Swapsies! How to make bartering work for you

It sounds like a great idea. Your friend will do you a logo in exchange for you re-writing her website. Or maybe you make the celebration cake for your friend’s sister’s birthday and she does your PR for a couple of months. Or how about you de-clutter her kitchen and she does the legals for your contracts?

Whatever you exchange, bartering feels like something for nothing and it sounds great. Until, that is, it goes wrong. Then, heaven help us, bartering often ends in tears.

So how can we make bartering work better in our businesses? Here are nine tips:

1. Before you get any further down the path, ask yourself “Do I really want the ‘exchange’ work?’ You wouldn’t be the first person to find yourself doing great work for someone else in exchange for something you didn’t really want!

 

2. Be very clear about what you are exchanging. We can be terribly vague with friends. You might say “I’ll make the cake” but that could mean anything from a quick Victoria Sponge to er, this. So define exactly what you intend to give.

 

3. Put a value on the work you are giving – what price would you normally sell this work for? If it’s something that you don’t normally sell, do some research to see what other people charge.

 

4. Ask your friend to be clear what she is giving you in exchange. If she’s a bit waffly then try defining it for her. You can do this by asking lots of questions “Will you do ….?”, “What will it look like when it’s finished…?”

 

5. If you’re struggling for questions then try asking yourself “How will I know that she’s done a good job?” This is a great tip for focusing the mind!

 

6. When you know exactly what your friend will be exchanging ask yourself “Is this good value for what I’m giving?” In other words compare the work you are getting to the price you are giving (from point 3).

 

7. You can do a bit of research to see how much the work you’re getting would cost if you bought it in a formal way. But this is not essential. If you’re happy with the value of the swap, and you like the thought of working with your friend, then what’s not to like about the arrangement?

 

8. Write down what you agree to. I know this sounds a bit weird for friends but it will help clear up any misunderstandings. You don’t have to do this in a very formal way, just an email with a few dot points will do.

 

9. Make sure you put a deadline or time frame on the agreement in (8) above. Lots of friends fall out when bartering because one does her work promptly while the other, cough, doesn’t!

Good business bartering isn’t easy. In theory you and your friend are no worse off (probably even better off even) just doing what you would normally do – finding the right supplier and paying them in the usual manner.

But sometimes when we’re short of cash or customers it makes sense to barter with a friend. And anyway, if we set it up right, it’s way more fun!

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