My Biggest Online Income Killer
There are many things that threaten my online income. However, none of them are as big a threat as this killer. No, I’m not talking about Google bitch slapping me - that’s nothing compared to this. I’m not talking about getting banned from any ad networks either - I don’t allow any ad networks to account for more than 30% of online income.
In the past five years, this killer has cost me hundred of thousands of dollars in lost income and the worst part is, I have no control over it and there is really nothing I can do about it. You see, I get paid in US dollars and unless you’ve been living under a rock, you’ll know that US dollar is turning into a Mexican Peso against other world currencies. If I lived in the US, this wouldn’t matter as much but I live in Canada and have to convert my US dollars into CAD to pay for stuff here. Each time I convert, I get less and less because the US dollar is in the toilet.
My last currency exchange was done at $1.018 CAD for $1.00 US. What the hell is happening to America? How can the most powerful country in the world let their dollar drop like this? I remember the good old days when my CAD dollar was call the Canadian Peso and I would get $1.60 CAD for ever $1.00 US. It was awesome to give the bank a $10,000 US check and have them credit $16,000 CAD into my account. When I do that today, I get $10,180.
This wouldn’t be so bad if the cost of living in Canada wasn’t higher than in the US (add in the fact that I live in the most expensive city in Canada). It would also be nice if businesses that import their stuff from the US start to lower their prices, but they don’t. The price differences on cars are now huge! For example, a new Porsche 911 Turbo cost $123,000 US ($127,000 CAD at today’s exchange). Walk into MCL Motorcars and they want $177,000 CAD for it. I told MCL I could save $50K by buying the car from the US and importing it to Canada. They said Porsche would not honor the warranty. I said $50K pays for a lot of repairs!
At the rate things are going, the Canadian dollar will be worth more than the US by the end of this year (or sooner). I believe reversing the US dollar’s fortune is going to take an administration change, which should have happened three years ago. I couldn’t believe Bush got re-elected.
For those of you living outside the US and getting paid in US funds, how has to decline of the US dollar affected you? It’s costing me a fortune.
- Posted in Make Money Online, Ramblings, The Net
- 162 comments what's your take?
It’s because of the Republicans running up the Defecit. The US owes other countries so much that it’s own currency is deflating…..
Reply to this commentIf that was true then the currency would have deflated a long time ago. It is more about the projected stability of America paying off their debts.
Reply to this commentyeah debts are horrible in the states. Hey John I’m glad my open letter made your day.
Hey I’ve created a new innovation call the Jet Train. It combines the idea of a contest and a Train.
http://www.cashforcomments.com/contest-jet-train/#comment-475
Reply to this commentThat’s also one of my online income killer. You see, I’m in France and all the US$ I receive from my online income are divided by 1,35 and up. Grrrr.
Reply to this commentIf you want to see my daily progression:
BlogaDollar.com
Greetings from France John.
There are many causes to the falling U.S. dollar, and it’s not just Bush’s fault, although the ongoing war doesn’t help. Congress controls the purse strings in the U.S., and it is spending money like there is no tomorrow. That, coupled with the recession the U.S. experienced after 9/11 and more U.S. manufacturers pulling up stakes and leaving the country, is helping to drive down the value of the dollar. The U.S. used to be a manufacturing giant. Now, it is becoming a service-based economy and the jobs that used to pay higher wages are being outsourced to countries like India and China.
Reply to this commentThe increase in the U.S. money supply is the prime culprit in the devaluing of the dollar. This is for two reasons. One, to pay for the war and further planned U.S. influence in the mid-east. Two, we are in an economic/trade game of chicken with China. We are trying to assert U.S. economic dominance over China, the same as we did over Japan in the ’80s. The U.S. elite will sacrifice as many American jobs and lives necessary to retain contol of the world in a strategic sense.
Reply to this commentIt is very depressing. The conversion used to be US47c to the New Zealand dollar - now it’s 81c! It’s all over the news here. Need to look for some non-US ad/affiliate companies.
Reply to this commentYour lucky, I live in the UK:
Today 1 British pound = 2.0495 U.S. dollars
In the UK $1 will get you little more than a Snickers or a Mars bar.
A cheeseburger from McDonald’s / Golden Arches will set you back almost $2
Reply to this commentit is terrible that $16 Hong Kong dollar = $1 pound, we were stopped to go to UK for summer trip.
Reply to this commentyeh we in the uk seem to have been hit hit particularly badly.
Not only has the US dollar had a torrid 5 years but the british pound has performed very well so we get hit twice.
It wasnt all that long ago $1 = £0.70 today you wont even be getting £0.50
Reply to this commentBut if you’re going to the States on holiday and you fancy a bit of shopping…
Reply to this commentAlso being in the UK the fall in the value of the dollar has hit particularly hard. The UKP is also strong at the moment (damn you gordon Brown).
Conversely it would be a great time to target the UK market. Stuff is real expensive here and there are 65 million of us.
Reply to this commentIt is very messed up. I was surprised Bush got re-elected. I could imagine how you feel though John. $6,000 less then what you should be getting is a crazy number, especially when you multiply that by 12.
Speaking of Bush, I saw a funny bumper sticker today. It said “Grow your own dope. Plant a bush.”
Reply to this commentHAHA, I love it. Here are some of my favorite bushisms:
Bush is Listening - “Use Big Words!”
Be Nice to America - or we’ll bring Democracy to your Country!
At Least Nixon had the Decency to Resign.
At Least the War on the Middle Class is going well.
1-20-2009 - The End of An Error.
When bush took office gas was $1.46.
Monica had more president in her than George W. Bush ever will.
Reply to this commentThat was great. I haven’t laughed that hard in a long time. Thanks!
Reply to this commentStop complaining, how’s $4.30/Gal (equiv.) over here for you?
Reply to this commentyeah I can’t stand people who complain about gas prices either. When you consider that people pay far more per gallon for 20oz bottles of water!
Reply to this commentMan I am upset longer time… I am using Visa card from Epassporte and there I have ATM withdraw limit $500 USD. I am withdrawing in Czech Krowns and it is pissing me off now… 3 years ago I could get 14.000 CZK 2 years ago 12.000 2 weeks ago 10.200 1 week ago 10.000 and today 9.800… Just need to mention that ATM gives numbers divided by 200.
I cant imagine having John earnings that is not difference in 20USD in 2 weeks but may be 2000USD.
Problem is that our currency is also getting stronger. And I dont know if it is good or bad. I think it is good if I have Czech sallary but bad if I stay only with USD.
Reply to this commentwhile not in your league John I remember fondly the 1.60/1.00 days .. wish they would get their act together
Reply to this commentI’ve been struggling with this problem too. The one thing I’ve been able to do to counteract this is to use some of my earnings to buy things in USD online. That way I don’t take as big a hit. But the reality of life is that I need to use some of my earnings here in CAD.
Reply to this commentNot a bad idea there John, not a great compensation but you could save a lot of cash by buying as much as possible through the net. (if you don’t already)
Another way to stop the effect is just move to the USA mano.
Reply to this commentDon’t blame Bush, Blame the whole government. Sure Bush has started a sloppy war, but everyone else hasn’t done anything to help. The US economy is doing great right now our deficit went down 200 billion dollars in the last 2.5 years. We need to work together as a government to show the world we can work as a team and move our country forward. The world just doesn’t have a lot of faith in America’s abilities right now.
Reply to this commentI read an interesting book on this topic and I understand the situation a lot better. It hardly matters WHO sits in office if this continues.
“Prophecy” by Robert Kiyosaki entails two generations of looking at this situation. It is only going to get worse. We are in an excellent position to start doing something about it RIGHT NOW if only we do it.
I’ve been at this for about 4 years and it’s going to be just fine - because I am going for my freedom.
John, the things you CAN control could experience a price increase OR you could set a US vs. Can price.
2c worth,
Pam Hoffman
Reply to this commenthttp://seminarlist.blogspot.com
John,
Your pain is my gain, my friend.
As a Forex and Stock Market trader, this little burst of price has been exploding the accounts as of late!
Maybe you just need to figure out a new angle to capitalize on this opportunity my friend! I’m sure you will!
Maybe offer your beer link in Canadian dollars, and then convert it into US funds! Haha.
Reply to this commentYa, I need to look at hedging the US dollar.
Reply to this commentyeah, the canadian dollar has hit a recent 30 year high, its good if you hold a job in canada, i blame enron!
Reply to this commentThere’s lots of blame to go around, but I don’t think Enron’s very high on the list
Reply to this commentI think everyone can actually turn this into their advantage. Buy tons of US dollars instead of local currency. Open up a US Dollar account and keep it for safekeeping until the exchange rates are in your side.
There’s a reason Forex business is doing good these days.
Reply to this commentWhat if the dollar never comes back on our side? The US is trillions of dollars in debt to countries like China and if they call in their loans the US economy will be in big trouble…
Reply to this commentSpooky John. I live in Thailand and have to deal with a falling dollar and incredibly strong baht. It hurts. My Adsense earnings are worth less and less, meaning I have to work harder and harder.
My post about living outside the US can be found here. Seems we’re in a similar boat, although of course I’m facing a bit more of an uphill struggle, having just started and all.
Reply to this commentI feel your pain John, I am also from Vancouver, Canada and make a living from my site. This is one situation where we can not do anything about but pray.
Reply to this commentAre you kidding me?
Have people gone mad? You’re starting to pray to get 16 cad for 10 usd? Is this what you use God for?
Why not ask God for a new car then ?
Reply to this commentNow that’s the funniest comment I’ve read all week
Well put Alex.
Reply to this commentI got paid in US dollars but I live in Western europe, the US dollars is dropping badly against the Euro and it keep dropping….
Reply to this commentYeah I know the feeling. The €/$ exchange has become terrible.
I made a similar post a couple of weeks ago: http://www.thomasdemaesschalck.com/us-sinks-to-new-record-low/
Reply to this commentWell, in Argentina you get 3.15 pesos per dollar
Reply to this commentcut my taxes, let me earn my raises…government…leave me ALONE!
Seriously, why is it that the government can’t “live on what it makes.” Oh, I KNOW I KNOW, its all that pork added to every bill that passes!
As far as the falling dollar, as a US family who is making about the same wages I was making in 2002…we have actually receive dpay cuts….but what ya gonna do…
Reply to this commentWhy you look at only $$$ ?
use some other non-usa Affiliate / Ads .
USA $ Down up2 next 3 years.
USA $ Only Increase When There GDP is Higher Then Others.
Its possible only when USA people moved towards more new Invention and marketing ( New Products ).
“”"”"”"USA is a country it still effect all others income….”"”"”we must cosider the point here
If you love $$$ u must consider the above points.
Reply to this commentI am in the same boat. The Malaysian Ringgit is getting stronger by the day against the USD. It used to be RM3.8 to a dollar during the peg after the Asian economic crisis. Now it’s 3.3 to a dollar. It’s going to go below 3.0 next year.
On the other hand, imported goods become cheaper. I can also spend more on my AdWords campaigns, such as the one you see here
Reply to this commentyou really really need to look at the historical track of the dollar vs the major currencies, yen, cad, british pound, i don’t count the euro it is too new.
this would put the current dollar drop in perspective. i agree that if you are in forex, yeah me, you could be making a tidy profit on this issue, while hedging with the dollar for when the rates will rebound.
if I were you john i would start keeping some of the money in dollars. exchanging it all right now if you don’t have to is a very poor investment.
Reply to this commentRight now, I keep everything is USD and only exchange what I need to run on.
Reply to this commentWhop, that is a 36% drop.
Me too suffering a 20% loss in India, great part of it within the past one year. Just scared if it is going to be a continuous story.
Was already in thoughts of getting hold of any advertiser who pays in Euros or Pound Sterlings per click as there has been an appreciation of these currencies in the meantime, now it is time to aggrevate action to those thoughts.
Reply to this commentCan you imagine how hard it would be to sell PPC in a strong currency like sterling when your customers can go to google and pay in $$$…
Reply to this commentThe currency traders betting against the dollar the last 5 years are making huge fortunes…
I suggest since you derive all or most of your income in the form of US dollars that you hedge against any further declines by shorting the dollar on the currency exchange.
Warren Buffet has been betting against the dollar and reaping huge piles of cash for his intuitiveness, you could do the same.
Reply to this commentYou haven’t really lost anything, because you didn’t have it to begin with. When you go to exchange it, the current exchange rate is used and that’s what you have, and had, even in US dollars. You’re just mad that a few years ago, the exchange rate was better for USD -> CAD.
I personally think that the fact that the Canadian Dollar going up is a good thing, for Canada in general.
Reply to this commentI disagree. A strong Canadian dollar deters foreign investment.
Reply to this commentAnd how do you think a strong dollar works in the same situation?
Reply to this commentOnly to a degree. By and large, so long as there’s no big spike like we had in ‘03 we should be ok. Industry can adjust to a rising dollar, but it needs time to plan and adjust.
Reply to this commentI’m also pissed. Once, 1 US dollar was more then 7 HRK ( Croatian currency ). and today is barley 5.2 HRK. So now you can see the drop when I need to convert it to my currency John.
Freakin shit.
Hrvoje
Reply to this commentYes, the US buck sucks! We used to be the super power now we are hated and laughed at. It is a shame this is what my son is fighting for.
Reply to this commentYour son is still respected by everyone around here.
Reply to this commentThat sentiment is shared in a lot of places. While most will spend a million words speaking all of the wrongs that the US is undertaking, we also realise that these are the actions of the few at the top.
Those on the ground are people to be respected for the fact that they signed up to protect their country from harm. Here’s hoping he returns safe.
Reply to this commentThanks, Kenneth Lay!
Reply to this commentMan, you should look at India now.. Rs 50 = 1$ and now its Rs40.33 = 1$… USA $ dropped to such an extent that Indian IT companies were most affected… Increased the work hrs from 8hrs to 9hrs.. and fewer places saturdays are working too.
I feel the economies are going everywhere else than USA…. Look at Indian share market..
It was slapped in newspapers as per the stats
If a person Invests 1 lakh Indian Rupees (USD 2439 as per today) in any American stock exchange it would e only 1.57 Lakh Indian rupees (USD 3829 ) after 5 years…
But if someone invests 1 lakh Indian (USD 2439) rupees in Indian stock exchanges he would get back 5.06 Lakh Indian rupees (USD 12341)…. Now thats what makes me feel
Sooner all advertising networks shall start paying in your own currency….
Though I feel pinched when I get paid in USD from my forign clients, but somewhere back of my mind proud that my country’s currency is getting stronger…
Reply to this commentchennagi helide guru nindu yava ooru ??? …i hope santosh understands this
Reply to this commentIt is a 2 way effect. On one hand we get affected since dollar rates dropping too badly. Fall of INR 10 per dollar is too much to absorb.
But consider this All tourists visting US will rejoice since they will spend less of their currency and enjoy more.
I hope Dollar improves soon.
Reply to this commentI fully agree, I’m not a forex Expert - but our gov’t is way overbloated. and Bush has pissed me the hell off since he stole the second election.
If this illegal war would ever end, maybe our fiscal situation would improve as it is, we’re just taking on more and more debts, I’ve been a slave to debt, how can the ‘most powerful’ country in the world have so many debts - In essence it mean’s America is as big a slave as it’s people are.
Iraq is hopeless, and if we’re not careful we’ll be in Iran before the next election. I thought last November - yay, Democrats, things might change.. but still we’re in this stupid situation.
I think it’s sad, the way we’re so complacent now adays, 2 hundred years ago, our founding fathers would have been opening a Can of Whoop-ass on a tyrant like G. Dubya.
Reply to this commentFrom an outside perspective I have to agree. Your founding fathers had revolted against exactly this type of leadership. I just hope that your country will be able to recover once this is over.
Reply to this commentAt this point, its literally going to take generations.
Reply to this commentThe end of the war, assuming it ever comes should be a big boost for American currency. The administration change may help too but I really think you need the war to end to back to more reasonable levels.
Your best bet is too leverage some of that money. Open accounts in the US and keep as much money in US as you can. If the buying power of the US dollar increases later, you can than buy CAD with some of your US funds and pull it back in Canada.
You could also open trading account, a money market account or buy bonds or whatever. The small returns you’ll make on the US market will help buy you more CAD with the same amount of $US.
Basically, until you actually convert the money, it’s a paper loss only, the longer you leave it like that the better AND you run a chance of the situation improving over time.
Reply to this commentHere goes another Canadian taking his little slams at the US.
Blame your own government for out of control prices and taxes.
Of course you know have a conservative who is actually cutting the GST up there as well. So blame your previous government.
Stop worrying so much about the US, and make your own country better.
Reply to this commentOur country is doing very well, massive surplusses, government is paying down debt and people are getting rich from the all the natural resources contained within our great nation… but we still worry about our trading partners like the US… especially when EVERYTHING (resources, oil, online advertising earnings) are priced in US dollars and a lot of our customers are from the US (and hence buying Canadian stuff will be more expensive).
Our dollar is going up, and your dollar is going down… it just isn’t the US dollar falling.. our dollar is also gaining strength due to fundamental strength within Canada. So yeah, we do worry about the US dollar…
Can’t wait for a change in US government (I don’t care which party wins), I just want the US to stop spending more money than it is making (taking on debt) and to run in a financially stable way…. the way a conservative should…
Reply to this commentOur country’s fine. If you’re earning Canadian dollars then things are pretty good up here. Our biggest problem is that our economy’s growing a bit too fast out west leading to temporarily inflated housing prices. Of all of the problems a country can have, I consider that to be of pretty low severity.
The issue is that some of us earn money online which is generally done in USD. That’s the problem. It’s not just for Canadians either, Europeans, South Americans, the far east, everyone in the world is losing out due to the dropping greenback.
Reply to this commentNice when your spending in USD though, I recently bought some content for sites, I thought I would end up going to India or something… ended up getting a good rate in the US….
Reply to this commentWe’re facing the same problems - I am from Philippines. Last December 2006, the exchange rate was $1.00 - P56.00
I’ve got good income there from freelancing jobs. However, starting from February, it slowly dropping. Now, I am only receiving P40.00 for $1.00 - you can imagine how big the drop is. It might be consider as GOOD for our country but like me and others such as exporters, Call Centers (there are a lot here) are suffering
Reply to this commentAll faces of evil America
Reply to this commentI’ve suffered through this and I’ve only been making money online for a little over a year! I remember when I started as a freelance writer, I could typically expect to get about 14%… when I checked the exchange today, the mid-market is 4%!
I can’t even begin to fathom the impact the exchange has on people who have been in the game longer — like John — especially if they grew accustomed to the 40-60% exchange years ago.
Reply to this commentI need to work hard for my website.
Reply to this commentMaybe i need to get a full time job now or find the local ads network.
Yeah, I completely agree John. I’m working in Toronto (which can’t be far off of Vancouver for the most expensive city in Canada) and every time our dollar gets closer to parity, my income takes a hit.
That’s not really the worst of it though. The worst is the fact that Canadian retails are not factoring in the shifting exchange rate AT ALL. Nothing is going down in price. Take a look at books. You go into a Chapters, and books are still 3-4 dollars more here when they should be almost on par.
I’d say oh well, at least we are on the rising economy side of the border, but Canadian business relies so heavily on the US, if they collapse, I’m afraid we won’t be far behind…
Reply to this commentPorsche will honour the warranty (legally they have to) but Canadian dealers will tell you otherwise if you casually ask…especially MCL. They are notorious for hating US cars.
Search rennlist for “canada warranty”. Tons of threads on it. It comes up relatively often.
Reply to this commentYes it’s bad. My little basement based company did $415k CDN last year and 90% plus was USD. I put my prices up but you can only do that so many times. Then I took to saving up my US and selling it to my friends that go to Mexico all the time (give them 1% off on the buy price so I pick up another 3%).
Other than that I am considering moving my prices to CDN if it goes over on the other side.
Reply to this commentI don’t think you’ll be the only person taking that route. Moving to CAD will happen once we cross the 1:1 exchange for an extended period.
Reply to this commentit’s not affecting me one bit!
I get amost 70 jamaican dollars for every 1 american dollar
Reply to this commentHi John, it’s my first time here leaving a comment on this entry… Your ebook is informative and useful to a certain extend I should say… But I think there’s something else more happier than those dollars and cents you are making… Cheers!! =)
Reply to this commentDefinitely sucks. I’m confident it will rebound eventually though.
Reply to this commentWhat makes you confident about that? Maybe everyone else will start to lose strength. America may be in the slumps for a long while.
Reply to this commentYou guys seem to have a short memory… or you all are too young
Go here http://fx.sauder.ubc.ca/data.html
Reply to this commentand enter as a start date 1971 (they don’t have older data) and for end date this year. Have a look at the history of the exchange rate. You will even notice peiods when the CAD was stronger than the USD…
I wish I had your problem of complaining about what a new Porsche 911 Turbo cost in the US vs. Canada. That’s a great problem to have!
Reply to this commentOhhh…so now this is a political blog
?
Because I read regularly I’ll put my 2 cents in.
Many people want to blame the current President/Administration for many of their countries problems and I am not going to be so naive as to say that isn’t somewhat true.
However, many of the problems we face as a nation today didn’t start with George W. Bush, and the prosperity that came when Mr. Clinton was in office didn’t start with him and his administration.
President Clinton was riding the coat tails and reaping the rewards of decisions and policy made before he was in office - and he gladly took credit for it just like Mr. Gore took credit for creating the internet
.
We are suffering the consequences of many of our former President’s decisions and sins. If he would have taken some action we might not even be in this war. So say what you will about the war, but left wing tree huggers can’t solve everything with sanctions and peace talks
. Let the flaming proceed!
Reply to this commentI’m a newer reader, and since this is the field that I work in I thought it would be a decent place for my first comment.
The weak dollar is something that this administration is counting on. It’s the weak dollar that’s helped fuel the American economy by making our goods so much cheaper to the rest of the world.
True, there are a lot of other reasons for the dollar being weak (see the giant deficits), but the main reason is that it’s good for our embarrassment of a president’s economic record. A significant percentage of the GDP numbers released this morning are attributable to the weak dollar increasing demand for US goods and services internationally.
Reply to this commentEverytime I go to my bank and deposit my US check, bank teller always ask me to open a US account because of the rates being so low right now.
Reply to this commentJohn, I don’t see any google adsense in your page today. Any specific reasons?
Binoj
Reply to this commentOhps! its there When I refresh the page.
Reply to this commentUSD>AUD is also going down, it’s gone from being nearly $2AUD/USD in 2003 to $1.14AUD/USD. I guess it’s a good time to start buying things from the US
That’s why I keep seperate balances, I use my USD PayPal dollars to buy hosting and stuff instead of converting it to AUD
Reply to this commentSeems a lot of people are in similar situations. Has anyone come across any good ad clients in Asia?
Reply to this commentAmerica is becoming poorer and poorer by the wars with iraq and crap wars….Bush is sick! Because of Bush, I am earning less…I am earning atleast $150 less every month because of him, if we take account of what $$ was 1-2 year back….damn this bush!
Reply to this commentI used to get 2800 Colombian Pesos for each American dollars….
Now I get around 1800, due to the declining power of the dollar and the emerging Colombian economy, things are so much more expensive for me!
Reply to this commentI’ll tell you why our dollar is in the shitter…it’s called a costly and expensive useless war in Iraq. Hey at least you get free healthcare in Canada.
Reply to this commentThat’s a good answer.
Reasons why people get less and less for their US$ is because the dollar goes down on the international markets.
It may not mean their currencies are strong. It’s just that the dollar is going down.
Reply to this commentdepending on your household income, HEALTH CARE IN CANADA IS NOT FREE!
Reply to this commentCome to America if it bothers you so much…
Reply to this comment