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If you’re like me then I’m sure you’ve been feeling the pain of the falling Dollar over the past few years. Affiliates that participate in programs that pay in American Dollars are now having to work up to 20% harder to make as much money in their home currency as they were just 2 years ago. Even worse, if you’ve been in this game for anywhere up to 5 years, you will have seen close to a 50% drop in the exchange rate.

If the drop continues, more & more affiliates will either start to look for homegrown affiliate programs, or programs paying in more stable currencies (like the CAD, AUD or EUR).

I did a slight bit of analysis to see which Affiliates have been hit hardest by the falling Dollar:

Australians

  • Now: 1USD = 1.07663AUD
  • 1 year ago: 1USD = 1.30112AUD
  • 2 years ago: 1USD = 1.3641AUD
  • 5 years ago: 1USD = 2.8139AUD

Australian Dollar vs American Dollar

Percentage Profit Drop:

  • 2 years: 21.07%
  • 5 years: 61.73%

Canadians

  • Now: 1USD = 0.92967CAD
  • 1 year ago: 1USD = 1.12928CAD
  • 2 years ago: 1USD = 1.18547CAD
  • 5 years ago: 1USD = 1.56520CAD

For some reason the charting tool wouldn’t allow me to inverse the USD/CAD graph, either way it still looks fairly grim.

US Dollar vs Canadian Dollar

Percentage Profit Drop:

  • 2 years: 21.57%
  • 5 years: 40.6%

Euro

  • Now: 1USD = 0.67971EUR
  • 1 year ago: 1USD = 0.77911EUR
  • 2 years ago: 1USD = 0.8514EUR
  • 5 years ago: 1USD = 0.9870EUR

Euro vs US Dollar

Percentage Profit Drop:

  • 2 years: 20.16%
  • 5 years: 31.13%

UK

  • Now: 1USD = 0.47350GBP
  • 1 year ago: 1USD = 0.52450GBP
  • 2 years ago: 1USD = 0.57455GBP
  • 5 years ago: 1USD = 0.62908GBP

British Pound vs American Dollar

Percentage Profit Drop:

  • 2 years: 17.58%
  • 5 years: 24.73%

Canadian Affiliates have been worst hit over the past 2 years with a 21.57% drop in earnings. Which means that for every $100,000 USD they earn, they are earning $21,570 USD less than 2 years ago. Quite a significant drop.

Australian Affiliates have seen the largest long term drop of a huge 61.73% over the past 5 years (Here’s hoping that this doesn’t continue).

India

India is one of the few countries that Affiliate Marketers are profiting from the falling US Dollar, however this in turn means that the cost of outsourcing to India is also increasing.

  • Now: 1USD = 0.02555INR
  • 1 year ago: 1USD = 0.02245INR
  • 2 years ago: 1USD = 0.02186INR
  • 5 years ago: 1USD = 0.02072INR

Percentage Profit Increase:

  • 2 years: 16.88%
  • 5 years: 23.31%

I’d like to know how you are coping with the falling dollar & what should affiliate marketing companies that pay in USD be doing to keep affiliates on board (pay in Gold? ;) )?

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18 Comments on "The US Dollar is Hurting Affiliates, But Which Ones?"

Dominic 09. Nov 2007, 4:39 pm

It’s hurting us Kiwis too :(

Nicu 09. Nov 2007, 5:02 pm

This actually works in my advantage. I do a lot of outsourcing and because I live in Canada I pay less then I would have paid a few months ago.

Guitar 09. Nov 2007, 5:31 pm

US economy is getting worst. I hope this economy conditions not lead to worst domino effect impacts.

kkhan 09. Nov 2007, 5:52 pm

Don’t you have the ratios backwards? Shouldn’t it read “5 years ago: 1USD = 1.56520CAD”, not “5 years ago: 1CAD = 1.56520USD”.

johannes 09. Nov 2007, 6:41 pm

kkhan has it right… as currently 1CAD = ~1.08 USD

One canadian dollar buys one-point-zero-eight us dollars.

Dave Davis 09. Nov 2007, 9:54 pm

We actually dropped a US client recently to take on more and focus more on Canadian clients.

Commerce wise, $USD is the “currency of the web”. We run a software site selling our product for $127. Sales volume has increased over the past few years but NET profit by the time it hits Irish shores is down.

Affiliate wise, don’t get me started…

Thiru 09. Nov 2007, 10:02 pm

Hope the trend may not continue

Peter 10. Nov 2007, 12:59 am

You’ve got it the wrong way ’round mate.

1US = AU1.07 and so on and so forth.

I know what you mean, being a fellow aussie. I’ve got $1000 in clickbank commissions that I don’t want to cash out! But it seems like the aussie dollar keeps rising and rising =\

Oli 10. Nov 2007, 1:50 am

Its killing me here in the UK as well.
Anyone got any further reading on this/ any idea if it will continue or reverse ?

Mike 10. Nov 2007, 2:46 am

It’s hitting me here in Germany also pretty hard. 20% less profit than a year ago.

The only thing we can do and we have to do it as a group effort is to ask our CPA/affiliate companies to pay us in EUR instead of US$.

Furthermore we should ask them (and/or merchants) directly to increase payouts for CPA,PPL,sales etc.

Just one example. If a zip/email offers $1.00 ask to have it increased to at least $1.20. If more ask for this the sooner US merchants will start to increase payouts or suffer sales cause of lost affiliates.

Just my 2 cents.

Keelan Balderson 10. Nov 2007, 9:08 am

I hate to sound like a stuck record but yeah I think you have it wrong. 1 uk pound is about 2 usd. I’ve always been happy with about half, and for me it always has been. What gets me is having to cash in US checks and having a damn processing charge.

Stuart 10. Nov 2007, 12:13 pm

Cheers for spotting the mistake guys, all sorted :)

quietman 11. Nov 2007, 3:30 am

when you realize that their is no such thing as money only Paper which is not worth the paper it is written on, and that both Canada & the USA are and have been bankrupt for long years, and that we are in the hands of the Fradulent Banking Scam who are using “Usuary” world wide and who hold all of the Worlds Gold Bullion the real wealth,which is held In Switzerland by the People who are controling the world and who are on the March towards their final Triumph of 1Global Bank, 1 Global Army,and complete control,with a chipped community who will be completely Robotic and no way or means of supporting themselves and its allready here, all human rights gone and the complete collapse of the World economy which will be used to usher In the new World Order at the request of the Robotic Sheep who do not think for themselves and do not know what is really going on (who knows I might even bring out a how to book on it as I am sure it would be a no 1) also at the moment an english £note or paper is worth $2-20 at my last purchase great if you are buying but not so if you are selling never mind when the Bankers are done making money out of it again it will all change back again “cheers” to everyone and if you have any of these notes spend them as quick as you get them as they are all worthless
never mind we can all console ourselves with a large Cappuchino

Mike 11. Nov 2007, 3:54 am

Well, I have to correct you. All gold of the world is not stored in Switzerland but in the FED bunkers in the US!

All countries on this planet were forced to give up their gold standard long time ago and to back their home currency with the US$. Additionally they had to hand over all or most of their gold reserves to the FED, so publically the FED is only guarding them in their vaults for the rest of the world. There is even a video circulating on Google Video or Youtube where the FED vaults are shown with all the gold and for each country a separate room with the country’s name outside.

Jaredl 11. Nov 2007, 1:26 pm

Actually the effects of currency movements only affects affiliates that pay for advertisements in their home currency and receive payouts back in USD. Take for example my case, i have a choice to set up my adwords campaign using USD or Singapore $. There are 2 main differences:

1. Pay adwords in Sing$ – If the exchange rate move against me after i have setup my adwords campaign, i would lose the difference. Also Adwords minimum CPC for Sing$ is significantly higher compared to US$.

2. Pay adwords in US$ – exchange rate does not affect a particular campaign since inflow and outflow of funds are calculated in US$.

On the other hand, my returns overall has diluted since US$ has depreciated. But bear in mind that my total ad expenditure in US$ is only cheaper now, therefore my overall ROI is the same. In order for me to earn back my original absolute profits, i will have to increase my ad expenditure back to my original costs in terms of Sing$.

Those guys who are really affected are programmers and freelancers who get paid in US$. Their costs is not really measured in their home currency but by their efforts. These are the guys who are really affected..not us affiliate marketers (if you had managed your currency risks in the first place).

quietman 11. Nov 2007, 9:48 pm

hi Mike thank you for your reply to my posting and I wish to assure you that I am not having a pot at anyone here on the subject,I am certainly not interested in what is broadcasted on utube with regards to Fort Knox as being the Bunker as you call it for the Gold Reserve with its nice Plate over the Door as a Propoganda machine for the Elite to use you have no Gold Reserve Period and the red herring of minding the Gold reserves for the rest of the world is having a laugh at our expense, certainly the Gold of the World Is being looked after but not for our benifit it has been stolen by the corrupt Bankers as has most of the Landmass of the World as we know it we are all living in a Fools Paradise and are being used like Puppets and certainly chasing an Illusion,also its worth noting that Canada & the USA are owned lock stock and Barrel by both the House of Windsor or the Queen of England and the Vatican and have so for a couple of hundred years,but the Game is nearly over no longer need anyone be Fooled by this Charade, also its worth noting that Bush is related to her Royal Highness the Queen and when you look at Prince Harry it becomes more evident maybe we should do a DNA test its those Bloodlines you know which go back over centuries
anyway as I say it is not my Intention to offend anyone but it does help to put things into Perspective, also I do Look at the tube as I am a follower of American Mountain Music when ever I can get good content
regards to All

La psicologia 22. Nov 2007, 7:19 am

I run Google Adsense on my italian site. I earn about 1200-1500 dollars per month, which will become less than 1000 euros on the change. You don’t do very much with that amount of money here in Italy… That’s very bad.

Raghu 16. Sep 2008, 10:34 am

What if this treends go on.. USD is getting reduced day by day. Its a bad signe

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