two notebooks for each of your classes. Dedicate one of the notebooks for making notes during each class. Dedicate the other notebook to rewriting your notes outside of class.

    6. Engage Your Emotions

    Emotions play a very important part in your memory. Think about it. The last time you went to a party, which people did you remember? The lady who made you laugh, the man who hurt your feelings, and the kid who went screaming through the halls are the ones you will remember. They are the ones who had an emotional impact.

    Fortunately, you can use the power of emotion in your own study sessions. Enhance your memory by using your five senses. Don’t just memorize facts. Don’t just see and hear the words in your mind. Create a vivid visual picture of what you are trying to learn.

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    For example, if you are trying to learn the many parts of a human cell, begin physically rotating the cell in your minds eye. Imagine what each part might feel like. Begin to take the cell apart piece by piece and then reconstruct it. Paint the human cell with vivid colors. Enlarge the cell in your mind’s eye so that it is now six feet tall and putting on your own personal comedy show. This visual and emotional mind play will help deeply encode information into your memory.

    7. Make Associations

    One of the best ways to learn new things is to relate what you want to learn with something you already know. This is known as association, and it is the mental glue that drives your brain.

    Have you ever listened to a song and been flooded by memories that were connected to it? Have you ever seen an old friend that triggered memories from childhood? This is the power of association.

    To maximize our mental powers, we must constantly be looking for ways to relate new information with old ideas and concepts that we are already familiar with.

    You can do this with the use of mindmapping. A mind map is used to diagram words, pictures, thoughts, and ideas into a an interconnected web of information. This simple practice will help you to connect everything you learn into a global network of knowledge that can be pulled from at any moment.

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    Learn more about mindmapping here: How to Mind Map to Visualize Your Thoughts (With Mind Map Examples)

    Featured photo credit: Alissa De Leva via unsplash.com

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