Create your Own Currency
Mainstreet Barter Associates
The whole world operates on a huge barter system. However, to keep track of the multi-party transactions that occur, the concept of money evolved. Today, money has become really nothing more than a “marker” of sorts.
In creating income without the use of money, one really talks about simply creating a different form of marker. However, it must be structured to assure the buyer and seller that their accounts are balanced … and to create some flexibility of matching what you can offer with what you need. Look at a little history.
Barter became prevalent during the depression years, at which time, the practice of issuing “due bills” evolved. In effect, a “due bill” noted an amount “due and owing” from one party to another. Resorts would issue “due bills” to radio stations in exchange for advertising. The radio station had a bill “due and owed” to them in “so many room nights” to equal the value of the advertising. This can also work for you.
Create a “due bill” or “marker” which can be transferred to another party. With this “marker,” you can trade your product or service to one party, then get what they have, or, their “marker,” and assign it to another party.
Sound complicated? It’s really not. Your “due bill” becomes your new currency. With this, no one directly needs to want what you have; you’ll have an inventory of “due bills” from people you’ve bartered with that you can now use to barter for what you want without a direct match.
Example, let’s say you want to trade maid service for dry cleaning. What if the dry cleaner doesn’t want a maid service, they want paint contracting services? With the due bill process, you’ll trade your maid service to a paint contractor taking back a due bill for painting services. You’ll use this to give to the dry cleaner that you wanted at the very beginning. The whole world opens up as you create your own currency. However, keep in mind, just as with the U.S. dollar, currency is only as good as the “faith” of the users. Make sure you deal with reputable people. If you’re due bills don’t live up to their warranties, then your currency becomes worthless and you’ll be out of business!
Let’s take a look at some of the aspects of a due bill that will ensure you’re currency will be clearly understood
This sample “due bill” outlines some of the essential elements in completing a barter transaction. The issuance of such a document should ensure the buyer and seller of how, and under what terms, their transaction will take place. Additionally, since the due bill is redeemed by “any bearer,” the document could be transferred or assigned. This then becomes a form of currency which could be utilized as payment for almost anything, to anyone. (Did you know that just prior to the civil war, there were more than 10,000 private currencies that existed in the U.S.!)
Special Note: The key to an effective and complete transaction will be based on a clear definition of the product or service to be transferred.
EXAMPLE: “A one time home cleaning service to include vacuuming all carpeted areas, window washing, dishes cleaned and put away, etc. between the hours of 8-5 weekends only’… … in exchange for a due bill which states “car repair to include a tune-up, with all new parts, labor, and lubricants to include oil, grease, etc … .’
A second form of due bill might be a gift certificate as those issued by many retailers. Again, the key element is that the terms and conditions for usage are clearly spelled out. Because gift certificates are widely used, transactions with businesses that issue their own certificates will be most receptive to your barter transaction. Additionally, most certificates are for “retail price only, no change is given. National averages indicate that only 85% of all certificates are redeemed prior to their expiration date. This will result in added value to you since some of your due bills may never be redeemed.
One final note on paying through barter … even though dollar value certificates or fair market value is established in a due bill, most trades will not equal. The paint contractor may cost $1,000 and they don’t want that much maid service … or anything else that you might procure through bartering your service. “Cash is King” are the watch words to complete any transaction. This means that one must always consider enhancing a trade with cash.
EXAMPLE: “How about if I pay cash for the paint but trade for your labor? Assuming the painter has no out-of-pocket expense, the transaction becomes more interesting because they’re only trading their time.
All businesses and individuals want as much cash as possible … you want as much barter as possible in order to conserve your cash. Somewhere in the middle, there’s a match. As you negotiate with multiple sources for what you need, start out with 100% “trade for trade,” then go from there.
You might use the following guidelines:
1. 100% trade
2. Enhanced or ratio trade, i.e. 125% of my product for 100% of yours.
EXAMPLE: 5 hours ($500 of maid service value) for $400 of painting services.
3. Out of pocket expenses in cash; all labor is done full barter.
4. The last resort: If you can’t negotiate a barter transaction, at least negotiate a discount on their services for a future discount on yours!
Would you like to learn more about creating your own currency? Would you like to get what you want with what you have? Would you like to learn how thousands of businesses and individuals are saving cash by bartering?
Take the next step. Invest $9.95 and you’ll learn all of the secrets of this financial tool. In a few hours, you’ll be on your way to buying a multitude of things you need, all without cash. This will be THE most profitable $10 you’ll ever spend. Go to www.mainstreetbarter.com and start saving your cash TODAY!
Sample Due Bill
To whom it may concern:
Let this letter serve and acknowledge that (YOUR NAME) owes (SELLER’SNAME) (AMOUNT) worth of (DEFINE YOUR PRODUCT OR SERVICE – BE VERY, VERY CLEAR).
This due bill may be redeemed upon demand by the bearer in accordance with the description of the above product or service.
Conditions of Usage
No special discounts apply. No change will be given for an unused portion. All overages will be paid in cash. All applicable taxes must be paid in cash. Use of this due bill will expire in full on (date).
Agreed to by: _________________________________________ (Seller)
Agreed to by: _________________________________________ (Buyer)
Witnessed by: ______________________________________ (Witness)
Transferred by: __________________________________ (Transferor)
Transferred to: __________________________________ (Transferee)
Witnessed by: ____________________________________ (Witness)