On January 15th I published a story as part 2 of an experiment to trade a brand new computer and some furniture to anyone that wanted it. I posted the items on Craigslist, U-Exchange, BarterQuest, SwapTree, and PayMeWithAChicken. I used the same descriptions, the same pictures, even in the video I tried to post to PayMeWithAChicken. The pictures are descriptive. The descriptions tell enough about the items to make a good buying decision. Posting the same things on the same day on five different barter websites, I assumed I would get some action and have this stuff traded within a couple of days…

Two and a half weeks later, my computer is still in the box in my office and the furniture is still collecting a bit of dust in storage. Why? What do these barter sites lack? I’ve been in and around the barter industry since 2000. I’ve completed millions of dollars in barter transactions, for myself and for clients of my barter exchange. I’ve worked directly with hundreds of businesses, helping them trade anything from a couple of gift certificates to deeded land. In my mind, I have plenty of expertise to get a simple direct trade transaction completed.

The internet is supposed to help facilitate those transactions. These websites are meant to be a place where other like minded people go to make their trades. My items, though not iPods or iPhones, are high quality and highly desirable items.

So, what went wrong?

The only answer I have come up with in the last couple of days is that direct trade is hard. It’s hard. Finding someone who has something you want, who wants exactly what you have, is a difficult proposition, internet or no internet. Even when BarterQuest sent me a couple of suggestions, it didn’t help much in finding someone who wanted what I have.

Years ago Big Vine was the web site that attempted to facilitate trades online, but on a barter currency. No direct trading, just barter currency trades. With millions of dollars in funding, it lasted a year or two and then was sold, over and over, until now what is left of those clients resides at ITEX.

My experience with these internet barter websites is not much different. What’s missing? What would make a difference?

Brokers. Trade directors. Customer service representatives. Whatever you want to call them, people on the ground making things happen. Though all of these sites are a valiant attempt at helping people barter what they have for what they want, they do not replace the interaction that must take place for people to make trades happen. People can intuitively and casually extract information from potential clients that will help them to make a connection. Computers just ask for information and to fill fields. And the more fields people have to fill out, the less likely they are to actually complete the form. It doesn’t matter why, the experiment was a failure. I traded nothing. In the end, all of the sites I posted my stuff to did not give me what I wanted: a completed barter transaction.

As more startups appear, I will continue with this exploration. Maybe one day a system will be developed to replace what I think brokers do well. Until then, my suggestion is that you are better off working with a traditional barter exchange.

barter, BarterQuest, Craigslist, PayMeWithaChicken, swap, SwapTree, trade, U-Exchange