Frequently Asked Questions
What is Barter?
Barter is a way of transacting business without the use of cash. You can buy what you need and pay for it with what you have (be it a good or service). Barter is build to bring you a sale that you would not have had if cash were required. This allows for an immediate increase in cash flow for items and services that require cash.
What are the Advantages of Trading?
There are several advantages of trading:
1. Trade allows you to expand your market beyond your cash paying customers.
2. Trade conserves cash by allowing you to purchase products and services immediately... allowing you to save the money your bank account.
3. Trade puts idle services to work for your small business.
4. The More You Trade... The More You Save!
How Does Trading with Top Trading Partners Work?
Please review the "How Does It Work?" Section of this website.
Why Top Trading Partners?
Top Trading Partners is committed to You and Your Business. We will help you build your business, one barter at time.
This means our brokers are committed to seeking high quality members and highly sought trade partners to help grow your business. We are your marketing assistant, promoter, networker, and top fan all rolled into one. We are committed to helping you succeed in whichever way works for you. We offer more ways for you to connect with other Top Trading Partners and help you find just who and what you want and need.
Why are there Membership and Transaction Fees?
This is how we pay our Brokers to work for you. Your broker only gets paid if they are helping you grow your business either with connecting you with the clients you need or with the products and services you desire.
Think of it as advertisement for your business... you would pay for someone to market and promote your business, especially if they were bringing business directly to you, right? That is what the member and transaction fees are for... to promote your business to other members.
It is also used to keep track of your transactions giving you the freedom to focus on growing your business.
Why use a Barter Exchange vs. Doing a Direct Trade?
With a direct trade, you have to trade with someone who needs your services and you need theirs. This doesn't always work in the real world. As one of our elite Top Trading Partners, you have the freedom to obtain high quality products and services that you want and need, as well as provide services for clients who value your business.
Will I Ever Pay Another Member in Cash and Trade Dollars?
Occasionally, when a third party is involved with the trade in which the member has no control over cost, there may be a need for a cash/trade blend.
Example: If you have a trade agreement with an attorney for his/her services, you may have to pay court fees in cash to the court (third party-with no control), in addition to the trade dollar. Please contact your broker for any additional information regarding cash/ trade blends.
Is This Legal?
Yes. Modern barter exchanges are regulated by the IRS and are recognized as a viable form of commerce under the TEFRA (Tax Equity and Fiscal Responsibility ACT). Top Trading Partners is a third-party record keeper for our members. We ensure that every transaction completed through our exchange is accounted for and recorded. Every member is required to complete a W-9. At the end of each year, we send 1099-B forms to each member to file with their yearly taxes. We report all transactions to the IRS which means taxes will be owed on all sales, just as if they were cash transactions. This ensures that all members comply with the IRS and there is no risk of penalty.
Are There Any Tax Advantages to Bartering?
There are neither advantages or disadvantages to bartering. As mentioned above, you will pay the same amount in income tax for trade dollars as you would for cash. Please consult your tax advisor for further information.
Do Trade Dollars have a Value Outside of the Network?
No. Trade dollars do not hold a monetary value outside of the network. They are simply a way to place a value on the products and services being exchanged between members.
Can I Use My Trade Dollars for Personal Expenses?
Most certainly! You are the owner and in full control of your Trade Dollars. Feel free to use it on vacations, dining out, entertainment, spa treatments and more!!!