What Do Brokers in an Exchange Do?
Probably the most important day—to–day activity that takes place in a commercial trade exchange is brokering the goods and services in the exchange. In other words, finding what clients need or want with businesses that can supply it on trade. Most exchanges employ individuals whose primary purpose is to do just that. They are referred to as brokers.
During the course of bringing businesses together to create trades, brokers also act as a resource and guide to their member – informing them on how to best utilize their trade credit and how to generate trade from new customers. Specialized knowledge of trade economics and ethics is a plus and can be obtained by studying and passing the Certified Trade Broker exam offered by the IRTA.
Things to ask your Trade Broker about:
Basic barter economics and member conduct
How to access the exchange’s Member Directory
On–line Services
Flyers to be included in the exchange’s regular mailings or e-mail communications
Networking events put on by the exchange to meet fellow members
Credit extension policies and procedures
Joining An Exchange
If you have determined that commercial barter is for you, then you should take the following steps:
First things first, make sure that your business is stable with cash flow. If your business is already experiencing cash flow problems, don’t assume that barter is going to solve them.
Locate an exchange nearest you. The IRTA Member Directory will enable you to search for IRTA member exchanges. Make sure you know why it is important for an exchange to be an IRTA Member Exchange or an IRTA Certified Exchange.
Develop a List of Wanted Goods or Services. Identify 10–12 items or services that you typically, and perhaps regularly, spend cash on. Show this list to the exchange you are considering and have them provide information on their availability.
Determine if you will be assigned a Trade Broker within the exchange.
Understand the fee structure of the exchange. Ask the exchange to go over any costs associated with becoming a member, maintaining membership annually, as well as the cost of trading within the exchange (transaction fees). Not all exchanges charge the same.
Determine with the exchange the anticipated demand for your product or service within the exchange membership. You want to know if you should be prepared for either a lot of requests from exchange members or infrequent requests. If the exchange does not believe that there will be reasonable demand for your product or service, you should think twice about joining.
Ask the exchange about their code of conduct and affiliations with organizations like the IRTA. Exchanges who participate in such organizations typically have a higher standard and work hard to protect their reputation within the industry. See “Why Join IRTA”.
If you have a product or service that can be sold to a global marketplace, ask the exchange what resources and affiliations they have to sell your goods in this way. For example, Universal Currency allows exchanges to access a worldwide barter marketplace.
Probably the most important day—to–day activity that takes place in a commercial trade exchange is brokering the goods and services in the exchange. In other words, finding what clients need or want with businesses that can supply it on trade. Most exchanges employ individuals whose primary purpose is to do just that. They are referred to as brokers.
During the course of bringing businesses together to create trades, brokers also act as a resource and guide to their member – informing them on how to best utilize their trade credit and how to generate trade from new customers. Specialized knowledge of trade economics and ethics is a plus and can be obtained by studying and passing the Certified Trade Broker exam offered by the IRTA.
Things to ask your Trade Broker about:
Basic barter economics and member conduct
How to access the exchange’s Member Directory
On–line Services
Flyers to be included in the exchange’s regular mailings or e-mail communications
Networking events put on by the exchange to meet fellow members
Credit extension policies and procedures
Joining An Exchange
If you have determined that commercial barter is for you, then you should take the following steps:
First things first, make sure that your business is stable with cash flow. If your business is already experiencing cash flow problems, don’t assume that barter is going to solve them.
Locate an exchange nearest you. The IRTA Member Directory will enable you to search for IRTA member exchanges. Make sure you know why it is important for an exchange to be an IRTA Member Exchange or an IRTA Certified Exchange.
Develop a List of Wanted Goods or Services. Identify 10–12 items or services that you typically, and perhaps regularly, spend cash on. Show this list to the exchange you are considering and have them provide information on their availability.
Determine if you will be assigned a Trade Broker within the exchange.
Understand the fee structure of the exchange. Ask the exchange to go over any costs associated with becoming a member, maintaining membership annually, as well as the cost of trading within the exchange (transaction fees). Not all exchanges charge the same.
Determine with the exchange the anticipated demand for your product or service within the exchange membership. You want to know if you should be prepared for either a lot of requests from exchange members or infrequent requests. If the exchange does not believe that there will be reasonable demand for your product or service, you should think twice about joining.
Ask the exchange about their code of conduct and affiliations with organizations like the IRTA. Exchanges who participate in such organizations typically have a higher standard and work hard to protect their reputation within the industry. See “Why Join IRTA”.
If you have a product or service that can be sold to a global marketplace, ask the exchange what resources and affiliations they have to sell your goods in this way. For example, Universal Currency allows exchanges to access a worldwide barter marketplace.
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