Why I Don't Barter My Services

I've seen a number of articles this week about how bartering products and services can help businesses save money. I strongly disagree.

Every now and then I get a request to "barter" for my coaching services. Usually, the person on the other end is offering marketing or administrative services, two things that I have paid for in the past and will no doubt pay for again in the future.

However, I turn down barter offers every single time. In fact, a few years ago I made it an ADD Management Group "company policy" to not barter services.

Here are the 2 very simple reasons why I don't barter my services, and why you should think twice about bartering in your business:

1. I don't value free or "bartered" services as much as I value the ones I'm paying for.
2. YOU (i.e. the person on the other end of the deal) doesn't value free or bartered services as much as you value the ones you're paying for.

Think about it... If I allowed you to attend for free, you might show up, and you might not. You might use the strategies, and you might not. What's the difference? You didn't pay for it. No skin off your back.

If you pay $197 to attend my Time Management Masters Seminar, you'll likely attend the sessions and do the work because, well, you paid for it, dammit! It's human nature to want to get your money's worth.

If your products and services are really worth something, then don't give them away. Charge for them, and then prove their value. If I need what you have to offer, I'll be more than happy to pay for it.

Comments

[Tina Forsyth]

totally agree!! ive tried the barter thing in the past and it NEVER works out. if someone really wants to barter i would say OK, how about I pay you and you pay me - done! as you say, the exchange of money has to happen to establish value.

i remember my husband (he's a computer geek) bartered with our massage therapist a few years back - dan would update his computer in exchange for a few massages. dan did the work, this guys computer had problems unrelated to the updates dan did but he was mad and wouldn't honor his end of the barter, etc. turned into a big ick all around and the relationship was done - biggest bummer was I had to find a new massage therapist! LOL

[Paul Copcutt]

Some great reminders Jen, I have nearly always ended up actually resenting the services I got in a barter deal, or you end up not using it all and then feel cheated - part of the value is paying for it.

[John M]

Bartering has a higher level of risk. If you are able to mitigate the risk it can help a business owner to save money. Bartering should be treated as a strategic alliance where you have established mutual trust and a mutual desire for the products or services you are barteting.

Random bartering that lacks the trust and mutual desire is just to risky for a business owner.