Exchange of Services: Good or Bad for Business?
Star Castle Studio provides artful entrepreneurs and makers with tips and custom-created visuals needed to beautifully run a professionally branded business and make an unforgettable impression online.
Ever thought about exchanging services with other service providing business owners? In the current unstable economic situation we all find ourselves in, it’s certainly something to look into. It can help cut costs, or at least reduce personal expenses. We all know that when you’re running a business, it costs money to make money.
Did you know there are many other benefits to exchanging services than simply saving some cash? Service exchanges can help boost your reputation, get your business more exposure, and help you with networking! Read on to learn more about the good, the bad, and the ugly of exchanging services in business.
Good for business? 👍🏻
Trading services for services with someone can be tricky situation that should be approached with extreme caution. For starters, get the deal in writing! Even if you have a good relationship with this other business or person, make sure both parties feel they will be receiving fair benefits.Each party involved in the exchange should be benefitting from the agreement. Since you’re not exchanging money, it can be hard to quantify the ‘value’ of the work you deliver and/or the work you request, so try focusing on how much you would’ve been willing to pay for the service the other business is offering.
Trading services isn’t just for when you are struggling with finances. You started a business to serve people. Plus, we all know entrepreneurship can be a lonely world... getting someone to help you with your goals, while helping both businesses flourish can be a win-win for everyone involved!
It’s important everyone feels taken care of in the exchange, not only to maintain a good working relationship, but also to gain a loyal advocate for your business! Remember, exceeding expectations for this person could lead to them actively sending you referrals, raving about your business, and/or they might want to book you for more work down the line!
When wrapping up the exchange, be sure to get a testimonial or at least get some sort of recognition out of the deal so that you maximize the outcome for your business!
Great for: new businesses! 🎉
If you’re just starting out as a business, doing an exchange of services allows you to produce work samples in return for a service you would have paid for anyways! It also gives you the experience of working with someone else. For example, I see way too many newbie designers create ‘fake’ portfolio work to showcase their talents. If you’re just starting out, benefit from an exchange of services: create actual work for a client, and receive help with something else in your business (that you probably would’ve paid for anyways)!
Working through the process you’ll be doing with paying clients down the road, is a great way to dip your toes in the water. We all know communication and pleasing the client are incredibly important lessons to helping your business grow. & The best way to get better is through experiencing it!
Bad for business? 👎🏻
A common concern for business owners when it comes to exchanging services is the fear of checking out (on either side of the deal)! If it’s not a balanced exchange on your end, you may not put in as much effort as you would for a paying client, leaving your colleague less than thrilled with the final results.
Make sure you put in the same level of professionalism in your work as you would with any of your other clients!
The other side of this potential downfall of ‘checking out’ is you could get lower quality work if the other person involved feels like they are getting less than a good trade. That’s why it’s so incredibly important to triple check that everyone involved is getting what they view as a fair ‘payment’ for the work they’ll be putting in.
Also, be careful of exchanges with close friends. They make take advantage of you if they get too comfortable (sending over countless changes, requesting additional work, etc). Be careful that you make the trade equal and fair for everyone, and don’t just give handouts (even if they are your friend)! Be clear about exactly what deliverables will be included in the exchange, as well as where the trading of services ends. Any additional work needed should incur an extra cost, or require more compensation in services. Make sure everything is set in stone about how much you’re going to give.
My most recent exchange:
I had a very interesting situation fall into my lap recently and it’s turned out so wonderfully that I wanted to share some of the experience! My husband and I have been working with a personal fitness trainer for quite some time now, and had just recently come to the end of the paid contract through the gym.
Our trainer shared with my husband that she was running a training business that really needed some help regarding her website, branding, the whole nine yards! My husband reminded her what I did for a living and we all got to talking…
A personal trainer can be quite expensive outside of gym deals.
Having a brand and website organized and built can also add up.
So we decided to trade services!
We talked it out, did the math, and came up with an awesome agreement that has been really helping out everyone involved! She is helping us get and stay fit, and I am helping her business look great online!
So, is it right for YOUR business? 🤔
Exchanging services with a fellow business owner has the potential to boost your reputation, get you some exposure, and help you with networking, but be cautious of how you go about the trade agreement. If you encounter someone who comes across as checked-out, uncaring, or purely focused on how much $$$ they’ll save, there’s a strong likelihood that the outcome will never really be committed to.
If it doesn’t feel right, don’t do it.
& If it feels like a win-win all round, it probably is!
There is quite a bit of trust involved with this method. Trading services can be considered a bit old school, but I find that in certain situations it is a refreshing way of providing value. Make sure to be clear on the benefits it will bring to your business.
Quick take-aways
Get your agreement in writing somewhere, check in consistently with your trade partner and yourself to make sure each end is holding up their side of the deal to a level of satisfaction that everyone is happy with! Take it slow and communicate, just like in any other type of relationship!
There is no right answer about this way of doing things.
Exchange of services isn’t always a good idea.
If it doesn’t feel right for you then don’t do it.
Exchanging services can be a great way to help people that may not be able to afford working with you otherwise. It allows your business to serve more people, in different ways, as well as builds long-lasting relationships with fellow business owners (hooray for painless networking)!
Have you exchanged services with another service provider?
Weigh-in on your experience!
Head over to Instagram and tell me how the experience went for you! Was it good or bad for your business? Would you consider doing it again?
If you’ve been looking to update your visuals, but are worried a designer may be out of your price range, please know I’m always willing to discuss exchanging services. After all, we’re all in this together.
