Issue link: http://cp.revolio.com/i/142672
the business of barter Searching the "barter" section of www.craigslist.org, using the keyword massage, will yield many opportunities. Another option web surfers will find is the professional trade exchange group. Don Mardak, CEO of International Monetary Systems, Ltd. (IMS), began his company almost 40 years ago and espouses the benefits of barter for all industries, including massage. With an office in every major city, IMS connects people all over the world with services (dentists, attorneys, electricians, plumbers) and products (retail merchants, hotel and restaurant owners, major league sports events). He asserts that massage therapists can utilize barter as a new vehicle for marketing their businesses, creating a wider customer base, and positively impacting their revenue stream. The IMS membership cost, along with a fee on every transaction, might seem a bit daunting to a massage therapist on a limited budget. However, Mardak says, "If you spend money for business expenses, it can be deducted." He promotes barter as "real commerce outside of the mainstream economy" and says "barter can be a panacea for weak economic times. If the economy tanks, in our system [members] can still use our secondary currency. They can fulfill their needs." Tom McDowell, executive director of the National Association of Trade Exchanges (NATE), agrees that membership in a barter organization could mean a bigger customer base with less effort. "A group already has a network of businesses that use barter. We provide each other with new customers," he says. For instance, if a massage therapist needs a brochure or newsletter printed, she has to expend time and energy finding the resources. "NATE sends people to the massage therapist," McDowell says. "The work is done and paid in trade. It takes away the aggravation and hard part of barter." The Right Fit McDowell reports that most barter exchange groups work on an individual basis and will match industries with the dollar amount appropriate for them. He notes that if you can add $5,000 in new business to your current income, he recommends joining a barter organization. While membership brings many perks, there could be one drawback. McDowell points out that members are obligated to do business with other companies/individuals in the barter group, so massage therapists might have to change current vendors and suppliers. However, McDowell reports that membership numbers bear out the appeal of organized groups to the massage industry. "Around the country there are approximately 2,000 massage therapists and spas that participate on an organized basis," he says, pointing out that members can tap into hundreds of businesses and a network of thousands of potential prospects for new business. Some formal barter groups operate on a national or international scale, but McDowell notes that many exchanges have local chapters. To make membership in a group worthwhile, the individual has to consider "dollars and distance," he adds. Before joining a group, McDowell suggests potential members practice due diligence. "Meet the people, the administrators, and talk to others in the group. Get a list of the members. If there is anyone you know on the list, contact them," he says. Additionally, he offers questions that will help determine if a formal group is right for you. "Consider what you are looking for. Does it have customers you'll do business with? Are there things that you as a massage therapist spend money on and would rather trade for?" These organized groups also handle tax reporting, relieving members of the hassle of complying with federal regulations. In 1982, Congress passed the Tax Equity and Fiscal Responsibility Act, which classifies trade exchange organizations as third-party record keepers and obligates them to issue 1099s to members for all transactions. However, not all massage therapists look favorably on this option. Hollingsworth briefly considered a barter group in 1994 when she practiced in Monmouth, New Jersey. "But it didn't strike me as appropriate. For example, there was gardening and other services I couldn't use," she says. "Also it