James Schramko here. Today, I want to talk about contra deals.
Now, a contra deal is a bit like a barter deal. It’s where you agree to do something and someone agrees to do something, and you exchange an equal value of services or goods. And this is the barter system. One of the things about the barter system is that sometimes, I think your supplier might not treat you just like a regular paid customer.
Because in their mind, they haven’t really got cash for it. Now, the system really only works well if you really need the thing that you’re getting and they really need the thing that you’re giving.
And sometimes, that’s not the case.
Now, you could complicate this even more and have a triangulation deal, which is a three-way deal. Now, I’ve done these, and they can be super successful, and sometimes you don’t have money. But here’s my tip: if you do have money, then try and just get a regular deal with a normal contract and pay the money.
You will probably get looked after better.