Does the exchange belong to any larger barter groups? Most reputable exchanges belong to the barter trade groups IRTA or the National Association of Trade Exchanges (NATE). Also ask if the exchange has reciprocal relationships with any other barter organizations.

Develop a list of 10 items or services that you want. Ask the manager of the exchange if those items are available through the exchange.

What are the fee structures? Most exchanges earn their money by charging a membership fee, monthly fees and trading fees, which are sometimes a percentage of each transaction. Make sure you understand the entire fee structure before you sign up.

How large is the exchange? Find out how many businesses are members of the exchange. In general it takes a client base of roughly 300 active businesses for most exchanges to be truly profitable. And profitability means stability.

Will the exchange be able to trade your product or services? Ask it straight out, and see if any other exchange members are offering similar products or services.

How are prime items distributed? Some trade items like airfares, computers and hotel rooms are more in demand than others. Ask how these items are distributed among members, and make sure the system is fair.

What are the rules concerning part-barter/part-cash trades?

How many members are signing up a month? This figure will give you a good indication of the strength of a barter exchange.

How much advertising does the exchange do? Advertising is key in attracting new members and getting your barter services out to the public. An active barter exchange with an active advertising plan can help spread the word about your business and help you create new markets.

Are products and services going at fair market value or are people marking up their services? Check certain items for which you know the appropriate price. You want to make sure that exchange members aren’t inflating their barter prices to get a better deal.

How many businesses are on standby? On standby means that a member has more credits than she can find items to spend those credits on. Look for exchanges that don’t have many members on standby.

Ask about the exchange’s total trade volume.

Get a referral list that includes long-time exchange members. Call and ask them about their best experiences and their worst experiences. When it comes to business, horror stories are a lot more informative than fairy tales. You might also want to check with the Better Business Bureau and the local chamber of commerce.

Go to the barter exchange offices and meet the people in charge.