The dollar VS The pound, any solutions ?
Quite frankly I do not know the ins and outs of currency conversion and I won’t pretend too. I know that the top contributing factor to the value of the dollars downward spiral is to do with their 8 trillion pounds worth of debt, and then some.
American Dollars control the world of an online publisher from Google Adsense to Tribal Fusion, the majority of revenue streams available and viable for the masses deal in American Dollars. Even during a MSN conversation with a buyer for a site I was selling recently. We were negotiating in dollars despite me and the buyer both living within 30 minutes from each other. Both in the UK !
So to the point and the problem I face as a UK publisher dealing in American Dollars. The problem should quite apparent by now. Conversion rates are measly. Alas there are solutions work-around’s and even opportunities to be had from this American Dollar issue. Lets look further into it.
Selling is low but so is buying
So you can’t make as much money from selling or depositing American Dollars as you once could and in fact as you deserve. But don’t forget it works the same way for buying.
Buy low sell high
Nobody is sure whether or not the American will ever get stronger and may never get as strong as it has been in the past. Those with time and money to layout however could grab a great investment if they buy now and wait for the opportune moment to sell.
This is all dependant on your budget but if you were to buy a web site now that earns $100 per month via google adsense you could do so for around �450. You could hold your payment from Google Adsense until such time as the Dollar becomes stronger and release a nice accumulation of funds into your bank account on top of this you will still have the web site which is now worth a considerable amount more than it was when you bought it. This again is dependant on your budget and your nerve. Will the American Dollar ever become stronger ? Who knows but those willing to take a risk and disrupt their cash flow slightly could make an almighty profit.
This goes for domain names as well. I use namecheap for all my domains and fund my account using Paypal. This equates to me paying between 3 and 4 pounds per year for a .com domain name not including any discounts currently running.
Deal only in Pound Sterling
This is easier said than done. As I mentioned earlier the majority of ad networks worth dealing with are exclusively dollars. Affiliate programs can be different Commission Junction mix both UK and American based affiliates. Still if you ever want to sell your web site as many do then you will need to convert to American Dollars and guess what the Dollar is weak against the Pound so the deal won’t be so great.
Below is a list of UK ad networks and affiliate programs (Please note that these are not recommendations and you should do your own research into the credibility of these networks) :
A pretty poor showing there are plenty of affiliate networks that are UK based but very few CPC or CPM services.
My take on the situation
For what it is worth my solution is to wait and try to wean myself from the American ad networks with newer web sites until such time (if ever) it is worth going back. If I have any dealings with American Dollars through Paypal I will pump the money back into existing sites and maybe try and play the waiting game. Like I said there are investment opportunities to be had from this situation but with as with any investment opportunity there is a certain element of risk.