It is tempting to exchange business services with other soloists. It seems logical to trade. It preserves cashflow and is a great way to get us all the lawyer/ accountant/public relations consultant we need to run our solo practices.
But is using a contra deal as a form of business exchange more trouble than it’s worth?
I think so.
From a distance, the main problem is that the various service providers in your network almost certainly use different methods to calculate their fees and this complicates the business exchange process. Some have an hourly fee, others charge all-up for ‘the job’.
But that’s nothing compared to having to tell your would-be accountant that he or she needs to work for three hours at their rate of $85 per hour as a trade for one hour of your time at $275 per hour.
And then there are products. Another complicating factor. If you seek to exchange your products for someone else’s services or your services for someone else’s products, should the product price be valued at retail or wholesale or cost? And what will be the wholesale cost of your service provision?
If you want to support the other soloists you know and use and recommend their products and services, do it.
Engage them commercially and hope they will support your business, too. Perhaps a ‘mate’s rate’ or a ‘network discount’ is appropriate, but in my opinion it is cash that fuels businesses, not a barter system.
Once you’ve been a paying customer of a fellow soloist, you are in a great position to enthusiastically recommend their service or product. You could use word of mouth or even offer a written testimonial. Not only is this great karma, it’s an ideal way to promote the solo sister or brotherhood you’re part of.
Check out this awesome article on written testimonials – Ed
In fact the results of a Flying Solo poll tell us a majority of referrals come from former clients, proving you are in the best position to spread the word when you have paid for a fellow soloist’s product or service with your own money…and been delighted.
“ Is using a contra deal as a form of business exchange more trouble than it’s worth? ”
Karen Morath of M Power consults, trains, speaks and coaches in public relations, personal effectiveness, life balance and all things empowering.
