Sharing Is Good: How to Save Money, Time and Resources Through Collaborative Consumption (14 page)

with lots of positive reviews and connections. It means they’re active participants, not lurkers, and they take pride in delivering a positive experience. Incomplete profiles, suspicious pictures, too few friends or connections, and negative reviews are a warning to stay away.

76

Sharing is Good

Legal Troubles

Even though sharing often provides access to what you need with-

out traditional currency, it isn’t completely outside the boundaries of the legal system. Did you know that the US Internal Revenue

Service considers bartering and swapping a type of income? If you’re a business owner and regularly barter your services with customers or other businesses, the transactions could be subject to a tax. While the IRS isn’t likely to be interested in the trade of a few bags of baby clothes for a lawnmower, higher-priced deals are on their radar. The last thing you want is notification of an audit because you’ve been bartering music lessons for dental work. If you’re bartering as a business, all trades are treated as cash transactions, therefore it’s up to you to claim any trades on your taxes. “If you own a business and trade $500 worth of goods in an even trade, the $500 worth of goods/

services you supply counts as a sale and the $500 worth of goods/

services you receive counts as an expense,” explains U-Exchange.

com, one of the largest swap and barter communities on the Web.

“If you’re from a country that has a Goods & Services Tax, that amount is collected from the other party and remitted when doing

your taxes.” This means that while there is no tax benefit to bartering, it’s still a great way to conduct trades when a traditional customer can’t be found. Obviously, large barters like the one between PepsiCo and Stolichnaya are much easier for the IRS to spot than a low-value trade between small business owners. Still, it’s always a good idea to remain on the right side of the law. If you live in the United States, the IRS has a Bartering Tax Center page set up on its website. There’s even a handy video interview with an IRS official who explains what to do, what forms to file, and more.

In addition to taxes, there are certain situations where peer-to-

peer sharing can be subject to regulations. Over the past few years, those looking to make money by renting out their spare rooms and

apartments in New York and San Francisco have occasionally found

themselves in violation of short-term rental laws. And it’s no secret What Can Go Wrong

77

that some people have created significant income streams by sharing their goods, space, and time with others. This thrusts collaborative consumption into a gray area that straddles true sharing and commerce. The overwhelming popularity of sharing services proves that governments need to reevaluate the scope of such laws, and, indeed, in many states such evaluations are already underway. Meanwhile,

it’s a good idea to research any and all regulations that could apply to the type of sharing in which you wish to engage. Rest assured that any platform or company you use will have made sure they can’t be held liable if you’re found to be in violation.

How to Avoid a Negative Sharing Experience

Now that you know some of the red flags to look out for, here are some tips on how to avoid disputes and/or deal with them should they arise.

Research Sharing Services Prior to Signing up

Make sure you are familiar with the terms of any available insurance policies or guarantees. Many simple online swapping communities

employ a “use at your own risk” policy, but services meant to facilitate the sharing of larger things, like homes or cars offer legitimate temporary insurance policies or money-back guarantees. As previously mentioned, Airbnb offers $1 million in protection against theft and vandalism, over and above what your homeowner’s insurance may

offer. Similarly, Getaround and RelayRides offer $1 million in coverage for car owners and renters, and many other services offer

guarantees appropriate to the value of what’s being shared. Search help forums or FAQs for information about how disputes are handled. It’s better to know a company’s process for handling problems before you start, so you’re prepared should something go wrong.

Seek Out Services That Offer Complete Member Profiles

Look for services that provide authenticated photos of the person or property, private messaging similar to what’s available for direct 78

Sharing is Good

messaging friends on Twitter or Facebook, referrals/references, background checks, or identity verification services. Rating and review systems are common among the most popular collaborative consumption services, and they are useful tools. These systems allow users to leave reviews detailing their experiences with fellow sharers — simi lar to the way you would review a seller on eBay or a book on Amazon.

And in the same way, members who have many positive reviews, friends, or references are preferable to those with few or negative reviews.

Get Agreements in Writing

When sharing things on a temporary basis rather than giving them

away permanently, it’s always good to have a written agreement that clearly articulates the expectations and responsibilities of all involved.

Some collaborative consumption companies, especially those involved with home or yard sharing, offer template agreements that members can use to clarify the terms of a sharing arrangement. Agreements don’t have to be complicated, just a clear statement of who’s expected to do what, when, and an explicit statement of costs, fees, house rules, or other limitations on the scope of what’s being shared. For example, if sharing a yard, the agreement might stipulate which days the lawn is open for work, or how the harvest will be split between gardeners or perhaps the yard owner and the gardener.

Familiarize Yourself with Local Laws

There may be taxes or permits required for you to legally share your property, so you need to check those out. You should also find out how sharing your property affects your own insurance policies. If additional coverage is needed, you should know beforehand.
The
Sharing Solution,
a NoLo guide written by attorneys Emily Doskow and Janelle Orsi, contains a wealth of information about how to legally engage in peer-to-peer sharing. It includes dozens of helpful worksheets and checklists to help you create and maintain successful sharing arrangements.

What Can Go Wrong

79

Don’t Share Things You Aren’t Comfortable Turning

Over to Someone Else

If you’re petrified of someone scratching the paint on your new sports car, or spilling soda on your heirloom coffee table, it might not be a good idea share your vehicle or home. When possible, take sensitive items with you, secure them in a lock box or safe, or leave them with a trusted family member to hold while you’re away. Sharing should be a comfortable, convenient activity for all of those involved — the idea is to make life easier, not more complicated, remember? No one wants to walk on eggshells, so if there’s going to be a list of rules a mile long, it might be better to just take that thing out of the equa-tion. There are lots of other things to share that won’t be so stressful.

Ask Questions and Trust Your Instincts

The best way to avoid misunderstandings that could lead to a bad

experience is to ask lots of questions at the beginning. Any active sharing community worth its salt has easily accessible terms and

conditions, an FAQ section or help forum, and a way to contact support staff by phone or email. Don’t be afraid to ask questions about how things work, who’s responsible for what, and any potential risks to your safety or property. Look for testimonials from top users and be sure to reach out to your personal social networks to see if any friends have experiences they’d like to share. You ask your friends for referrals for hair salons and restaurants; you should do the same when choosing collaborative consumption services or P2P sharing

programs.

Chapter 6

What to Share

Now that you know a little bit more about what collab-

orative consumption is and how the sharing lifestyle works,

you might be excited to give it a try in real life. You’re probably wondering “where do I start?” and “what should I share first?”

Every single one of us is different. We have different needs, different assets, and different limitations on our time, money, and energy.

That’s why there are thousands of different ways to start sharing.

It’s usually best to start small, especially if you plan on sharing via a newly discovered service or online community. Some people like to join a sharing group, network, or online collaborative consumption service and spend a few days or weeks just poking around and getting a feel for how the community works. If you’re looking at a peer-to-peer car-sharing service, you might spend some time browsing the

profiles of those offering cars in and around your neighborhood. If you’re looking for a way to share the excess harvest from your summer vegetable garden, you might take a few minutes to understand

differences between the way sites like Yerdle, BackyardBarter, and Craigslist can connect you with those who would appreciate it most.

81

82

Sharing is Good

Once you’ve scoped out a few convenient sharing outlets and

are ready to give it a try, look around your house, garage, or office.

Everything you see can be shared! Think about all of those errands, hobbies, and side projects clamoring for your attention. Collaborative consumption can help you crowdsource the energy and skills you

need. Think about your spare room or the driveway that sits empty all day while you’re at work. Sharing can allow you to utilize and even profit off of those empty spaces while helping someone else

save money and unnecessary carbon emissions. Think about your

messy home office, the one with a million distractions just waiting to pull the plug on your productivity. By joining a cooperative of other freelancers or remote workers, you can finally emancipate yourself from that claustrophobic home office and make connections that

can boost your career.

Once you’ve decided what you’d like to share, or what you’d like

others to share with you, it’s time to figure out where to do the sharing. You already know that sharing can happen between people

who know each other as well as those who are complete strangers.

Although in-person peer-to-peer sharing is often the most instant-ly gratifying, online sharing services are often more convenient.

With just a few clicks of the mouse it’s possible to swap or barter with someone who lives across town — or on the other side of the

world.

In the pages that follow, you’ll find a cross section of the things, spaces, and services that can be exchanged, rented, or simply given away through collaborative consumption. This list is by no means

exhaustive. For starters, it focuses mainly on the sharing economy now emerging in the United States and Canada, but there are collaborative consumption services operating in dozens of countries.

It’s meant to give you an idea of just how many services already

exist to help you engage in the sharing economy. Don’t be afraid to poke and ask around in your own community to see what you can

find!

What to Share

83

Goods

Sharing goods is a easy introduction to collaborative consumption because we’re already familiar with a similar concept: donating.

Many people are comfortable with the idea of donating things

they no longer want or need to thrift stores or organizations like Goodwill or the Salvation Army. It feels good to know that your

gently used items will be redistributed in the community. Like recycling your aluminum cans, donating prevents usable items from

landing in the landfill; at the same time, it’s creating a low-cost alternative to new items for someone else. Donating is a version of collaborative consumption, but it’s somewhat disconnected. When

donating to a church or local thrift store, most of us just drop the stuff off. We’re so happy to have it out of our way that we rarely stop to think about what happens after that.

When we make a conscious effort to share goods in person or

through a meaningful online exchange, we remain more involved

in the process. People who choose to share goods in this manner

often create a personal connection with those who rent, borrow, or assume ownership of their things. The same thing applies if you’re the person taking advantage of an item that’s offered up. This slight difference refocuses our thinking about people — the friends and

neighbors with whom it makes so much sense to share what we

have. Sharing our goods, either as temporary rentals or permanent gifts, makes us more aware of the life cycle of our material possessions; it also encourages us to be more responsible stewards of our possessions while they belong to us.