UK advertisers - anyone letting Google sit on their money

In view of future dollar/sterling rates

[surfgatinho]

At present at least 50% of my income comes from Google. There is the option to withhold payment until further notice. Now the Dollar isn't my favourite currency in the World but given the outlook for Sterling I'm sorely tempted to let Google sit on my cash for a few months.

As it stands at the moment the cash will just go into my business current account and earn zilch

[realmaverick]

Do you think it's likely that the dollar is going to further increase in value?

I wonder whether Google will calculate the exchange rate of the day we request to be paid or for the exchange rate at the end of each of the month endings?

I wonder if there's a maximum amount we can store.

[zett]

There is the option to withhold payment until further notice.

I would not trust Google to keep my money. I'd rather accept a less-than-perfect exchange rate. Just imagine that they find out that you violate one of their TOS? Then good luck retrieving your money from them.

[surfgatinho]

Do you think it's likely that the dollar is going to further increase in value?

Nope but I can see plenty of downside in the pound!

I guess if I am serious about this then there are other ways to hedge against currency moves (that don't involve trusting Google)

[HuskyPup]

I wonder whether Google will calculate the exchange rate of the day we request to be paid or for the exchange rate at the end of each of the month endings?

R/E is done on the date when you next request payment for all the months accrued.

I wonder if there's a maximum amount we can store.

Not in my experience, I can't see why there would be one either.

[Swanny007]

I think it's a risky move, depending on how much you're making and what that means to your bottom line. Personally I'd rather take a lower exchange rate than risk losing it all if a TOS violation came up. If I was to let Google hold the money, I wouldn't do it for more than one month.

[engine]

Google is not your bank account. You'll earn less than any interest, and, as pointed out, you risk losing it all in the event of something going wrong.

No one knows what the exchange rate will do, therefore, extract it and put it into the a safe haven.

Govt bonds are always a safe bet, and if you're in the UK, get some premium bonds. Even that will be a better bet than leaving it in Google's account.

[IanCP]

Taking a gamble of future currency rate variations is exactly that - gambling.

Pure and simple.

How many sound businesses over the years have gone to the wall speculating on currency rates?

The downside is equal to the upside. Take your money now and head to the casino for an even greater thrill.

[surfgatinho]

Taking a gamble of future currency rate variations is exactly that - gambling

You could argue that NOT gambling on currency variations is gambling!

I'd regard it as a hedge. If sterling rises that's great for me anyway. If it bombs then at least having some money in dollars would be good news.

[m0thman]

I'm confused by this. The exchange rate for UK publishers isn't that bad at the moment, was even better a few weeks ago when it was $1.37 to the pound. Why would you want to sit on it because it looks like it's heading in the wrong direction i.e. I saw $1.46 to the pound today.

[surfgatinho]

I'm confused by this. The exchange rate for UK publishers isn't that bad at the moment, was even better a few weeks ago when it was $1.37 to the pound. Why would you want to sit on it because it looks like it's heading in the wrong direction i.e. I saw $1.46 to the pound today.

As a hedge. I have plenty of money in pounds, but like Jim Rogers I think the UK is toast in the mid-long term.

[nrep]

If you are concerned, why not just open a Dollar account in the UK and get it paid in to that?

I can't see the pound falling much lower than it has already done, as much as I would like it to :)

[himalayaswater]

Since I make around 800-1000 bucks a month, I prefer to collect one fat check :D.

YMMV.