The Flip-side of Bartering

Written by  on January 24, 2012
trade

About April of 2011, I was putting together my first TEDx conference.

Organizing your first TEDx conference is one of the most stressful (and rewarding) things a human being can do, I suspect. Because it was the first one in our area (Northern Colorado), we didn’t have a lot of clout. Or a lot of guaranteed funding, either.

So I had to ask for favors.

If you know me, you know how much I hate asking for favors. I think if you’re doing work, you should get paid that work’s worth and not a cent less.

That being said, barter can be a good idea when you know you need help and you won’t waste the other person’s time. Or when you can offer a trade equal to or greater than the favor. When you’re asking for a favor, understand exactly the value that the other person is being asked to provide – and respect that. You might not agree with their value, but if this person is willing to help you – don’t argue.

Back to TEDxFoCo, I asked two videographers for their help. The first one turned us down outright. The second one… didn’t. In fact, they filmed the event, produced it, and delivered videos in the right format.

Videographer #2 was pure awesome. And now that I’m planning the next TEDxFoCo, I’m keeping them in mind for paid work. With a decent budget, I can pay them what they’re worth. This videographer also gets mentioned every time one of my clients needs video work.

The other videographer? I don’t actively campaign against ‘em – because I get it. The drive against doing free work for any reason is huge. Maybe it wasn’t a good time to ask. Still, this person is not my first choice for paid videowork. I can’t promote them to friends, clients, whatever – because I couldn’t count on ‘em when the cards were down.

When you’re being asked to barter, do work pro-bono, or donate time of any kind – always temper that instinct to say no against who’s asking you and what the opportunity is. Unless they’re a complete slouch or dirtbag, if someone’s asking you a favor – their butt is probably on the line.

Just don’t get overbooked.

(Header photo: Trading by Eddy Van 3000)

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This post is part of the January Word Carnival — a monthly group blogging event specifically for small business owners. (It’s the most fun you’ll have all month!) Check out the rest of the fabulous carney work here. And don’t forget to join us for our Twitter Chat on Thursday (Jan 26) at noon (Pacific). We’ll be tweeting up a storm under the #WordCarnival hashtag.

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  • http://virtuallydistinguished.com Michelle Church

    A true bartering advantage story that is the reason to even consider it.  I did not do a great job on my first barter agreement but I learned from it.  I love this story…I just received a request to help someone and I am going to figure a way to fit it in!

  • http://www.IAmNickArmstrong.com Nick Armstrong

    Thanks Michelle — I appreciate it.

    I think with everything, the trick is moderation and knowing when to say yes as opposed to saying No.

    It’s OK to go to In ‘n’ Out, if you’re going back to a state where they don’t exist…

  • http://twitter.com/SHurleyHall Sharon Hurley Hall

    That’s a good point, Nick – people ask for barter when they don’t have cash, but if you’re getting something of value too, then it can be worthwhile.

  • http://pajamaproductivity.com Annie Sisk

    Straight up awesome, Nick. I love the case studies and personal stories I’m seeing in this Carnival roundup, ’cause I learn more about doing anything that way (I think we all do). And I’m happy to see a voice of caution here, too. Bartering does have an inherent danger if we underprice (or overvalue) our own goods/services, for sure. 

  • http://www.thewordchef.com Tea Silvestre

    Yes! Know your boundaries! I always set aside a certain percentage of my billable hours every year for non-cash clients. Most of the time, these end up being in-kind sponsorships (similar to the arrangement you made with your videographer). Everyone needs to spend time marketing, and providing an in-kind service is doing just that — so work your tail off and impress the heck out of ‘em!

  • http://www.thenumberswhisperer.com Nicole Fende

    Nick I love the real life story.  Its a great example of how you can grow longer term relationships in business.  That said I have to disagree strongly with you lumping barter together with pro-bono work and donating time.  Bartering is the exchange of goods or services with equal value.  If someone pays you cash of $100 or if someone provides a service to you with a market value of $100 you ARE getting the same benefit.  Barter simply cuts out the middle man.  

    I’m not against donating time or doing pro-bono work.  And you highlight a great reason why donating time now may buy you a long term customer.  I view that as a marketing investment.

  • Anonymous

    This is what we need Nick.  Real life stories to work out how this all works.  Seems to me that Videographer No 2 partnered with you in this venture.   Presumably no one was being paid squillions to organise this event?   So the outcome for this unpaid work was the benefit of being involved in the event, the reciprocal nature of the promotion you have done for him subsequently and that he might likely return the favour.  Plus there is a relationship in this and the extended networks of your two businesses.  

    I have a question Nicole.  How many businesses offer their time pro bono without believing that down the track their will be some form of reciprocity?  Whether it’s in greater exposure, promotion as a sponsor or just being seen as a jolly good citizen which benefits one’s reputation.  

    It’s true you take a punt that the value of your work will result at some point in a similar return. Some of these things are difficult to measure, like reputation.   It might not be barter in it’s truest sense, but I hazzard a guess that most people doing pro bono work advertise that they do it, agree to having their logo’s used as sponsors etc.   Isn’t that a form of barter?  It’s definitely marketing investment.  So then perhaps it’s free marketing for my free work?

  • http://www.contentstrategyhub.com Eugene Farber

    I have to agree with Nicole here. Although the long term benefit of doing pro-bono work can be just as great as a barter exchange.

  • http://www.contentstrategyhub.com Eugene Farber

    I have to agree with Nicole here. Although the long term benefit of doing pro-bono work can be just as great as a barter exchange.

  • http://eadesign.me/ evan austin

    Love it, Nick…last paragraph sums it up really nicely. i get asked to do cheap/free work all the time – and sometimes i do, when the stars align as you’ve described – AND i’m terrible at saying “No”. This makes for a dangerous situation, but fortunately i have kids i can fall back on if i can’t muster the courage for a good old fashioned “now’s not a good time”.

  • http://eadesign.me/ evan austin

    Love it, Nick…last paragraph sums it up really nicely. i get asked to do cheap/free work all the time – and sometimes i do, when the stars align as you’ve described – AND i’m terrible at saying “No”. This makes for a dangerous situation, but fortunately i have kids i can fall back on if i can’t muster the courage for a good old fashioned “now’s not a good time”.

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    Nicole — in my mind, and this may be one of those “limiting” beliefs, but - 

    You absolutely lump together people who aren’t giving you cash and those who are. If I need to eat, I work harder toward the cash clientele than I do the non-cash clientele, because I know where my money comes from.

    Part of that is also a bit of self-knowledge, knowing when you can take something on and when you can’t – and like my last line said – don’t get overbooked.

    Pro-Bono and Barter are the exact same thing to me – they don’t directly add to my bottom line, and so the perceived value is different. Not less or more, but different. :-)

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    Sharon – absolutely. I think the value can often be hidden unless you’re really good at recognizing it.

    In this case, TEDx is a pretty big brand to get behind and knowing that there were going to be more of them… well, it’s not always easy to look past the lack of money part.

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    It’s the cardinal sin of running your own business. It’s actually a form of cognitive bias; you believe that everybody can do what you do, so you don’t value it because you don’t attribute all the hard work it took to get there to the whole picture.

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    Absolutely. In-kind services can be crazy difficult to have any follow-through on, though, when you’re eating ramen. ;-)

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    Sandy – a lot of what I do is reputation-based barter, under those terms.

    I don’t do it with reputation in mind, but I do enjoy teaching, leading courses, offering assistance whenever possible, often without the chance of getting paid for it.

    I have an entire group organized around education in social media for $1 (which goes to charity).

    Over time, you gain a reputation for being very, very valuable to the community as well as very generous. But reputation doesn’t always pay the bills ;-)

  • http://www.IAmNickArmstrong.com/ Nick Armstrong

    Evan, you’re not alone.

    I am about the worst person I know at saying “No”. It sinks me at least once a year… and even more in years past.

  • http://www.thenumberswhisperer.com Nicole Fende

    Nick I think it is one of those limiting beliefs.  Here’s an example that comes to mind.

    Your car breaks down.  You need the car to live your life, run your biz etc.  But you have no cash.  Your mechanic really needs your services and is absolutely open to barter.  You both are getting something you need, something of value.

    To me having a running car is right up there with eating.  Which I may point out a local farmer or farmers market may be open to a barter arrangement which would literally put food on your table.

    The only limits are the ones you set for yourself. 

    I really appreciate the great conversation this round of carnival posts has started and all the open dialogue.  Thanks for sharing your thoughts Nick.

  • http://www.thenumberswhisperer.com Nicole Fende

    Great questions Sandy, and from a very Machavelian point of view – everything everyone does is for personal gain.  Even as you mention helping other, the personal gain may be to just feel good about yourself.  If it made you feel crappy it’s unlikely you would keep doing it.

    I don’t disagree with what you are saying re pro-bono, however in the context of a cash / value discussion I put them in a very different category than barter.  Perhaps using financial terms I would say barter and cash produce an immediate liquid asset.  Pro-bono etc are long term investments with uncertain outcomes.