Performancing Metrics

Weak American Dollar: Implications in Blogging

So a friend of mine from Sweden made an interesting but valid point about the American dollar being weak: it is making him less money for the same amount of work. Thord Daniel Hedengren wrote on 901am about the problem in a post entitled “Get that dollar under control, please

I lost equivalent of a grand (perhaps more when you read this, or less, depending on how the dollar moves compared to the Swedish crown) recently, just due to the dollar being down. That sucks.

The blogosphere is paying in dollars, but being a non-American blogger suddenly pays less. Will that change?

He is having the same issue that I am. I am Canadian, and our dollar is doing better and better against the U.S. dollar, and before I got my current job, I would have been happy to see our economy doing so well, but with my pay being in American dollars, the conversion to my local currency is creating a situation where I am getting less pay for the same amount of work.

There are some things that could be done, but they all mean charging more in the mind of an American employer for providing the same service. I could switch it so that I am paid in my currency, but as the U.S. dollar does worse, this will mean that their out of pocket expense to me would increase, and what if suddenly my local currency plummeted? Well, they’d be laughing to the bank.

While I haven’t lost as much in the conversion as Thord, I still notice the effect that the shifting exchange rates have. One month I can afford more groceries, and the next less.

It brings up some problems, that with my limited understanding of the global economy, I don’t have a good answer for. I just know that sometimes it pays better to be paid in the currency of another country, and other times in your own.

I also have to note that the U.S. dollar is still worth more than a Canadian one, so I am still bringing in more than if I set my rate in Canadian dollars at the same level as I am getting in American ones.

Categories: Blogging Sense

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  1. Rhys says: 6/11/2007

    I’m from the UK, and it’s roughly $2 to £1, due to our incredibly strong economy. It hurts me so much, especially when paypal take their cut.

    Of course, there are plus sides, I travel a fair bit and paying 20p for a bottle of beer in some european countries is fabulous :), and this year it’s cheaper for me to fly to New York, do my Christmas shopping on high value goods, and fly back than it is for us to buy the same goods in the UK.


  2. Mike says: 6/11/2007

    I’m UK based as well but don’t really have a major problem with the fact that the vast majority of online business is done in USD. For starters, most of the money I make online I put back into the business in terms of purchasing domain names or hosting through US companies for the simple reason being that they’re cheaper than their UK counterparts. $15 for a .com purchased from a UK company or $6 through a US company? No argument. Equally why pay £15 for hosting when you can buy it for $15?


  3. Duncan says: 6/12/2007

    I hear you on this, the Australian dollar has been floating between 82-86c US where as 18 months ago it was 65c…simply it hurts, all of my earnings are in USD and every 1c move costs me a lot of money, and if it hits parity $1=$1 well…I might need more work then :-)


  4. Luke says: 6/12/2007

    Many people would prefer American dollar being stronger. But for this, you need to make Chinese to allow their own currency to float.

    American dollar is not in a good condition and the rest of the world should enjoy cheap services provided by on-line American companies.


  5. Rob Lewis says: 6/14/2007

    This show that bloggers are susceptible to the same problem as other global businesses – I’m not sure there is an easy way round it. I guess it’s another case for having many different monetization strategies and not putting your eggs in one basket.


  6. inspirationbit says: 6/23/2007

    As a Canadian, I’m proud to see that Canadian Dollar is getting stronger. Although I do realize that it’s mainly because US dollar is getting weaker. I never thought about bloggers losing money because of that (I guess, because I didn’t monetize my blog yet), but I know it’s hurting many industries.

    I’m personally affected with the higher interest rates on mortgages. Looks like I’ll never be able to afford my dream house if it continues this way.


  7. Tom Stefano says: 7/12/2007

    We sell our software in American dollars and mainly to American companies, but with a weaker dollar we have been selling more to UK and the EU. Most of our staff are in Canada, and that ofcourse costs us more due to the weak US dollar and the strong Canadian one.

    The increased business from Europe over weighs the increased overheads due to the conversion rates.


  8. Ken says: 8/27/2007

    I am working in Iraq now and gettting 7800 dollars tax free a month, and while this is great and all my wife and child live in sweden. I am losing over a thousand dollars a month because of the Dollar/Kronor. We must understand that this like any other entity that is delicate, it becomes a balancing act. The dollar will bounce back. If you think of how much the dollar fluctuates in a given year this is really nothing. Just be patient and hold on.



  9. m j says: 4/22/2008

    so what to think ? domesticly once the Democrats sort out who they will Can you say China’s little girl because thats the way the USA is heading. Watch as China builds their Navy at record growth which is nessasarry to protect their trade routes. Want a strong dallor stop buying from China till they revalue their currancy. opps said enough


  10. Adriana says: 2/24/2012

    thanks for share!