When we were kids, trading baseball cards, dolls or CD’s (I could say vinyl albums, but then I would be dating myself) for merchandise of equal or more personally meaningful value was the most natural thing in the world. Barter was, after all, the original form of trade, pre-dating currency and serving as the building block for what evolved into today’s economic system.
   Why is it, then, that the word “barter” today still makes some brand marketers’ heads spin?
    For some people, corporate barter remains a bit mysterious. It need not be. The barter process is simpler than ever and has proven to be a valuable tool for corporations. In particular, trading merchandise for media is an important tool for many companies.
   The key questions are: How do you know if barter is right for your company? And, if so, what is the process?
   First, some quick background on the barter industry. It’s been around more than 50 years in various forms, and available industry evidence indicates that approximately 75 percent of Fortune 500 companies have used corporate trading at one time or another. 
   In total, the corporate trading industry generates more than $7.5 billion in sales annually, according to the International Reciprocal Trade Association. These same corporate trading companies are placing more than $1 billion in media time and space each year.
   Trading credits can be used in virtually all media segments. Media, in fact, is the most widely used form of credit redemption, and that’s what we will examine here because of its implications on marketing strategy.
   When is barter the right way to go? 
    There are several situations in which barter can be an ideal solution.

1. You have excess or slow-moving inventory from which you would like to derive some value.
2. You have out-dated inventory on which you will likely take a loss.
3. Your media budget is limited and you want to expand your advertising efforts but don’t necessarily have available cash to do so.
4. You have a building or other real estate that you would like to sell but that isn’t worth today what you paid for it originally.

Here’s how the barter process typically works:
 The trading company receives a media plan from the client or agency of record. The trading company’s inhouse media group then negotiates cash and trade with media vendors. The media company, in turn, has a broad menu of goods and services from which to fulfill its trade portion of the buy.
   The trading company submits the media buy and the cash/trade blend to the client or agency of record for approval. Once approved, the media buy is executed and the trading company provides industry standard post delivery.
   If barter appears to be a solution for your company, how do you select the right commercial trading company – the right partner – with which to work? 
   Like anything else, there is no substitute for due diligence. In this case, in particular, doing some basic homework is especially important since this is an area that is new to you.
    Here are some key questions to ask a trading company when you are seeking a partner:
    Speak to the company’s media buying staff and ask about their credentials. This is no different than hiring a media buying firm. You want to know that you will be dealing with media professionals who could easily be doing planning for a traditional ad agency, and not people who are simply trying to move the media they have regardless of your marketing goals.
   Ask for examples of the media available to you to ensure that high quality options are available for consideration.
   Ask for client references and case studies. You don’t want to be a guinea pig.
   How willing is the trading company to involve your agency in the process? The barter firm should be 100 percent willing to review media schedules with your agency (more on the barter company-agency dynamic in a moment).
   The company should be willing to guarantee the buy they will make for you and ultimately offer proof-of-performance verification.
   What happens after your goods are acquired by the trading company is also important. Find out where the company plans to sell your merchandise. 
   This is an often-overlooked element of the process, but a very important one because you do not want to denigrate your brand. All reputable trading companies will stipulate in writing that they will adhere to your guidelines concerning remarketing your goods.
   The barter company/ad agency dynamic alluded to above is one that sometimes throws a monkey wrench into the works. Many agencies initially will express a resistance to barter because they see it as a threat to commissions or as a loss of control. 
   You as the client must make sure that your agency supports your decision to use barter and is serious about working with your barter partner. Only then can the process achieve your goals. 
   Today, media services are contracted a la carte. You may chose agencies under different corporate umbrellas because you are confident that each will provide the best expertise. 
   The same is true when selecting a trading company. The trading company is not replacing the agency; it is simply bringing a different skill set to the table.
  As we intuitively knew when we were kids, barter is a logical and beneficial tool to get something that you can use in exchange for something you cannot.
   In the world of business, barter need not be much more complicated or mysterious than trading baseball cards-- if you know the right questions to ask.