Bartering is making a comeback

An old fashioned way of life is coming back with a new twist.

Barterquest founder Michael Satz said, "This is a new way for people to think about how to get things they want or need."

In an economy that is struggling, an old way of buying things you want is becoming prominent again. Websites like Craigslist have seen a huge increase in people willing to barter. Swap.com has had more than four million exchanges since last year and Barterquest says it has seen a 150 percent increase.

"We believe that it is a multi-billion dollar market. We think its the third leg of the e-commerce after buying and selling and auction. You're going to find people looking more and more to trading," said Satz.

He isn't exaggerating. The International Reciprocal Trade Association values the barter market in North America at $12 billion. Bartering has become popular even in high fashion with many trades taking place during New York City's fashion week.

For one business owner bartering is nothing new. Harvey Paulvin has been bartering his custom t-shirts for 25 years in exchange for a wide range of things.

"I get all the Broadway shows, I love Broadway. Travel, professional services, personal stuff, work around the office if it needs. Barter has made that easy," said Paulvin.

With any purchase on the internet be careful. It is important to trade with reputable dealers to prevent yourself from being ripped off.

Another note to keep in mind about bartering is that it is taxable by the IRS and each transaction needs to be reported by both traders.