Do You Barter?
September 16, 2009 by Deb
Filed under Freelance Writing Business
Over the summer I wrote some copy for a friend. In return, he made a giant clone trooper pinata for my son’s birthday party. It was an even trade and I didn’t think twice about swapping services this way. I don’t use the barter system often because I need money more than I need things, but I consider it on occasion.
I remember there was a content company called “How to Do Things.” Instead of paying cash, they paid with gift cards. I’m not sure if they still do this, but at the time I knew a lot of writers who signed up. I only did it a few times though. Gift cards are fine and dandy, but they’re not cash.
Something some freelance writers may not consider is that bartered goods are still considered income. So if you write in exchange for a big screen TV, you have to report that television as income. In fact, if you review many big (and even small ticket) items, these might be considered income as well. The company that it sending you products are bartering for your services. They’re paying you products in exchange for your review, even if it’s less than favorable.
I’ve bartered for the following:
- Ad trades – I trade ads with other freelance writing blogs.
- Guest blog posts - We pay our guest bloggers at FWJ, but I will also trade posts with other bloggers.
- Web design or technical skills – I’ve traded writing for help with the technical end of FWJ
- Products and services – See Clone Trooper anecdote above.
Some things to consider when bartering:
- An equal exchange - If you’re trading your writing for a product or service, make sure you’re receiving an equal exchange. If you’re writing for hours for a $10 Starbucks card, you’re getting the wrong end of the stick.
- Taxes and accounting - Always report bartered items as income when doing your taxes.
- Products and services aren’t cash - Even though you’re receiving products or services rather than buying them, you’re taking time away from projects paying cash. If cash flow is important, you won’t want to do the barter thing so often it takes away from the cash needed to pay bills.
Do you barter? Share your stories below.
I have bartered quite a bit this summer. Once, for a half share of a CSA – in other words, for a box of fresh, organic produce every week of the season. I exchanged a monthly email newsletter to the other members of the CSA. More recently I bartered another monthly email newsletter for a gym membership. So far, so good in both cases. It’s helping me build a solid portfolio and getting me things I would definitely pay money for….
I’d definitely barter for fresh veggies. Good deal!
Hi Deb,
I write for a gaming site called HookedGamers.com. It’s volunteer, no payment involved, but each month the site gives away two free video games to the writers who have the highest rated articles/blog posts. Is this considered a barter, and something I should be claiming as income, or since it’s a giveaway is it considered a gift or contest prize? Would either of those need to be claimed?
That’s more of a contest than a barter, I think. Even so, you’re supposed to report prizes and winnings too.
I’m not saying every writer does, just that it’s what you’re supposed to do.
I have an online magazine that I routinely write for that only pays in barter: CD’s. It’s nowhere NEAR what I’d be making if I were charging by the project or the hour. But they gave me my first published piece back when it was a print magazine. And it’s in my niche and keeps my name out in front of people who might hire me. Occasionally I get a little irritated that I spend so much time writing for things that don’t pay nearly enough when I need to be finding more paid gigs. But I have cut WAY back on my writing for them (every other month). So it’s sort of a tradeoff. I do it because the subject is a passion of mine and it’s good exposure. I’m sure there will be a time, maybe even within the next year, that I stop writing for them so I can focus on other things. We’ll see.
@Dava That sounds great! I’d love to be able to write and get a box of fresh veggies every week. Think of how much money you save on grocery bills!
honestly, Deb, do you really and truly value and report every barter deal? IMHO, the great up side to barter is the fact that if nothing is said, nothing is said.
@Lisa, no comment….
I bartered a lot when I had my design studio – I would barter domain name registrations, site design, hosting – everything in exhange for eating out, hotels when we traveled, interesting things on the marketplace. It was all through a barter company that I still barter through today.
Personally I don’t see how direct barter ever works more than once or twice because I never wanted what they had, it is through TransMedia that I earned barter dollars that I could spend anywhere.
There are a lot of barter companies out there, but most charge a crazy fee to ‘join their club’ – it’s not that way with TransMedia and the work with small guys like me all the way to airlines and major hotels. Hey, maid service and massages even.
Barter can be good, I like it personally.
our barter’s closer to what Deb describes: plumbing for press releases, babysitting for web copy, that kind of thing. person to person, not “official.” works very well for us.
I must confess there has been the occasional proofreading-for-footrubs barter in my household…
I worked for one site that said straight out it couldn’t pay, but sent lots of products from PR companies. I got a pretty nice chair and portable hammock out of the deal. Overall, bartering is tough, especially for an extended time period. I find it difficult to get motivated to write when I’m essentially working for free junk. I think the best way to make it work is to barter for something that you actually need, not just want–this way it’s saving you money, which is as good as pay.
I agree with Chris. Barter can be worthwhile if you’re bartering for something you need anyway. I’ve bartered for PR and other marketing help, and I’ve bartered articles for advertising. I also have a deal with my regular tech support clients: I charge for less time if I can bring my kids, which works well for those clients who also have kids.
But in general I don’t barter unless it’s something of real value to me.