Service Exchange is for Suckers

JDM Digital has roots in small business marketing and as such we’ve long offered service exchanges as a deal structure for small, up and coming businesses which need a digital leg up — until now.  For the second time, a client on a service exchange agreement has refused to actually exchange their services for our services already rendered.  Never again.

Before you relegate this to another one of those “I just want to bitch” posts, know that is not my intention.  Instead, let me impart a few pearls of wisdom on service exchanges as we bid farewell forever to this deal structure.

Get it in writing.

This may go without saying, but having a written contract trumps email threads and cocktail discussions in any court of law in the land.  However, even if you have it in writing, these are pretty easy to weasel out of because value on services is almost impossible to defend to a judge paid out of the county’s coffers.

Budget your efforts accordingly.

Remember that you’re working essentially for free even if the deal is structured that hard costs get paid for.  Don’t let projects on service exchanges hold up or (god forbid) lose you the big, paying deal.  These should be a bottom priority and the sooner you explain that to your client, the better.

Don’t be surprised.

Like lending money to friends (at least you know them well enough), don’t be too surprised if it just doesn’t go to plan.  It’ll be the happiest, most jovial contract signing you’ve ever had — until you ask for the actual exchange.  Then it gets ugly.

So there’s a little advice if you’re considering offering a service exchange deal.  I’m not saying they ALWAYS fail, but I wouldn’t recommend them.

As for JDM Digital, with all our strict terms, awards for business ethics, and Pro Bono work, we still came out the sucker.  Never again.