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Ormita Commerce Network Barter Exchange

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Overview presentation about the barter industry, barter exchanges, barter industry statistics, barter exchange franchise systems, barter franchises, community currency systems, local trade networks, counter-trade, offset trade, how barter exchanges should work and what the BENEFITS of barter are for business owners. Also provides a good overview about the Ormita Commerce Network – PowerPoint PPT presentation

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Title: Ormita Commerce Network Barter Exchange


1
Ormita Global Overview Strictly Confidential
Proposal
2
  • Unproductive or unsold assets are known as "dead
    capital" and there is an estimated 9.3 trillion
    dollars of it world-wide.
  • Unsold appointment time, empty hotel rooms,
    unsold venue passes, unfilled advertising space,
    rapidly depreciating stock, end-of-line items or
    oversupplied products all represent lost revenue
    which otherwise will never be recovered.
  • It is Ormitas mission to transform this
    otherwise lost profit into new income,
    investments and tax benefits for corporations.

www.ormita.com
3
  • Barter is the Largest Unregulated Financial
    Service Industry in the World
  • Non-cash trade, in one form or another, accounts
    for nearly 30 percent of the worlds total
    business.
  • 70 of all Fortune 500 companies utilize offset
    trading.
  • According to the Association of Advertising
    Agencies, eight out of ten media corporations
    engage in excess capacity exchange.
  • Approximately 65 of all New York Stock
    Exchange-listed companies barter.
  • Nearly 400,000 businesses engage in formalised
    non-cash transactions in the United States.

1. (2004)., Department of Commerce Fact Sheet.
USA DOC. 2. Schmiddgall, R.S., Damitio, J.W.
(1999)., Bartering activities of the Fortune 500
and hospitality lodging firms., International
Journal of Hospitality Management 3. American
Association of Advertising Agencies. (2003). 4.
(2004)., Annual Report, National Association of
Trade Exchanges. Fact Sheet, International
Reciprocal Trade Association. 5. Stodder, J.
(2007)., Residual Barter Networks and
Macro-Economic Stability. Renselaer Polytechnic
Institute at Hartford, Hartford CT.
www.ormita.com
4
  • Four Key Benefits of Barter
  • Reduces existing cash costs
  • It is always better to make purchases out of
    revenue generated from new sales
  • not existing cash reserves.
  • Creates value from under-performing assets /
    unsold time or capacity
  • Trade excess capacity for already-budgeted for
    goods or services.
  • Time sensitive products, space, tickets or
    services are unrecoverable if not sold.
  • Receive more value than discounting.
  • Lets participants buy goods and services at a
    discount
  • Use your spare time, excess capacity,
    depreciating inventory etc to make purchases.
  • The difference between your wholesale cost (cost
    to make a sale) and your selling price is the
    discount received.
  • Offers Interest-free, no cash-repayment, finance
  • Zero interest.
  • Repay borrowings out of new sales not existing
    cash income.

www.ormita.com
5
  • Barter Is a Unique Financial Tool
  • In Switzerland barter accounts for approximately
    6 billion USD in transactions every year between
    almost 80,000 business owners.
  • Barter survives during good times and bad and
    helps stabilise the wealthiest
  • economies of the world.
  • During Argentinas economic crisis in the 1990s
    more than 2 million members joined the barter
    movement, performing more than 7 billion USD in
    transactions.
  • Barter provides an immediate solution to
    businesses large and small.
  • Pepsi Cola once traded with the Russian
    Government the rights to their brand and formulas
    in return for exclusive rights to export
    Stolichnaya Vodka
  • Barter can be used as a way for businesses to
    convert their surplus into new
  • investments.
  • The Governments of Australia, Thailand, South
    Africa, China, Mexico etc all regularly swap
    millions of dollars in commodities every month
  • Barter can conserve cash and provide profitable
    outcomes.

www.ormita.com
6
  • Bartering Helps Save Cash

Ormita is income supplemental to the cash already
being generated by selling to existing
cash-paying customers.
  • Ormita customers do not replace cash customers,
    instead they are incremental (new) income.
  • We bring new customers to a business through our
    own marketing activities.
  • These new customers make purchases and generate
    new revenue.
  • This additional revenue is used to pay for a
    businesses existing costs, expansions,
    improvements and new acquisitions.
  • Depending on your industry type businesses are
    allowed to charge part of their transaction in
    cash

Ormita saves cash by offsetting expenses. It is
not meant as a replacement for cash and cannot be
used to pay Sales Tax and fixed expenses. Once
those expenses are covered, however, by existing
cash business, then every additional customer
through is new revenue, with a higher margin of
profit.
www.ormita.com
7
  • Bartering Supports Local Businesses
  • Ormita
  • Targets businesses which have reached a certain
    level of cash sales but which still have the
    capacity to expand output - without needing to
    increase their cash costs to do so.
  • Provides members the ability to trade their
    excess capacity or unsold inventory for products
    and services they need - without the need for
    cash.
  • Acts as a centralised broker for trading excess
    capacity by operating an online and brokered
    trade floor.
  • Promotes the trade of excess assets by arranging
    local networking meetings, producing an
    electronic and printed membership directory,
    sending email and SMS broadcasts of latest deals
    and distributing regular newsletters to
    participants.
  • Operates a bank-like system for trade
    transactions so that members do not have to
    engage in direct barter, thereby allowing them
    to sell to one member for trade credits and buy
    from another with the same trade credits.
  • Allows for trade in areas which are rich in
    skills and assets but poor in cash.

www.ormita.com
8
  • Provides a Way to Collect Debt
  • Ormita offers a unique programme which allows
    business members to
  • trade bad debts / monies owed to them for
    products or services which
  • are needed to reduce their current cash costs.
  • Allows creditors to take products in lieu of cash
    if there are no other recovery mechanisms
    available.
  • Creditors can exchange recovered products for
    goods and/or services they need.
  • Reduces costs for collection, legal fees
    interest.
  • Reduces the risk (unpaid bills, doubtful
    collections etc).
  • Maximises the value of what is returned.
  • Helps participants reduce their ongoing cash
    expenses so they can pay future bills from cash
    saved, and in a more timely manner.

www.ormita.com
9
  • Helps Businesses Beat The Recession

During periods of economic down-turn we can
provide businesses the ability to
Reduce their cash output Save on borrowings Purchase goods and/or services using their own products not existing cash revenues Repay debt with barter Pay staff-rewards in gift certificates etc Fund client entertainment and travel through barter Allow businesses to compete against the big guys Offer low-cost incentives and give-aways Buy locally and at a discount Build a network of businesses buying and selling to one another Sell goods/services acquired via barter at a lower price than standard retail Provide a new referral outlet
Expand their market-share Attract customers away from the competition Offer loyalty rewards to existing customers Trade their excess capacity for advertising / marketing Offer more products / services Retain value Turn unsold time or assets into something of immediate value Build a solid asset base Retain employees Retain customers
www.ormita.com
10
  • Despite Being 30 of all World Financial Trade
  • Most Barter Exchanges Are Poorly Run

Inflation Everyone has barter dollars but there is still nothing to buy. The Company also has the ability to spend trade dollars with no obligations to the exchange. The Company has historically spent more trade dollars than it has earned Wayne Sharpe, Chief Executive Officer Founder Bartercard. 30 September 2005 Exchange owners constantly spend money they do not own Lack of sensible credit management policies and procedures No enforcement of the rules and regulations Exchange networks being run by housewives not economists
Lack of Essential Goods and Services Barter is only useful if you use it to acquire needed goods or services. Incorrect mix of customers (not treated as a separate economy) Members not knowing what is available and lack of education Exchange owners getting the good products and services first Existing exchanges are stuck with legacy customers
www.ormita.com
11
  • Despite Being 30 of all World Financial Trade
  • Most Barter Exchanges Are Poorly Run

Over-Pricing Sellers charging more in barter. Lack of fiscal management / enforcement of policies Imbalance between supply and demand (not really a parallel economy) Cost to generate a barter dollar differs by industry (not really a parallel economy because barter dollars are not as readily convertible as cash)
High Cost To Use Typically 12 minimum in cash commission to use. Many exchanges charge monthly fees even if they did not help the customer perform any transactions that month High joining fee, high annual fees, interest on borrowing fees etc
Lack of Market Penetration In some countries penetration has reached 30 or more in the past. Caused by a lack of community involvement / understanding Inflation, poor management, historical issues have led to a perception that bartering may have less value than federally issued money
Lack of a Common Platform No coherent network of providers. Trade between different barter exchanges is rare because exchange owners prefer to keep the good stuff for themselves / own members The largest exchanges in the world (6 billion USD turn-over per annum) shun the only two associations whose memberships are severely limited
www.ormita.com
12
  • Ormita Is The Answer
  • Founded and operated by Economists
  • No deficit spending
  • No currency inflation
  • Real-world prices
  • Selective membership
  • No monthly fees and no annual fees
  • Buyer pays no transaction fees
  • Lowest overall price in the industry
  • Seller receives part of their sale price in cash
    (thereby covering the fee to Ormita and sales
    taxes)
  • Participants do not sell until they have
    something to buy
  • We own and operate our own global
    telecommunications and IT infrastructure
  • Infrastructure already in place in 36 countries
  • 24 hours a day, 7 days a week live service
  • Independent professional Board of Advisors
  • Committed to an environmentally sound, socially
    responsible future
  • Mobilises local assets and protects communities

www.ormita.com
13
  • Structure of the Business Model

Ormita acts as a clearinghouse for the trade of
excess capacities, goods and services through a
combination of online e-commerce, transaction
processing, 24 hour telephone brokering and
independent licensees. Rather than promoting
direct trade between participants the Company
brokers trades through a centralized trade
platform.
1 Transactions are recorded in a centralized ledger which records the value of the items purchased (debit) and sold (credit) - much like a clearinghouse does for stocks, or a commercial bank does for checks.
2 This ledger system utilises a trade credit as a method of accounting with 1 Trade Credit 1. (NB. Trade credits are also referred to as Barter Dollars by our competitors).
3 Just like any brokerage firm, Ormita receives a cash commission on each transaction.
www.ormita.com
14
  • Ormita Reduces Participants Existing Cash
    Overheads Every Day of Every Year
  • Ormita works with customers to return full
  • value for their excess capacity, unsold time
  • or devaluing inventory within a defined
  • time-period and as part of a buying
  • schedule.
  • We focus on a businesses existing, ongoing, cash
    expenses.
  • There are no costs until a transaction takes
    place.
  • We focus on converting a minimum of 2,000 of
    existing monthly cash expenses into barter.
  • Every customer provides
  • us with regular, ongoing,
  • solid revenues.

Example Business - Regular Fixed Outgoings Which Could Be Bartered Example Business - Regular Fixed Outgoings Which Could Be Bartered Example Business - Regular Fixed Outgoings Which Could Be Bartered Example Business - Regular Fixed Outgoings Which Could Be Bartered Example Business - Regular Fixed Outgoings Which Could Be Bartered
Monthly Quarterly Annually Once-Off
Advertising 2,000
Alarm monitoring 100
Annual employee outing 5,000
Book-keeping audit 500
Car maintenance cleaning 1,000
Cleaning cleaning supplies 400
Client entertainment 500
Employee gifts bonuses 4,000
Equipment (new asset) purchase 15,000
Legal services 3,000
Printing stationery items 500
Toner, ink copier supplies 200
Water cooler supplies 100
Website hosting internet 100
3,900 5,500 8,000 15,000
www.ormita.com
15
  • Ormita Offers More Ways To Transact

Service Comparison Service Comparison Service Comparison
Other Exchanges Ormita
Mobile Phone Alerts N Y
24 Hour Phone Banking Live Brokerage N Y
Fax Broadcasts ? Y
Email Newsletters Monthly Weekly
Printed Member Directory N Quarterly
Online Directory Y Y
Import / Export Trade Coordinator N Y
Internet Banking Online Funds Transfer Y Y
Buy Sell Online Y Y
Member Magazine N Y
Local Networking Meetings N Y
Dedicated Trade Brokers N Y
Local Exhibitions N Y
Independent Complaints Committee N Y
No-Fee Escrow Agency Services N Y
www.ormita.com
16
  • Ormita is Community Focused
  • Major partnerships with non-profit organisations
  • Enables them to trade in-kind donations free
    of charge.
  • Provides non-profits with a secondary source of
    income.
  • Provides tax-deductibility for donated goods
  • We work to offset a businesses current and
    planned expenses and only charge once we find the
    things they need.
  • Non-profit organisations act as affiliates and
    referral providers
  • Builds organic support from within the
    community.
  • Provides greater outreach to business owners
    socially responsible individuals.
  • Mobilises the local community
  • Recovers wealth from existing assets, time and
    space.
  • A green solution
  • Helps reduce waste and takes products
    off-market.
  • Meets environmental obligations for business
    owners.

www.ormita.com
17
  • Honest Service Fees
  • No joining fee
  • Why should you pay to join if you havent yet
    been delivered anything?
  • No monthly fees
  • We believe that we are a service provider and
    that members should only pay when we actually
    deliver what we offer.
  • No fees until we meet a businesses needs
  • We work to offset a businesses current and
    planned expenses and only charge once we find the
    things they need.
  • No annual fees
  • We earn our income from providing a service
    not from additional levies and charges.
  • No transaction fees charged to the buyer
  • We work to help you buy
  • Seller receives part of their sale price in cash
  • Sellers can cover their sales tax and a large
    portion of their overheads in cash.
  • Only 7 cash service fee charged to seller.
  • Sellers commission to Ormita is covered by part
    of the cash they receive from the buyer.

www.ormita.com
18
  • We Have Tailored Solutions For All Industries
  • We recognise that one size does not fit all.
  • A range of solutions for a variety of industries
  • Unique offerings for advertising, cash
    conversion, debt collection, future sales,
    lifestyle, investment market expansion
  • Revenue producing affiliate programs

www.ormita.com
19
  • Professional Leadership
  • Global Experience
  • Seasoned Business Professionals
  • Economists, Lawyers Technologists
  • Real-World Knowledge
  • James (Jim) Gielarowski
  • Experienced CEO Business Leader
  • Founder and former CEO of Pittsburgh Trade
    Alliance, one of the largest independent barter
    companies in North America.
  • American Economics Association
  • EcoMod
  • Freelancers Union
  • Internet Society
  • Kidney Foundation
  • The Association of Maintenance Professionals

Chris Cook Former director of the International Petroleum Exchange originator of the Iranian Oil Bourse Project. Lynnea Bylund Founder of Catalyst House. Founder of AdMax. Venture capitalist. Nationally recognized spokeswomen.
Marc Gauvin Founder of NetPortedItems S.L, creator of the DigitalShadowCaster technology. Serves as DMP Chair of Requirements and on Board of Directors. Xi Sun Masters in Economics and Law. Founder of Beijing Barter International. Organizer of the International Forum of Community Economic Credit Systems.
Sjaak Adriaanse Computer scientist and mathematician. Involved in several community currency projects. Maintains over 400 complimentary currency links. Chris Lindstrom Founding member of Berkshares and author on barter and community currencies. Advisor to E.F. Schumacher Foundation.
  • Daniel Evans
  • Experienced CEO Senior Economist
  • Founder and former CEO of XO Limited, one of the
    largest providers of software for the barter
    exchange industry.
  • American Economics Association
  • Canadian Economics Association
  • Commonwealth Association of Public
    Administrators
  • Economic Society of Australia
  • Internet Society
  • Midwest Economics Association
  • New Zealand Law Economics Association
  • Kidney Foundation

www.ormita.com
20
  • Good Corporate Governance
  • Sound Corporate Governance Procedures
  • Board structured to add value
  • Code of ethics
  • Business standards and codes of conduct
  • Integrity in transactional financial reporting
  • Respects the rights of licensees, partners,
    members and shareholders
  • Recognises and manages risks
  • Independent advisory board

www.ormita.com
21
  • We Own Our Infrastructure
  • Our own e-commerce systems and tools
  • Own developed and/or locally customized Trade
    Platforms, CRM systems Learning Management
    applications.
  • Unique operational, learning support tools
  • Operations manuals for all aspects of the
    business.
  • Standards guides.
  • Process flows guidelines.
  • Legal, procedural and functional checks and
    balances.
  • Sales solutions portfolios for every industry.
  • Educational literature for a range of solutions.
  • Access to more than 500 million dollars of
    products
  • Reciprocal trade agreements .
  • Direct counter-trade barter agreements.
  • International telecommunications infrastructure

www.ormita.com
22
  • Agreements With Major Non-Profit Affiliates
  • Agreements with major non-profit organisations to
    act as affiliates and resellers of the Ormita
    Brand
  • Existing active leads of more than 3,640 other
    non-profit organisations across Australia and the
    USA
  • Affiliates produce literature and promote the
    brand at their own cost in return for a
    commission on sign-ups and ongoing percentage of
    transactions
  • Affiliates build community support for the brand
    in ways that no other barter exchange has
    received before

www.ormita.com
23
  • Sustainable Global Growth Plan
  • Organic Growth Based on Licensees, Joint-Ventures
    Partnerships
  • Shares the risk.
  • There is strength in numbers.
  • Creates brand awareness and recognition while
    reducing marketing costs.
  • Offers financial and legal oversight.
  • Low overheads
  • Common infrastructure and systems reduces the
    cost for all licensees and partners.
  • Shared call centre services and
    telecommunications systems.
  • A people driven business
  • Low advertising and marketing costs.
  • Staff costs reduced through commission-based
    licensees and resellers.
  • All of our members provide us with sustainable,
    predictable revenue

Independent Advisory Board
Ormita International
National Licensees
Regional Licensees
Brokers
Client Directors
www.ormita.com
24
  • Licensee Opportunities Available
  • The non-cash trade industry is one of the few
    remaining markets in the world today with not
    only consistent growth, but which is hedged
    against economic depression and thrives in
    environments with high business growth and
    competition.
  • Become a Barter Exchange owner today
  • If you have ever considered owning a barter
    exchange franchise, or starting your own barter
    exchange business, then you should contact the
    Ormita Commerce Network.
  • When you consider the opportunity that becoming
    an Ormita licensee represents consider this
    simple question
  • Is it cheaper to pay 1000 cash for something
    (either borrowed money or from of your existing
    savings) or to make a purchase using 1000 worth
    of your (previously) unsold time or depreciating
    / unsold stock?
  • Any smart person knows the answer to this
    obvious question it is better to pay for
    something out of new income, not current cash
    reserves.
  • Everyone wants to conserve cash and generate
    more wealth and in a highly competitive market
    every business is on the look-out for something
    that will give them a competitive edge.
  • The non-cash exchange industry represents an
    amazing offering for businesses allowing them
    to trade what they have for what they want.

www.ormita.com
25
  • Licensee Revenue Streams

As an Ormita licensee you will receive revenue
from five different areas of the business

Buying Schedule Fees New Ormita members you recruit are required to have a Buying Schedule completed by a qualified Client Director. 100 of this fee is kept by the Licensee for their distribution to their staff, sub-licensees and other miscellaneous expenses.
Transaction Fees Every time a member transacts (sells) they are billed a 7 cash transaction fee. 90 of these fees are split between the National and Regional Licensees.
Monthly Fees Each month, if a member does not meet their Buying Schedule Commitment, members pay an Association fee of 20 cash. 90 of this fee is split between the National and Regional Licensees.
Licensee Fees National licensees sell sub-licenses to entrepreneurs wishing to operate under the Ormita brand and to resell the Ormita service.
Remarketing Income 100 of all revenue earned from remarketing of assets acquired directly by the national or regional licensee
www.ormita.com
26
  • Contact Us

Ormita Commerce Network Licensee, Joint Venture,
Partnership and Franchise Opportunities
Division Email licensees_at_ormita.com Website
http//www.ormitacorporate.com
www.ormita.com
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