Share and Trade Skills and Resources

LETS Start a Local Trading Scheme

A 'LETS' (Local Exchange Trading Scheme) is a way of trading skills, goods and services between people in a community without the need for money. It can help people to meet their own needs and become economically active even when money is tight and jobs are few and far between. It encourages buying and selling between local people which reduces the need for travelling - and that is also good news for the environment. At the same time a LETS system can strengthen local community spirit and enable individuals to discover, develop and value their own abilities.

So How Does a LETS Scheme Work?

Quite simply, in a community there will be people who can offer a range of different skills, goods and services to trade.
For example: Mr Smith might be a decorator with some spare time while Mr Brown is an unemployed man who is really good at car repairs but can't afford to redecorate his house. So, Mr Smith decorates Mr. Brown's bathroom, and is paid in credits or tokens, instead of money. Meanwhile, Mr Brown does some car repairs for Caroline, who is a penniless student. She pays him in credits which she has earned from doing childcare for Mrs Jones, who is a brilliant cook. Mrs Jones, in turn, does the catering for Mr Smith's wedding anniversary and he pays her in credits. The credits have gone full circle; everyone has benefited and no-one has had to spend any money!

What makes this series of business interactions special is that no money changes hands. Instead, an agreed system of credits or cheques is established for people to trade fairly between themselves, 'selling' their own services and 'buying' those they need but could not otherwise afford.

When Mr Smith decorates Mr Brown's bathroom he is paid, not in money, but in an agreed number of credits, which he can then 'spend' (in this case by paying Mrs Jones an agreed number of credits for cooking for his anniversary party). The credits, or tokens which may be given a local name, will normally relate to real money values.

They can also take the form of 'cheques', depending on the system which members select.

Over 450 LETS schemes are already operating in the UK, involving over 35,000 people. The size of individual LETS schemes varies enormously with anything from 6 to several hundred members.

A LETS can be quite a simple system to set up and run. Set out below is a simple 'how to do it' and some do's and don'ts. It is worth doing some further reading and contacting sources of help before you get started.

How To Do It

You don't need lots of people to start a LETS scheme; as few as six can begin, but you MUST ensure that you have a range of different skills, goods or services on offer; the greater the variety, the better.
Also, you will need at least a couple of people with the energy and enthusiasm to drive the scheme forward.

Start with a first meeting where you agree on what each of you can offer and what you would want to get done.
Produce a simple joining form which asks people to say what they can offer and what they want to 'buy'. Included with the form should be a list of skills, etc. already available.
It will obviously be easier to take these first steps if you have someone who can use a word processor, but it's not essential. It will also be necessary to set up a simple accounting system - there is plenty of LETS accounting software available free or very cheap ( see 'useful contacts' below). You will definitely need someone who is willing to do the basic administration of the scheme.
Produce a 'cheque book' or tokens - but make sure they are not easy to forge or copy!
Publicise your scheme through local newspapers and community groups, and by notices in the local shop, school and library. You could put up posters or produce leaflets too.
When you are ready, hold a public meeting to get more people involved.
Everyone who joins should be given an agreed number of credits to avoid creating debt early on in the scheme. People need to be aware that they must both buy and sell to make the scheme work.
You don't need to have a constitution, or to register with anyone, although it is important that anyone who joins agrees to have their details stored on computer.
As your scheme grows, local community businesses and organisations may choose to join, as well as individuals.

Do's and Don'ts

Do be aware of security issues. Personal security is essential as people will be visiting each others' houses. Be sure to check people's identity and make sure that no risks are taken. Also make sure that your cheques or tokens cannot be easily forged.
Don't make your system too complicated - forms, credits and systems should all be as simple as possible, for everyone's benefit. Always use plain English!

Do be aware of the possibility of people going into debt - if they 'buy' lots of goods and services but don't sell anything your system will run into problems. Take early action, or agree a maximum 'debt' allowable.

Do keep publicising your scheme to keep people's interest and ensure some new members. Use social events, the media, stalls, word of mouth, etc.

Don't forget to update your directory regularly and to produce regular statements of the trade taking place.

Do make sure that you keep a register of all the trading that takes place and keep a record of the success of your scheme which can be used to help others start up.

And finally - good luck!

Useful Contacts

LETS Solutions is a non-profit making company which supports LETS schemes. For a wide range of help, contact them at: LETS Solutions (Northern England)
Steven Knight
124 Northmoor Road
Manchester
M12 5RS
Tel: 0161 224 0749

New Economics Foundation produces helpful publications. Contact them at:
New Economics Foundation
1st Floor
Vine Court
112-116 Whitechapel Road
London
E1 1JE
Tel: 0171 377 5696

Your local district council might be able to help set up a LETS scheme: contact them and ask.


Home \| What's New \| Contact Us \| Site Map \| A-Z \| FAQs \| Accessibility \| Text Only \| Useful Links \| Help