Surprising Questions For Ask Bartercard

Rather surprisingly, Ask Bartercard has been asked, “Is Bartercard a pyramid based model or a Ponzi scheme?” This is surprising, only for the fact that Bartercard was founded on the Gold Coast, Australia, in 1991, and has been enjoying rapid growth ever since. The three founding Directors shared a dream and vision, to make Bartercard the world’s largest trade exchange, expand globally and sustain a brand identity with a street presence.

Following its creation in 1992, Bartercard New Zealand became the first international licensee, through the development of a sophisticated licensing model that has been efficiently replicated throughout the globe. So, no,

Bartercard is not a pyramid based model or a Ponzi scheme. As any business does, they seek to bring on new members to expand the network and provide new trading opportunities to their members, as well as replacing business operated by members that may have sold, closed or are otherwise unable to continue operating. There is no hierarchical setup where existing members gain rewards from new members further down a ‘hierarchy’ using the network. Their philosophy, business model and pricing structure are based on members making transactions, rather than merely becoming a part of the network.

To explain, the Bartercard concept uses an alternative, electronic currency (Trade Dollars) that is exchanged between members to pay for goods and services to improve cash flow (cash be conserved for other business expenses), reduce cash expenses (by using Trade instead) and attract new customers. Trade Dollars are a well-recognised and accepted method of payment in New Zealand, and one Trade Dollar is equivalent to one New Zealand Dollar for all accounting and taxation purposes.

Bartercard is a registered Financial Services Provider and operates in a similar way as a credit card or another bank account. When it comes to accounting, there is no difference between cash and Trade Dollars, with sales being recorded as income and purchases being recorded as an expense or asset, so for more information on how does Bartercard work, Bartercard members and getting new customers please go to http://askbartercard.co.nz .