Contra
Deals - How they can benefit your business and how you can keep things on an
even keel.
Quite often I see new entrepreneurs
starting out in business who find it difficult to decide where to spend their
limited amount of start up funds (if any). A great way to get everything done
that you need, such as a website, is via ‘contra deals.’ Quite often these can be overlooked and a
valuable opportunity missed. Below are my tried-and-tested tips from experience
so that you engage in a win-win situation.
So what is a ‘contra deal’ exactly? Contra
deals are certainly not about working for FREE. It involves two businesses
collaborating and joining together to swap goods or services required to
achieve and business outcome and goal without exchanging cash. Not only is it a
good way for startup businesses to get started at minimal cost, it is also
useful for product or service testing in exchange for advertising. For example, if you are new within the service
industry or have a new product that needs testing, contra deals are great
marketing strategies to swap testing to:
·
Gain recommendations
·
Gain referrals and new
customers or clients and
·
Obtain free advertising and
promotion through the testers network.
I have trialed several methods of swapping
services and products from hour-for-hour, dollar value for dollar value and
project for project. Each of these methods were used in different circumstances
and to achieve different outcomes. It is
important that you weigh up your options that will gain the best value for you
and your business.
For example, you may be a personal trainer
who needs assistance to build and online presence such as a website and you’ve
heard of a website developer who’d like to lose the flab of 2012 and get fit in
2013. If the website developer charges a set project rate of $1,500, then you
as the personal trainer can evaluate your options as to the best swap that will
benefit you and then make an enticing offer to the website developer. The
personal trainer who charges $80 per hour might offer 19 hours of personal
training or 6 months of free weekly one-on-one training.
The important thing with contra deals with
whatever your deal is to ensure:
1.
You are both clear on the deal,
expectations and outcomes;
2.
You have a set time frame to
complete it in; and
3.
Have a written agreement in one
form or another. I recommend a set out service agreement or clear email
outlining the swap specifics and project details. This way it is clear that
anything over and above can be charged for.
Speaking of contra deals, I am currently
looking to have some professional profile images taken for my Linked In account
and website on the north side of Brisbane. If you know a photographer who is
looking for a website or some help with branding be sure to pass on the details!
Note
- As I am not a bookkeeper nor accountant you should always check with your
accountant in regards to taxation etc. when engaging in contra deals.
Thanks Katie from Absolute Assistance - Virtual Assistant