After operating the profitable Mark Two Dinner Theater in Orlando, Fla., for 15 years, Mark Howard no longer had to sing for his supper. But he's not above having his actors sing for his dry cleaning or plumbing. Ladies and gentlemen, welcome to the world of Internet barter, the digital extension of a millennia-old business practice. Where once small businesses traded in a market square, they now trade on a Web site. And this is no two-bit act--the International Reciprocal Trade Association, Chicago, estimates that as of 1998, $12.8 billion worth of goods and services were being bartered annually. Howard, whose theater and a related costume rental businesses together generate $3.2 million per year in sales, estimates he'll barter more than $40,000 worth of tickets this year, plus another $35,000 in costume rentals.
Enter the Internet, stage right. Local Web-based barter ventures are quickly going nationwide. The latest attraction: BarterNet, Woodside, Calif. It is linking local barter networks and hopes to have 100,000 small businesses registered as trading members by the end of the summer. Its first affiliate is The Exchange, an Orlando, Fla., barter company whose clientele includes 1,500 small and medium-sized businesses.