The Barter Company
Part 2 of 4
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If the client can directly affect a trade for its product with another that produces a product or service needed by the client, no other company or third party need be involved. The principals of the two companies can make the exchange.
But since this does not happen often, and since client company executives are not running a business to "trade" goods, it is more efficient to use PLI to select a barter company familiar with the client's product and the class of trade in which the client conducts its business.
Acting as the "middle man" so to speak, such a company would be familiar with distribution options within the product category and be able to generate a sale of product for the best value within the shortest period of time. Through existing relationships and previous transactions, the barter company will have previously leveraged its trades to the point that it will own media time, services, and other product that might be used to fulfill obligations to the client.
And, in most cases, a well-respected barter company will find a way to include a portion of cash as payment to the client, keeping the receivable on other product and services to a minimum.
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