1. How does Trade work?
Trade Members earn Trade Dollars by selling products and services, for trade to another member.
The Seller can then purchase a variety of products and services using the Trade Dollars they have earned from sales that were deposited into their Trade account.
HERE’S HOW IT WORKS: A Computer Store Owner who is an XTrade Member Sells a Computer to another XTrade Member for $1,000 Trade. The Computer Store Owner now has $1,000 in his XTrade Account which he can Spend with any other XTrade Member. He can use part of it for Marketing; pay a CPA for Accounting & Tax Preparation; Print Brochures, Forms & Business Cards; and re-design his Website – ALL WITHOUT SPENDING CASH!
Of course, all of that may cost more than $1,000 Trade, so he will want to sell more Computers and earn more Trade Dollars to spend. However, that is not a problem at all.
When XTrade Members need to Purchase, they Search the XTrade Member Directory First so they can SAVE CASH! SPEND TRADE!
Most business operate at less than full capacity. Some even as low as 50% - 60% of capacity. This means adding new Customers will not greatly increase your expenses, but may dramatically increase your profits! This is where XTrade comes in. XTrade can help by providing YOUR Business with MORE Business.
When you are an XTrade Member, you are part of a Business Network that will bring Members to your door having Trade Dollars to spend NOW!
2. Who can trade?
Any educator, business or person that can offer a product or perform a service can apply for an account with XTrade.
You must agree to the trading rules and be fair and equitable in your dealings with other XTrade members, just as if they were cash customers.
XTrade is building a network of educators, companies and people that understand trade and want to have the numerous benefits it cam offer.
3. What does it cost?
The XTrade Lifetime Membership costs $499, but for a limited time, we are offering it for $199.
There is no annual renewal, and no monthly fee in cash. We charge an Account Fee of $10 per month, payable in Trade Dollars.
Your only other cost is our Transaction Fees, which are 4% of your sales. For example, if you make $1,000 in Trade sales for the month, your Transaction Fees will be $40. Transaction Fees are paid in Cash, and can be debited from your Checking Account, or Charged to a Credit Card.
4. When are the Transaction Fees processed?
Member statements are emailed on the 1st of the month. Fees are electronically processed to a Member's credit card, debit card, or checking account on file with Trade between the 2nd and the 5th of each month.
If fees are not paid by the 15th, a $10.00 late fee will be charged to the Account, and a Second Statement will be sent.
5. Why would I want to accept Trade Dollars instead of Cash?
You're not accepting Trade instead of Cash. You're receiving new Trade customers in addition to your Cash customers.
If you have idle time in your week or your shelves are overstocked, why not accept Trade Dollars?
You can spend this new found revenue to offset business expenses, pay employee incentives, or enhance your quality of life.
And quite often, Trade Clients will refer their Cash paying friends and family when they enjoy the great service you provide them.
6. Do I have to pay Taxes on the Sales I make with Trade?
Trade exchanges are required by the IRS to report all Trade and Barter Sales at the end of each year.
XTrade Members receive a 1099B at the beginning of each year for their sales made in the previous year, but you can also view your monthly statements online.
Just like with Cash Sales, there are business deductions you can take when you use Trade Dollars for Business Expenses.
7. How is Trading with XTrade better than direct trade?
XTrade eliminates the restrictions and downfalls of direct trade. For direct trade to work, each person must want what the other is selling at the same time.
With XTrade you are not limited to Buy from the Member you Sell to. You can use your Trade Dollars to purchase from ANY member.
In addition, XTrade Membership brings your Company new Sales to new Customers. You can used the new found revenue to minimize your Cash outlay for everyday Business Expenses.
8. Why should I pay Cash for my Products and sell for Trade Dollars?
In every Business there is a Cash cost of doing business. With Trade you receive full retail value for your Products and Services.
If you are in the Service Industry and have empty appointments, you still have fixed costs of rent, electricity, salaries, etc. You pay these costs whether or not you have customers, so why not bring in Trade Clients to fill in the empty appointments. After all you can't sell today's empty time tomorrow.
If you are a Retail Store that purchased 100 items at $10 each and sold 90 of them for $20 each, you've covered your cash costs and realized a cash profit. Now you have 10 items just sitting on your shelves. You can put them on Sale for $10 each in Cash and just break even, or make them available for Trade Dollars (full retail, not sale price) and have $200 Trade to spend.
Restaurants have empty tables, Hotels have empty rooms, and Radio Stations have empty time. We could go on and on. Nearly every Business has unused capacity. Why not turn that unused capacity into Trade Dollars you can spend?
And remember, when customers are coming through your doors, they always bring more customers.
9. How can I pay my Rent and Utilities with Trade Dollars?
The Cash you SAVE by using Trade can be used to pay for those expenses that are not payable in Trade dollars.
For example, you can pay for a Mechanic, Advertising, and Dental Care all on trade. The Cash you save on these expenses can be used to pay for your Rent and Utilities.
Or perhaps you can use your Trade Dollars to design a new Website that attracts more Cash Customers.
Trade is a powerful business tool that will increase your cash flow.
10. How should I price my Products and Services?
The price you quote to Trade Members is the same price you would quote to a Cash paying client.
Trade is simply another method of payment, just like checks or credit cards.
Remember that business owners are educated shoppers, and that price gouging is not allowed in XTrade.
11. What if I need to purchase before I have earned enough Trade Dollars?
Just like a bank, we encourage businesses to apply for an Trade Credit Line.
Unlike a bank, we do not just look at your credit score or your past history to determine your eligibility. We look at your future potential for making Trade Sales. Because of this, it is often easier to obtain a Trade Line of Credit.
If you qualify for a Credit Line, you can begin purchasing immediately. You can also use your Credit Line to expand your Business or form a new Business Venture where traditional funding may not be available.
12. Does XTrade provide support?
Yes. Our Customer Service is always available by phone or email. In addition, you may contact your Salesperson with any questions.
We host Free Conference Calls periodically to help you learn how to maximize Trade for your Business.
We will give you a tour of the Software, and show you how to use it. We will assist you in adding items to the Marketplace.
We will make your Profile is presenting your Business correctly to other Members.
To sum it up, we will make sure you have all the support you need to use the XTrade tools to promote your Business.
13. Can I sell for part Cash, part Trade?
Yes. We do not dictate to you how to run your Business. However, we would like to have the opportunity to show you the advantages of accepting 100% Trade.
Of course, there may be some Products and Services with low profit margins, where you cannot accept 100% Trade. Also, some high dollar items may not be sold for 100% Trade. We understand that you have to earn enough Cash to pay your expenses. This is why we leave it under your control!
You need to disclose clearly in your XTrade Profile, the percentages of Trade that you will accept, so that other Members will not be confused.
When you want to purchase Products and Services from other Members, you probably want to purchase them for 100% Trade, if possible. Your Customers are looking for 100% Trade also, and you will sell more if you sell for 100% Trade.
Any Products or Services XTrade promotes in the Global Marketplace must be at 100% Trade, unless the item sells for more than $2,500. Listing Products and Services in the Global Marketplace exposes your Business to over 50,000 potential Customers through our Global Trade Alliance.
14. Who pays for Shipping?
Sales Tax, Tips and Shipping are usually paid by the buyer in Cash.
Always get Shipping and Sales Tax paid up front, before shipping out an item.
15. Why do you ask for my Social Security number or Federal ID number?
The Tefra Act designates Trade and Barter Exchanges as third party record keepers, the same as banks and credit card companies.
IRS regulations dictate that Trade and Barter Sales are the same as cash sales, as the seller is receiving revenue that can be spent just like cash to purchase products and services.
Therefore, Trade and Barter sales are taxable income that must be reported to the IRS by barter exchanges.
By February of each year, XTrade will provide each member a 1099B Form detailing their trade sales for the previous year.
In March of each year year, XTrade reports all income from Trade and Barter sales to the IRS, as required by law.