How The Falling US Dollar Can Help Or Hurt Your Internet Business

Article Marketing Is Dead - Drive More Traffic To Your Site

Your view on the falling US dollar (USD) probably depends a great deal on where you live. If you live in the United States you probably haven’t noticed it as much as if you live outside it. To illustrate this point I will tell you about my own personal experiences operating an Internet business outside the US, yet still getting paid in US dollars.

For those that don’t already know (I can’t actually remember if I’ve mentioned it or not), I live in Canada. And, I can tell you that falling US dollar has had a huge impact on my online income. For example, take my February income report where I earned just over $2,000 US. Currently the Canadian dollar is very close to parity (+/- a few cents) so I earned roughly $2,000 CDN.

However, just three or four years ago $1 USD was worth about $1.50 CDN. This means that if the exchange rate today was still the same as it was then, I would have earned $3,000 CDN rather than $2,000 CDN, a pretty big difference.

Still, there is no point complaining and wondering about what ifs. You or I can’t control the international currency markets, so we have to live with it. The fact is the US dollar has been declining for several years now and, in my opinion, will probably continue to fall for several more. So, the problem now, is figuring out how to profit or at least manage the damage from its decline.

I have already showed you a personal example of how getting paid in US dollars hurts most when it is declining relative to your local currency. Thus, one obvious solution is to try and find income that isn’t paid in US dollars. For example, the large affiliate network Commission Junction has many offers that payout in Canadian Dollars, British Pounds or Euros, in addition to those in US dollars.

Moreover, there are other affiliate networks catering to people living in almost every country on earth. Most of these networks pay in the currency of the country which they are targeting. Therefore, you can reduce your exposure to US dollars. See if you can supplement any of your current revenue streams, with ones from these other places. This may also help diversify you away from being too dependent on the US market for your income.

American website and blog owners can also benefit from the declining US dollar by joining these networks. Payments in Pounds sterling or Euros are now worth far more to you than they were in the past. In fact, if you are an American business owner, now is the perfect time to expand your offerings into foreign markets. Not only do you get the currency advantages I have just mentioned, but you also have some protection from the growing recession in your home market.

The one positive thing about the decline of the dollar for those not living in the United States is that your USD costs should also have declined. For example, my web hosting and advertising costs are now much lower than they were a just a few years ago. Thus, if you are looking to make any big purchases or investments that are priced in USD now may be the perfect time.

The big worry that I suspect is holding many people back, is the growing US recession. However, if you are building a long term Internet business, and you need to make purchases anyway, it may make sense to make them now, when you know for sure that you will be getting a good rate. Plus, with the Internet you can usually use your investment made in USD, to target people in areas with more valuable currencies.

In conclusion, the falling US dollar hurts those earning them, but living outside the US the most. However, this does not have to be entirely negative. You can either diversify away from the US market, which is a good thing on its own and/or you can look for cost savings by buying products and services for your business in USD. Better yet, do both to minimize the negative impact.

What do you think? Do you have stories to tell about how the declining US dollar has affected your business? How are you dealing with it? Please share your stories by posting in the comment section below: (Please note, I have been forced to review all comments manually due to spam)