History of TradeAuthority
In 2000, a Baton Rouge based barter exchange by the name of PartnersOne, Inc. (Partners) was begun by approximately 12 men from area small businesses. All having been members in a previous exchange and seeing the inherent difficulties with maintaining the barter dollar value compared to US currency in a singularly owned exchange, this group of men developed a means of structuring an exchange without the negative influences brought on by individual ownership. With individual ownership, policies and procedures for the barter exchange are sometimes implemented by the owner in his or her own interest that eventually tend to devalue the barter dollar, leaving members of the exchange with a reluctance to take more of these barter dollars, the ownership of the exchange with excessive barter dollar debt, and an exchange that struggles to promote a high volume of trading. With Partners, the exchange was owned by the membership and its elected Board of Directors, monitored and controlled by the same, and employ an Executive Director to manage the trade. Since this Executive Director has no ownership, there is no influence for him or her to allow or disallow transactions based upon self interest, but rather based upon the overall health of the exchange. Thus, Partners has grown to well over 600 members in the past 13 years with an annual trade volumes of over $9.5 million, an annual average of about $15,000 per member. This per member trade volume is well over twice the national average of other trade exchanges. The normal transaction fee for trade exchanges is often as high as 14% of the total sale. Partners charges 10%, but has been so successful that for the last 9 years, it has returned anywhere from 1 to 4% back to the membership resulting in transaction fees in the 6 to 9% range, nearly half that of other exchanges. As an example of its success, Partners completely purchased a $125,000 (cash) office within it 5th year of operation in addition to returning nearly $180,000 back to the membership in that same year.
In 2004, three of the original founders of Partners began plans to acquire proprietary rights from PartnersOne in order to duplicate the success in Baton Rouge by starting similar exchanges, first in surrounding cities, then eventually in cities across the country. TradeAuthority, LLC was incorporated in the State of Louisiana on July 27, 2004. It was conceived by David L. “Chip” Davis, C. Farrell Frugé, and E. Paul Melancon (the “Founders”), with a mission to take the principals and practices learned through development of Partners and produce systems to enable duplication of like exchanges in other cities. One key objective was to develop a web-based data operation management system capable of facilitating the more efficient operation of existing local barter exchanges and the development of new barter exchanges throughout the U.S. This proved to be an enormous task. However, in 2010, the first phase of this system, QuikTrade, was completed and TradeAuthority was further capitalized for the purpose of extending that software and bringing the Partners modeled exchange into new territories.
We do not seek to own or operate local barter exchanges, but rather provide start-up know-how for the local barter exchanges and continued support and services, including QuikTrade. TradeAuthority intends to actively help recruit staff and members in selected cities for the purpose of assisting them organize and develop their own successful exchanges, with ongoing support and services to be provided by TradeAuthority.