TC50: Short On Cash? Startups Can Trade Goods And Services Instead Of Money On TheSwop
Because exchanging goods and services this way can be a tricky business — you wouldn’t want to swap time with one of your extremely talented developers for work by a shoddy designer — TheSwop features one-on-one videos of each of its subscribers so that you can see the “whites of their eyes” before you consider a deal. Each subscriber also has a transaction history, as well as reviews left by other members. Another key feature, given the nature of many of these services: the site offers a map of each of its possible service providers, with paid subscribers (who are likely more trustworthy than free users) highlighted with larger markers.
Using the site is simple: you run a search for whatever you’re looking for, and then use the site’s virtual currency (called “favor points”) to trade for that. You can also perform transactions with cash if you’d like — the site doesn’t force you to use its platform, so you can take things offline to finalize the deal.
Roelof Botha: I don’t like it. Money was invented for a reason, we’ve seen people try to use beans etc. and it doesn’t work. I wouldn’t invest.
Marc Andreessen: Why limit it to startups? How do you ensure currency keeps its value?
A: If you’re a large company you’d probably use a larger barter exchange model. When you enter the site you get a certain number of points, you can buy more, but we won’t just flood the system with points.
Tony Hsieh: How do you make money, or at the end of the day do they owe lots of favors?
A: We’re freemium. Everyone can use for free, but you can pay to every larger map markers, other premium features.
Paul Graham: Why don’t you just let people buy favor points.
A: We’re considering that.
Andreessen: One thing barter companies in dot com era discovered is that there is a role for price discrimination — there are certain things that aren’t otherwise going to be available on the market, or would be charged for differently.
A: These would be the types of services that every startup needs.
Video:
http://www.ustream.tv/flash/video/2163878
Outside Coverage:
TC50: Startups can trade favors at TheSwop.com VentureBeat.
TechCrunch50: TheSwop provides Exchange Facilities for Food and Service for Startups Trends Updates.
TheSwop – It’s Socialism, Localized #tc50 Techgeist.
theswop.com Webdev2.0.