Is it time to demand to be payed in euros now

because of the weak dollar

[zeus]

With time I see that the dollar will never again be as much worth as the euro.

Many are pay from sponsors,advertiser or sometime just a job done in the usa, in dollars, but the dollar keeps being weak and as it looks will stay there for a LONG time, so maybe its time for advertisers to go to pay in euros, like some pay for CPM in dollars.

[edited by: trillianjedi at 10:38 am (utc) on April 10, 2006]

[Lovejoy]

If your market is the USA you might as well forget that idea. To many Americans the greenback is looked at as a birthright, the world currency and worth more than any other ;~) Ask anyone who has stood in line waiting to covert their currency, behind an American Tourist travelling outside their country for the first time ;~)

I recall exchanging Canadian dollars for pounds at the Tower of London while a Texan turning puce bellowed at the teller " wadda yah mean, this is all I get in English money for my 500 American?" He was convinced he was getting hosed @ the posted exchange rate, while the rest of us rolled our eyes.

At some point something has to break, but in the short term all you can do is keep your eye on the exchange rates and raise your prices if need be. I've taken quite a hit in the last three years now the Canadian dollar has risen from about 62 cents US to 87-88 cents US, but I know my American Customers are unlikely to buy my services if I insist on payments in Canadian dollars.

The best case scenario I guess would be to have a US version of your site and raise prices in US dollars in lock step with your currencies appreciation.

[2by4]

look for further drops in the dollar as certain key countries pull out of the petrodollar market and switch to the petroeuro. Currently the USA has severely limited its ability to cope with further defections from the petrodollar driven market.

[Moosetick]

Do you think you will still get the same amount of units? If you are now getting $100/day, do you think they will give you 100 euros/day for the same clicks? I think not. Your amounts will be converted at some point. If not by you, then by G.

The only problem I see is if the dollar were to become extremely volitile in each pay period. If you were expecting an 80% conversion rate and within a month it fell to 70% that would be bad. Realistically though, currency doesn't fluctuate that much and it can also go in the reverse direction.

Demand all you want. You need G more than they need you!

[zeus]

the problem is, I do in the US market and payed in US dollars, but the currency is just so low now and as I see it it will continue, im also thinking about other publishers must also look for other sponsors outside of the US, because of dollar and that could bring the advertisers in a little trouble because of lower payouts (because of dollar/euro rate).

[2by4]

zeus, your problem is by no means unique to webmasters, it's the same for global financial markets, bonds especially. A lot of people out there are starting to reevaluate their positions re the US dollar. I would build in the decay into your pricing, and I would anticipate further decays, not severe, but ongoing.

Structurally nothing is being done to alter this course, so it would be fairly irrational to expect it to magically change all of a sudden.

As people pointed out, trying to bill US clients in non-us currencies just isn't practical for the time being, so you have to adapt your billing to take into account the depreciation in value.

This isn't just a problem externally by the way, it's the same in the country, I've had to significantly increase my billing fees just to keep up with the real buying power of the dollar. It will be interesting to see how this develops, the main things to look for are large holders of US debt beginning to diversify out of dollar holdings, and significant oil exporters switching to euros. The first event is slowly happening, and the second is very close.

[edited by: 2by4 at 6:33 pm (utc) on April 10, 2006]

[Lovejoy]

As Bill Clinton used to say, "I Feel Your Pain" ;~)
but very, very little of my income comes from adsense.
I'm just going to try and grow my market in other countries to make up the difference, maybe even do mirror pages, but set up for local currencies.