Let’s face it! In a bad economy, many of the popular income generating approaches has just fizzled. If you own a business or professional practice —unless you’ve lucked out and offer a product or service that is benefited by the recession —your revenue, sales…and personal income are all suffering now. But as promised, I will share weekly an idea to move us beyond despair.
Cash-flow is the key element everyone now needs to focus upon. But how do you increase, multiply and expand your own personal or business cash-flow —
when the economy, consumer sentiment and market place are ALL going against you?
You use barter —Yes , barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.
Carnival Cruise Lines, a Florida-based cruise line which is now the largest cruise line in the world, started with one ship and insufficient operating capital. The line traded empty cabins for radio, television and newspaper advertising in 100 cities over a ten-year period. The cost of an empty cabin once the ship sails is minimal. Plus the passengers may spend considerable cash in the bar, casino, gift shop and shore excursions; thus the net cost to the cruise line to fill an empty cabin was literally less than zero.
Stated differently, they made a massive profit off the bartered cabin being occupied instead of going out empty. Here’s the payoff to the cruise line. They used this technique to become the largest cruise line in the world and continuously advertised in 100 cities for more than ten years without spending a penny of hard cash. A conservative estimate of the amount of sales generated was $100,000,000. The owner of the cruise line is now a billionaire and in the top ten on the Forbes richest list. And it all started with one 30-year-old ship and heavy barter advertising.
There is tax implication when you enter a bartering transaction. Do your homework and see how you can benefit.
Brainstorm potential bartering partners in your network of business.
Seek a competent broker that can make the deal happen.
Post a response or for the post-challenged, send an email to [email protected] with your thoughts.
“The pessimist complains about the wind;
the optimist expects it to change;
the realist adjusts the sails.”
by William Ward