Putting a sometimes wasted resource to work is a great way to boo$t ca$h flow.

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Jenny and I have only once come across an innkeeper who was afraid that "too many guests" might prove bad for her business, and it's no surprise that her B&B closed its doors years ago!

For most of us, empty rooms are a worry because we see them as money that cannot be earned once the sun has gone down without at least one head in every bed.

Giving rooms away can help cut the cost of advertising and marketing so it's a smart business policy.

But obviously, "freebies" do nothing to materially boost the bottom line.

B&BInnterchange can help improve cash flow in a number of ways.

The service evolved as a means for innkeepers all over the country to work together to help each other and themselves -- who doesn't like the idea of an affordable vacation and a chance to meet people who might be able to help you enjoy your own business a little more when you get home?

Essentially, B&BInnterchange is a barter service, and as such it is subject to all the rules and regulations that govern income or revenue that is not received in the form of cold, hard cash.

Make no mistake, the IRS will be watching us and everyone who participates in this unique spin on an idea that has probably been around in one form or another since the days of the cavemen.

Most of the room nights listed in the B&BInnterchange Marketplace are there because an innkeeper who accepted an "innsider exchange" that he or she could not personally use did not want it to go to waste.

But there is nothing to prevent an innkeeper from maintaining week-by-week exposure in the Marketplace by listing room nights that have nothing to do with reciprocal exchanges.

The Marketplace is, after all, a high-profile promotional outlet than can function in just the same way as Expedia, Orbitz or other listing services...but without commissions.

Barters can extend outside the B&B industry to suppliers of goods and services who can then post room nights they have received -- with the approval of the "host" inn, of course -- and realize cash value for them.

Innkeepers can also use unsold inventory for staff bonuses, with the same approval proviso applied: a B&BInnterchange participant must sign off on any connected listing before it can be posted in the area of the website listing room-nights for sale.

As a result, a single B&B may have multiple listings at different prices subject to varying terms and conditions, unless that participant chooses to list sales one by one in chronological order, with a sold reservation being automatically replaced by the next in line.

Our aim is to see to it that B&BInnterchange meets everyone's needs effectively, and that requires flexibility and a quick response to input from participants in the program.

Every transaction has a tracking number that clearly identifies all parties involved, making duplicates, repeat bookings and other complications or misunderstandings impossible.

Ben and Barbara, our traveling innkeepers from earlier posts, took a 3-night "IOU" with them which they handed over to their host when they checked in. All the details were recorded in the B&BInnterchange database, along with any applicable conditions (limiting the three nights to sale as a block, or allowing disposal one night at a time, for example).

Revenue from a Marketplace sale or sales related to the Ben and Barbara deal will be credited to the owner of the IOU, immediately via a PayPal or similar account, or by check within a specified period. Property managers or staff, vendors or other room-night beneficiaries must be authorized by established participants in order to receive direct payments from any sales.

Every participant has one-click access to a unique transaction statement that only he or she can see, and updates will be e-mailed according to a schedule that can be quickly customized.

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