The more a corporate-barter firm is focused on barter, the more options it can provide.
Make sure you are comfortable with the company you keep; you'll be together for a long time. To help, take the time to partner with one that:
- Reinvests profits in the ﬁrm, enhancing its ﬁnancial strength and spurring new products (vs. distributing all the money to its owners).
- Concentrates on product development, employing creative resources to anticipate and develop what its clients will need in the future.
- Is an industry thought leader. Is it a ﬁrm that companies turn to when they have to solve a knotty problem or just a routine player?
- Has senior executives who are hands-on dealmakers. A corporate-barter transaction requires major commitments on both sides. Get the firm's commitments from the top.
- Does business in the United States. The U.S. is home to the world's largest and most diverse marketplaces of perishable commodities. Firms that try to offer American-style corporate barterThe creation of value by exchanging a client's unwanted or undervalued asset for the promise to purchase over a period of time from the corporate-barter company a defined set of goods and/or services, called fulfillment. (Sometimes mistakenly referred to as Corporate Trade.) based in Europe, South America or Asia are likely to have trouble amassing enough inventoryWhile this can refer to a client's physical inventory of merchandise (which, if it represents an undervalued asset, could form the basis of a corporate barter transaction), in the corporate barter world, inventory more commonly refers to a supply of advertising time/space purchased in advance by the barter company, which client companies use as fulfillment to complete their side of a corporate barter agreement. to fund transactions of any significant scale.
- Is operationally independent from its owner. If the barter ﬁrm has to rely on another division within its family of companies for cashU.S. federal banknotes; one of ICON's financial options., media planning, buying or other key functions, that division is understandably likely to put its clients and loyalties ﬁrst.
Choosing the right corporate-barter firm is an important long-term commitment.
Want to know more?
We wrote the book on corporate barter, literally. The passages in this section of the site have been excerpted from Unlock Financial Value with Corporate Barter by ICON founders John Kramer and Clarence Lee. To receive a complimentary copy (e-book or hard cover) and jump-start your understanding of how corporate barter creates value, click here now or call 203.328.2300