I have bartered service-for-service and product-for-product and a mix of the two in the past. I bartered for the same reason everyone else does. I’m short on cash and long on skills.
On the surface, bartering seems like a win-win. I get what I need for nothing but the work of my hands and my bartering partner gets the same.
Dig deeper. Under that well-meaning surface, a barter is never truly equal. It also devalues the work of everyone involved by putting a $0 price tag on anything that’s bartered.
There’s also a scarcity mindset that’s involved when bartering—that is, the mindset that believes that there isn’t enough for me, that I’m powerless to do anything about the amount of money I have now and will ever have. I’ll let Dave Navarro handle that one (see Breaking out of the scarcity mindset after you’re done reading this post).
What about having a bartering agreement written up and signed by both parties?
Well, I’ve done that too. And it works slightly better than just a handshake (virtual or otherwise) agreement. At least here, both parties know exactly what to expect and when the agreement is complete, which limits the unfairness.
But it’s still bartering.
Because of the gut-wrenching thing I’ve experienced with this last barter agreement, and based on the advice of someone who’s been doing this thing longer than I, I have come to the conclusion that all bartering sucks and I will not barter with anyone anymore.
Sure, some of this is colored by my recent experience, and I have had a few good bartering experiences, but I think it’s one of those things that will hinder your chances at success if you’re running a business.
I’m sticking to it. No more bartering for me.
Bartering ends up being unequal, and someone ends up short.
Unfortunately the way it works out is someone (or both) feels like they got the short end of the stick. Because perspective is crazy that way.
Or one person does their thing and the other one never follows through.
Major suckage on both ends.
Here’s what happened recently: Because I have a nasty perfectionist streak and because I offered to do something I wasn’t 100% experienced in, I worked over double the initial time agreement, and found myself doing extra things that weren’t mentioned in the beginning. I was most definitely the receiver of the short end.
Bartering takes money completely out of the equation, and relies on both parties giving something away for free.
In this way, bartering devalues the work of all the people involved.
Even if you’re bartering based on equivalent value and it’s written down digitally or otherwise, it still devalues each party’s work.
In a barter, my work and your work is essentially free. And no one values free. Even if it’s an equivalent exchange.
If you insist you value free stuff, take a look at how many ebooks and white papers you’ve downloaded. Have you read them all? You probably even have things you’ve bought for cheap (i.e. a $15 ebook) that you haven’t even bothered to open.
I am convinced that if I had been paid the full amount I usually charge to do everything I did for this particular barter, this whole thing would have gone more smoothly.
I would have had a contract that spelled out my responsibilities and once those were complete, I’d be done. Any more work would have to cost more money. And possibly I would have a bit more respect from that bartering partner because it would be a professional arrangement spelled out clearly.
I’m also convinced that if I paid for what my bartering partner has offered, even if she paid for my services and I turned around and handed her that same amount of money back to pay for her services, the energy around this whole agreement would be better. Cleaner. Happier.
The exchange of money is sort of magical.
I’m not big on the whole “universal energy” thing or karma or whatever, but there’s something almost magical when money is involved in a transaction.
The person paying values a thing and the person who made/did the thing more than she would if she got it for free.
The person getting money in exchange for their thing is properly compensated for the hard work she did.
Both people are satisfied with the transaction, no one’s hurt, and no one can take advantage of the other.
No matter how you may rail against it, money is important when determining value.
I have no patience for people who say that money’s not important. It is. We left the bartering society behind a long time ago and money is what we have to work with.
The exchange of money, like it or not, is a reflection of how much you value yourself, your work and the person you’re buying from.
I value my work and my time. And I value the people I work with.
In requesting payment for my work and paying others for their work, there’s some energy thing that happens. It’s a good energy thing. And I prefer it to the uncertain muddy stuff I’ve been slogging through the past few months.
Twitter version: Bartering will suck the life out of you, keep you broke and heap bad mojo on you. So don’t do it. Pay for what you want.
Feel free to leave your comments below. Have you ever had a barter that went sour? What about good experiences?
photo credit: Andres Rueda
I don’t barter much but when I do I keep track of my time just as if it were a paid job. At the end, I present an invoice and ask for a return of services to equal the amount of my invoice. I guess I’ve been fortunate that it’s always worked well.
I totally get what you are saying though and will definitely be more careful when bartering in the future.
I’ve done this so many times myself, it’s no wonder I’ve not made any money. I am going to join you in your No More Bartering commitment!
@Misty – I’m not saying Bartering can’t “work” – I’ve had a few that did, and I was satisfied with the results. But taking into account the scarcity/poverty mindset and how you’re essentially giving your work away from free, I can’t justify doing this anymore.
@Jane – welcome to the club
Really well said Alexia. You know I’ve been there too (on both sides – like you), and I came to that very same conclusion.
And you know… there is nothing more exciting than getting paid for what you love doing. It also makes you want to work harder and do more of what you love doing when you get paid.
Great blog!
*Jared
Lordy, lordy could I write a book on bartering… I suppose I could summarize and say “DON’T DO IT”.
I have bartered out thousands of dollars in work with no return whatsoever. People conveniently forget. It has never worked out equally for me. So I don’t do it. I simply say this “I don’t work for free and neither should you.”
You seriously can never do an equal barter because everyone’s perception of time and value are different. It is easier to pay and get paid.
If I had just a dime for every dollar lost in barter….
However, I will say it is typically a lesson we learn by doing and losing…
@Jared – You’re right. There’s that energy—the excitement and sense of accomplishment that comes from getting paid
Thanks so much for chiming in here, Yolanda! Sorry about the crappy barter partners. That *really* sucks
Okay, I’ll pipe up and disagree.
Bartering does not have to be an unequal exchange. If someone feels slighted, you’re doing it wrong. You have to be very clear about what you’re trading and agree on the value.
If your barter partner doesn’t follow through, you’re bartering with the wrong person. You shouldn’t barter with just anyone, and you shouldn’t feel obligated to barter with someone if they don’t have exactly what you need.
If you’ve agreed to barter a skill that you don’t really have, but you based the exchange on a metric related to how long it would take an experienced person to do whatever it is, that’s your fault. That’s not a result of barter being across-the-board “bad.”
Bartering is not “giving away something for free” unless you’re approaching it that way in your own head — and if you do, you’re setting yourself up for disappointment.
One example of the several barter arrangements I have in place: I make jewelry. My masseuse and I have an agreement. If she sees something she likes for herself or a present, we’ll trade retail for retail. If she “buys” something that costs $40, my next massage will be $40 off her retail price. She could write me a check for $40, then I’ll just write it back to her the next week, but what’s the point? We both know the value is $40. We’re both “buying” something we would have bought anyway. Neither of us feels that we are getting something “free.” We use the retail value of what we’re exchanging to set the exchange.
That said, I turn most barter requests down. I generally don’t barter with people I don’t know already (in real life or via the Innertubes). I very rarely initiate a barter arrangement; usually it’s someone else asking me, and I don’t barter if I have to work at figuring out what thing of theirs I might want in exchange for what they’re asking for.
The key to successful barter is knowing and trusting your barter partner, both sides understanding the true value of what you’re bartering, and setting up the exchange in a way that is fair and respectful. You have to go into it happily and with a clear agreement. Barter is not for everyone. If you find yourself feeling angsty or unhappy about it, then you shouldn’t do it. But to label it as always unbalanced and as always giving your work away for free is unfair.
Hey Lori. Thanks so much for chiming in!
One thing I need to clarify: my “not 100% experienced” comment was purposefully vague, as I don’t want to get into the details. However, I want to clarify a bit by saying it’s not like I didn’t know what I was doing. It was more like a very accomplished landscape painter who needs to paint a building in her next landscape. She’s not done it much before, but her painting skills are such that she will be able to, albeit a little more slowly than she would if she were just doing a plain old landscape.
I, too have had a few barters that went well, and I’m glad to hear you haven’t had the trouble I (and many others have) had.
And I’m sticking to my guns on this one…
Only ‘cuz you seemed surprised no one had disagreed.
As I said, if it doesn’t work for you, don’t do it, but it does work — and work well — for a number of people. I think at the core we’re getting to the same thing, though: putting a definite and real-world value on your work, and not dealing with people who think they can get something for free.