Thoughts on service-for-asset exchange model.

WhyFhy

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Quote from: stompix on January 20, 2024, 01:27:51 PM

Quote from: WhyFhy on January 20, 2024, 12:01:07 PM

I lease 13 acres , own 1. Get it maintained for free, I keep 33% of the hay. Split it 50/50 with owner .
He gets taxes paid while his property vest , I get to use 13 acres. My buddy gets free hay(hey pays for fuel and has a farm just up the road). I make money just being in a good position. And I'm on a 4 year lease on the land without ever dropping a cent.

Ok, are you actually doing this or are you talking as an example because right now reading all this as a former farmer I feel dizzy and not from drinking some exquisite stuff, there are way to many questions there that would simply be useless if this is just virtual land project area!
I mean, for real.....what the hell is this?

And furthermore, this is not what you were talking in the first place, your "example" is simply land lease with a lot of unnecessary steps and it's not makin a comeback since:

Quote

According to data from the National Agricultural Statistics Service, in the United States almost 40% of farmland is leased.

You're promoting this new invention called the wheel?

It's not an example. I'm actually doing this. The only metaphor was eggs for sourdough.

You lease land, you monetize it. I don't want livestock responsibility so I got creative.
13 acres isn't much to start with so crops where a no go.

My primary goal it to find ways to keep it subleased untill I can outright buy it.

Maybe thinking pessimistically closes a lot of doors. Maybe that's why a lot of farms are selling out.

Just showing how symbiotic relations can work and can create a win win without spending a dime.

The only way this seems like it would work in an official capacity is a who you know situation.

As a few have mentioned before , I think building rapport would be the best way to proceed.

stompix

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Quote from: WhyFhy on January 20, 2024, 12:01:07 PM

I lease 13 acres , own 1. Get it maintained for free, I keep 33% of the hay. Split it 50/50 with owner .
He gets taxes paid while his property vest , I get to use 13 acres. My buddy gets free hay(hey pays for fuel and has a farm just up the road). I make money just being in a good position. And I'm on a 4 year lease on the land without ever dropping a cent.

Ok, are you actually doing this or are you talking as an example because right now reading all this as a former farmer I feel dizzy and not from drinking some exquisite stuff, there are way to many questions there that would simply be useless if this is just virtual land project area!
I mean, for real.....what the hell is this?

And furthermore, this is not what you were talking in the first place, your "example" is simply land lease with a lot of unnecessary steps and it's not makin a comeback since:

Quote

According to data from the National Agricultural Statistics Service, in the United States almost 40% of farmland is leased.

You're promoting this new invention called the wheel?

WhyFhy

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Quote from: stompix on January 20, 2024, 07:27:05 AM

Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

The possibilities are kinda limitless.

It's exactly the other way around, the possibilities get limited a dozen times over!

Would you go to the market to buy meat, potatoes or milk or would you search for a guy
- that needs to clean his house but he offers you chicken mean instead of pork
- a guy that needs to have a cabinet installed but he offers 3.5% mils not 1%
- a guy that indeed has the potatoes but he is asking for someone to ick him up from the station exactly when you go to work?

Barter was abandoned exactly because of this, people don't really want somebody's else exact stuff, if that stuff is precious then it already has a better buyer and the other guy can find your stuff probably cheaper in this case, so why bother?

Quote from: Hewlet on January 20, 2024, 06:25:59 AM

I have also witnessed a similar situation as this when someone owns a land he doesn't have the financial resource to develop, he gives it out to farmers to plant on while the farmers cultivate the soul and gets of the proceeds, the owner of the land gets a small portion of the outcome of the proceed say 10% and also has someone that keeps his land cleared and free from grases.

That's not barter it's land lease and it's pretty common everywhere, my parents lease land from neighbors every 5 years, 40% of the land in the US that is used for farming is leased, although overwhelmingly for $ not direct crop.
OP is looking at something different, not stuff like renting for commissions.

I feel symbiotic relationships are making a comeback, the point of this post was how to make it comeback in an official capacity.
I can trade eggs for sourdough all day in an un-official capacity.
I lease 13 acres , own 1. Get it maintained for free, I keep 33% of the hay. Split it 50/50 with owner .
He gets taxes paid while his property vest , I get to use 13 acres. My buddy gets free hay(hey pays for fuel and has a farm just up the road). I make money just being in a good position. And I'm on a 4 year lease on the land without ever dropping a cent.

stompix

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

The possibilities are kinda limitless.

It's exactly the other way around, the possibilities get limited a dozen times over!

Would you go to the market to buy meat, potatoes or milk or would you search for a guy
- that needs to clean his house but he offers you chicken mean instead of pork
- a guy that needs to have a cabinet installed but he offers 3.5% mils not 1%
- a guy that indeed has the potatoes but he is asking for someone to ick him up from the station exactly when you go to work?

Barter was abandoned exactly because of this, people don't really want somebody's else exact stuff, if that stuff is precious then it already has a better buyer and the other guy can find your stuff probably cheaper in this case, so why bother?

Quote from: Hewlet on January 20, 2024, 06:25:59 AM

I have also witnessed a similar situation as this when someone owns a land he doesn't have the financial resource to develop, he gives it out to farmers to plant on while the farmers cultivate the soul and gets of the proceeds, the owner of the land gets a small portion of the outcome of the proceed say 10% and also has someone that keeps his land cleared and free from grases.

That's not barter it's land lease and it's pretty common everywhere, my parents lease land from neighbors every 5 years, 40% of the land in the US that is used for farming is leased, although overwhelmingly for $ not direct crop.
OP is looking at something different, not stuff like renting for commissions.

slapper

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You're exploring barter in a corporate suit! Treat it like chess. You must calculate each step for mutual gain. Partner with the property management firm, not a rival. You're providing value, not just a service. Show the numbers. Renovations enhance home value, right? Show how this improves their assets over time. ROI matters. Make it clear and crisp

Let's discuss service exchange equity. It gets more fascinating here. As a contractor, you may invest in their firm. Beware, this path is complicated. You must comprehend the company's finances, market position, and growth possibilities. The goal is to paint a picture of future revenues and sustainability, not simply walls. Knowledge is power, and foresight is your best friend in finance

Hewlet

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Quote from: Zlantann on January 19, 2024, 01:15:31 PM

This barter system is very popular in my location, especially in the property business. Due to the increase in population, there is a fast rate of urbanisation. Most people who have massive lands would hire the services of town planners, surveyors and civil engineers. These personnel would help the owners of the land to plan, survey and make the land viable for sale. Most of these landowners are poor and cannot pay for these expensive services, so they normally reach an agreement with these experts to allocate some portion of the land to them. As much as the lands that will be allocated are enough to cover the cost of the work done and there is profit from the agreement then it is a good deal. What you have to do is simply check how much it will cost to render the service, compare it with the monetary worth of the commodity that will be offered and make your decisions. However, it is important to have a legally documented agreement before engaging in such barter exchange.

yeah, this is also very common in my locality.

I have also witnessed a similar situation as this when someone owns a land he doesn't have the financial resource to develop, he gives it out to farmers to plant on while the farmers cultivate the soul and gets of the proceeds, the owner of the land gets a small portion of the outcome of the proceed say 10% and also has someone that keeps his land cleared and free from grases.

It's the barter system that was particularly dominant in the ancient days when money was not in use and some great economist have started delving into it to look for ways of still using it to their advantage to solve the problem of the present.

Wexnident

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

~

Soo uh... bartering? It's not anything new. As you've said, it's limitless so it was the first afaik thought of method for people to trade. What we have now in the first place is an evolved form to simplify the method we put value in items/services since at some point in time, they probably realized that bartering goods in exchange for another good has its limits, namely with determining what value it has in the first place. While I don't know how often it happens to others, I've seen various similar instances, mainly on social media of such exchanges happening.

If you wanted it to be a legitimate service, then at most you'd actually be the middleman between the two parties but at that point, wouldn't social media have done it already? And for free at that.

icalical

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I think it only applicable if the service was a high-skilled and the asset also came with big responsibility, for example a person could only ask for stock payment if he is willing and have the ability to become at least executive director, board, or higher. If the person only have the ability to become like manager or below I don't think the people have leverage to ask for asset as payment. Mainly because those position will not be affected directly by companies condition, in most company their financial condition will only affect higher position like CEO, or Board, and will have less effect on low-level position

bluebit25

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

The simple theory is that the parties reach a contractual agreement and the important thing is the valuation to make it legal. Like you can't exchange a pen for a car, it's similar to money laundering. Basically, the form of commodity conversion always exists in the financial system.

Perhaps some investment programs like "shark tank" will let you see this issue more clearly. Ignoring the show issue, it also somewhat simulates the deal between the parties.

tabas

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Quote from: WhyFhy on January 19, 2024, 12:06:08 PM

Quote from: tabas on January 19, 2024, 12:01:48 PM

This type of bartering is more popular in social media nowadays and more popular with the influencers that have huge following, it's an x deal for which they call it. IMHO, if your company is just starting out and you're targeting companies for having this type of barter, you'll take time until you find a good deal. It's best to start with the small companies that don't have that much but you can use them to be added to your portfolio and from there, you know the drill until you become popular or have built your reputation for which they'll see the worth and value of your offer and service to them for any goods you like them to exchange for your service.

This is sound advice and also the strategy we are currently utilizing.

Setting the table if you will.

Good luck. I'm not good in the actual business but that's my observation. I guess that you'll learn more when you started doing so and you'll meet a lot of fabulous people that will be added to your network. Another one that I have watched is about the power washer guys.
They clean the every side of some random guys house and they do it for free, in exchange, they'll ask for permission to film it and that's their content that will be uploaded to their socials.

Zlantann

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

This barter system is very popular in my location, especially in the property business. Due to the increase in population, there is a fast rate of urbanisation. Most people who have massive lands would hire the services of town planners, surveyors and civil engineers. These personnel would help the owners of the land to plan, survey and make the land viable for sale. Most of these landowners are poor and cannot pay for these expensive services, so they normally reach an agreement with these experts to allocate some portion of the land to them. As much as the lands that will be allocated are enough to cover the cost of the work done and there is profit from the agreement then it is a good deal. What you have to do is simply check how much it will cost to render the service, compare it with the monetary worth of the commodity that will be offered and make your decisions. However, it is important to have a legally documented agreement before engaging in such barter exchange.

WhyFhy

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Quote from: tabas on January 19, 2024, 12:01:48 PM

This type of bartering is more popular in social media nowadays and more popular with the influencers that have huge following, it's an x deal for which they call it. IMHO, if your company is just starting out and you're targeting companies for having this type of barter, you'll take time until you find a good deal. It's best to start with the small companies that don't have that much but you can use them to be added to your portfolio and from there, you know the drill until you become popular or have built your reputation for which they'll see the worth and value of your offer and service to them for any goods you like them to exchange for your service.

This is sound advice and also the strategy we are currently utilizing.

Setting the table if you will.

tabas

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This type of bartering is more popular in social media nowadays and more popular with the influencers that have huge following, it's an x deal for which they call it. IMHO, if your company is just starting out and you're targeting companies for having this type of barter, you'll take time until you find a good deal. It's best to start with the small companies that don't have that much but you can use them to be added to your portfolio and from there, you know the drill until you become popular or have built your reputation for which they'll see the worth and value of your offer and service to them for any goods you like them to exchange for your service.

avikz

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

It's called bartering and it's the most oldest mode of value transfer. Just the goods and services were upgraded but the basic intent remains the same. In My City a lot of such trades happen quite legally. I am sure it is legal in other parts of the world as well. The only thing you need to keep in mind that whenever you are offering goods or services in exchange of something, that goods or services should bring similar value to the other party. The concern is that the value is subjective and often changes from individual to individual.

Before beginning, check with a lawyer if such kind of trades are legal in your province or not. Otherwise it might bring in legal troubles for you.

komisariatku

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

The concept of bartering has been around for a long time, even before the money system was introduced, but this method is not effective because the value of goods is not easily known.

In my opinion, currently bartering is less effective, it is easier to use banks or other financial institutions as intermediaries. For example, the mortgage system in buying a house is actually like a barter concept, the buyer does not have the money to buy a house but he borrows money from the bank with collateral for the assets he owns, then the bank will pay for the house in full, then the buyer only needs to pay the house in installments to the bank. The simple transaction is that the buyer buys a house with the assets he owns and is facilitated by the bank, this is like bartering

franky1

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Quote from: WhyFhy on January 18, 2024, 02:50:25 PM

How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

bartering has been around for eons
in the past it never really works well with national chains, because their accounts department need to trace all transactions for tax. so end up having to set up contracts and such, meaning in-showroom supervisors have no decision making privileges of the product prices vs sweat equity/labour
it works best with sole proprietors. because sole proprietors own the business so can judge the value of labour.

if you were to pitch it.. find out who in the business is the decision maker and set up a meeting with them

EG a car dealership would be the franchise owner not the in-showroom supervisor

WhyFhy

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How would you pitch something like this to let's say a property management company if you offered general contracting services?
For example you'll renovate a house in exchange for a property/land parcel they own. Or a vehicle.in exchange to paint a dealership.
Or give service for equity/stake in a company. The possibilities are kinda limitless.
This would be done in an official capacity. Not sole proprietor.

Topic: Thoughts on service-for-asset exchange model. (Read 135 times)