Frequently Asked Questions What is barter?
Barter is a way of transacting business without the use of cash. You can buy what you need and pay for it with what you have.
What are the advantages of barter?
There are several, with the foremost being NEW BUSINESS. Barter provides you with new clients and allows you to expand your market beyond your cash paying accounts. Barter also help in conserving cash. Instead of spending cash on the purchase goods and services you need, you can barter your own goods and services. Therefore, the more cash that stays within your business, the larger increase of cash flow. Plus, barter puts idle resources to work, so excess time, inventory and capacity are converted into profits.
I already direct trade on my own. Why join Genesis Trade Exchange?
The problem with one-on-one trading that you are accustomed to, is that each business owner must need exactly what the other has to offer. In the Genesis barter network, everyone trades with anyone, even if they do not want what the other person has to offer. Trade dollars are credited to a trade account with Genesis, which you can then spend on any item or service you need or want from within the network.
How does barter work within Genesis Trade Exchange?
Clients of Genesis use trade dollars, instead of cash to handle their transactions. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in trade dollars in their Genesis account which can be used to purchase anything from the other trading clients with the Genesis network. Genesis is considered a third party record keeper, providing monthly statements to all clients which reflects all purchases, sales, fees and current trade dollar balance.
What major companies are involved in barter?
Nationally over 400,000 businesses are involved in barter. Major corporations include General Electric, Canon, Ricoh, Xerox, Wilson Sporting Goods, Mattel, IBM, Chrysler, Radisson Hotels, Ritz Carlton Hotels, Howard Johnson Hotels, Doubletree Hotels, Goodyear Tire and countless others. It is estimated that over 65% of the Fortune 500 companies engage in barter to one degree or another. A complete Genesis Directory and Addendum is maintained for all Genesis participants.
What does it cost to get started in Genesis Trade Exchange?
There is a one time membership investment and a modest monthly accounting fee which substantiates the monthly statement administration, newsletters, faxes, directories, mailings and other promotional efforts.
How does Genesis make money?
There is 7 1/2% transaction fee on sales and purchases. This represents a fee for generating NEW BUSINESS for clients of our exchange network. Trade business provided is NEW BUSINESS from clients over and above your standard cash clients. Most new businesses are content to pay a small percentage to acquire new business. This fee is Genesis’s main cash producing vehicle, necessary to keep the exchange operating on a financially responsible basis.
What if I call for something that is not available through Genesis?
When Genesis does not have a source for some thing a client requests, we get right to work to target vendors who can supply that product or service. As new businesses are solicited to join Genesis, only those who can fill the needs of our current clients are approached. To get the most from their Genesis investment, we ask that each client fill out an Expenditure Analysis, listing as many current and future needs as possible. Trading can never fill every need, but an in depth analysis certainly assist us in your barter endeavors.
What if I don’t get any business through Genesis?
This problem should only be temporary, providing your product or service is marketable and not desirable to only a limited group. The amount of business you receive, however will depend upon your type of business, along with the network’s supply and demand factors. If you are not getting as much business as you want, talk with a Genesis Broker for ideas on how to generate more sales.
Do you have special tips on how to trade more profitably?
Complete a Genesis Expenditure Analysis, think of everything you spend your cash on. Don’t limit yourself to worrying about one or two large one-time purchases. Look at you business checkbook for the last 12 months as a memory aid. Think too, of your personal needs. If you regularly take cash out of your company for living expenses like travel, home improvements, etc.—why not take out barter income instead and save your cash for products and services that the Genesis network barter network may not be able to supply.
I am looking for a specific computer. If I save my trade dollars, can I get it through Genesis?
Saving trade dollars in order to purchase a very specific high demand item can only frustrate and discourage a client. Again, to get the most benefit from Genesis, you first need to complete an Expenditure Analysis. You should spend your trade dollars on ongoing everyday expenses, saving the cash you would normally have spent and not try to continually save for one specific item. Rather, put aside the cash you save everyday and buy the specific large item and purchase exactly what you want.
Are there any unusual uses for barter?
Yes. Barter provides limitless opportunities. Here are just a few creative ones:
Pay Employees - Use trade dollars to pay employee benefits, bonuses and perks. Even pay a portion of their regular salaries in trade. For a nominal fee, we will set up employee sub-accounts and will assist your employees in spending their trade dollars.
Pay Bills - Use trade dollars to pay some of your outstanding cash bills. If you owe a vendor money for a product or service that you just don’t have the cash to pay-talk to them about barter with Genesis. If they become a part of our network and you have a trade balance to cover the amount owed them-then you can immediately pay them.
Collect Past Due Receivables - Businesses that are unable to pay money they owe you will probably be very willing to pay you with their product or service. You may not need these offerings directly, but Genesis may have a market for their products. So call Genesis with the specifics and we may be able to move their products, either by them becoming a part of the exchange network and working with their own account, or we can process the transaction through your Genesis account, and credit your account when the products or services have been sold.
Suppose I want to make a trade purchase and I don’t have enough credit to purchase it.
The standard policy is that you must have the trade dollars to cover all purchases. If and when credit is requested, it is handled on an individual transaction basis. It is processed for qualified businesses, who have an established history with Genesis. All loans are subject to a 1 1/2% per month compounded interest charge on the unpaid balance and subject to the provisions in The Rules and Regulations of the Genesis Contract Agreement and General Trading Policies and Procedures.
What if I terminated my membership with Genesis? What happens to my trade balance?
If you wish to terminate your relationship with Genesis, a 30 day written notice is required. Your transaction fees would need to be paid in advance. You then have 90 days to spend out your balance.
Are there any tax advantages to barter?
There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes. Trading should be considered a marketing too, not a tax tool. As with cash income, however, trade purchases that are business related are also tax deductible.
How do I know how much barter income to include on my tax return?
At the end of the year, Genesis totals your barter sales and submits this information to the IRS on the 1099B. You are also mailed a copy of this form for your records. On your taxes you will find a line for bartered income, this is treated exactly the same as cash.
Who decides what price the seller will charge on barter?
Essentially, the market determines pricing just as it would for cash. The seller is expected to trade their goods and services at their prevailing prices. By accepting or rejecting prices, Genesis members are ultimately determining authority in the pricing integrity. Genesis Broker keep in constant contact with Members to monitor fair pricing policies.
Can I charge part cash and part trade?
Genesis transactions are 100% trade on the first $5,000 of each transaction. If you encounter vendors requesting cash on transactions under $5000, notify Genesis immediately.
How do I get started in Genesis?
A member of our staff will meet with you to sign a Genesis contract, pick up your initial investment check (or credit card payment) and discuss your products and services availabilities, as well as full details on our program. Our client Services Team then assists you in getting the most from your barter investment. | 