Net Trade is dedicated to serving middle market companies.
Our clients have specific needs and their ability to manage unwanted assets is different from a Fortune 500 company. Many companies do not have the internal resources and expertise required to manage unwanted assets. Liquidation efforts can be costly, including the direct selling and warehousing expenses – as well as the cost of logistics. Unwanted assets continue to fall in value; the only question is how quickly. A middle market company may find that over time, the costs associated with unwanted assets continue to rise, and the liquidation value continues to fall.
Our clients work directly with a Net Trade Partner.
Net Trade’s partners have decades of experience and the contacts to quickly and seamlessly manage the asset purchase and liquidation on behalf of our clients. Our competitors are focused on Fortune 500 clients. These big barter companies assign inexperienced junior account managers to mid-market clients. Typically, our competitors’ account managers have a limited media/advertising background – and they have no expertise when it comes to managing the asset disposition. Similar to a large advertising agency, some barter companies cannot afford to assign the most experienced members of the team to a mid-size client.
Corporate Trade success requires that the Trade Credit balance is used by the client in a timely manner, and that all purchases made through the barter company are based on the client’s benchmark price. Trade Credit is used as partial payment by the client. Every dollar of Trade Credit issued to a client could require seven dollars of spending through the trade company. This is the cash-to-Trade-Credit ratio. A Fortune 500 company plans the advertising budgets and tactics up to two years in advance. A large corporation can project Trade Credit usage over multiple years.
Projecting Trade Credit usage can be more difficult for middle market clients.
The total spending is lower and many mid-size clients need more flexibility related to how and when the advertising budget is allocated. We have worked with a number of clients that had Trade Credit balances with our competitors and the client’s advertising plans changed from year 1 to year 2 and the client found they could no longer use Trade Credit at the same velocity. In every case the client shifted dollars from broadcast and print into digital advertising.
Net Trade is the only corporate trade company that leads with digital. Our joint venture partnership with MediaCrossing provides our clients with unrivaled digital media capabilities. Most small and mid-size clients are increasing the budget allocations toward digital. Our competitors are new to the digital space and none of our competitors have built programmatic trading desks, data management platforms, or custom dashboards for their clients. Our clients require flexibility for the Trade Credit allocations. They prioritize digital media spending as an important part of their media plans and recognize that digital media can drive measurable sales for their businesses.
Our clients turn unwanted assets into new audiences and new customers.