Another great way to turn barter into cash is to buy products or services on barter that you can then sell to your regular clients for cash. You’ve probably always been told that your easiest sale is to your existing clients and that is true for cash conversion as well.
One way that I do this in my web development business is to hire top notch professional graphic designers on trade on projects where I can bill clients cash for that work. Everybody wins. The barter designer gets work he/she would not have gotten. I get to convert barter to cash. The client gets great design work and because I did it on barter I usually can give the client a few more options/revisions than I would have been able to if I was paying cash.
This technique can also ne used with hard goods. If you run a retail shop you can supliment your inventory with items purchased on barter that you then sell for cash.
A couple things to watch out for with this technique:
- Of course watch out for price gauging. If you can’t purchase something at a price that leaves you with the margin you need, forget that item and look for something else.
- Stay in your area of expertise. It may be tempting to buy something on barter that you think you can sell for cash that is outside of your regular business practice. Keep in mind that the intent is to sell to your regular cash clients. The last thing you want to do is mess up that relationship with some product/service that you are not familiar with.