Over past one year dollar is loosing ground quite steadily. While its impact on US economy is matter of great debate, what we are discussing today is it impact on non US internet marketers.
A good bunch of internet marketers are non Us citizens. What they earn in dollars needs to be converted into their own currency. What they get actually in their bank is determined by conversion rate of their currency to dollar.
When dollar was strong it used to convert into 47 Indian National Rupees. Now it is hardly above 40. That means a loss of 700 bucks for every 100 dollar I make.
The same applies to other non US marketers. How to tackle this problem and what to do?
For years dollar had been the standard against which the currencies of other countries were valued. In fact quit a few countries like China and Japan have fixed their currencies to dollar.
Advent of Euro divided the world into two standards- Euro and Dollar. However slow and steady fall of dollar against Euro is cause for concern.
Read what Rahn RW of Cato Institute says on this
The dollar has fallen sharply, about 30 percent, against the euro during this past year. At the moment, one has to pay about $1.24 for each euro, while three years ago one only had to pay about 80 cents for a euro, but at the beginning of 1999 the Euro cost about $1.15. The dollar has also fallen in recent months against the British pound, the Japanese yen, the Canadian dollar and many other currencies, but as much as it fell against the euro.
I may add to that dollar has fallen to Indian Rupees and many other currencies too.
As an internet marketer I am quite disturbed over this trend like you all. Fall in dollar means lesser conversion meaning lesser profits. For the same amount of work we would be making a lesser amount.
What to do? How should you safeguard you profits?
First is to be aware of the trend and keep a tab on market. Because we are not directly related in business to stock market, we might have ignored the problem.
Study your own market. Where are your majority of customers from. If majority of your customers are international, then you might have a surge in sales because dollar has fallen and more people can afford to buy your product.
You might consider switching the prices to Euro. That would involve a lot of work on your site display as well. However, this will make your products expensive to both American and non-American markets. So this move needs a lot of deliberation and monitoring.
But the best thing as of today is wait and watch policy. It is said that dollar has touched the bottom and would start rising after some time. But it is a mere prediction.
For the moment, just keep watching.
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