Sterling / Dollar Rate

**getvisible** · 19-12-03

All those of you about to recieve CJ. Adsense etc payments take a look at the exchange rate:

**angelabx** · 19-12-03

I know - it's dire!

Some of the papers say it can only get worse!

I'd toyed with the idea of receiving payments in dollars and holding the money until it reversed. I was thinking the same at 1.65 and look at it now! Glad I didn't.

For all of us that lost money in the stock market fall then a 'bird in the hand' is a very valid saying!

Who knows which way it will go next?

**Matthew Wood** · 19-12-03

Shocking it is!

It really is a real problem, even more so for CJ, as affiliates basically are taking a sizable cut in their commission levels.

5% suddenly becomes a little bit less, and comparable programs on other networks may become more alluring.

**simon147** · 19-12-03

for CPA arrangements, why cannot CJ simply increase these rates accordingly?

**ianm** · 19-12-03

For CJ, as they have such a large number of UK merchants now, there is surely an argument for the UK office to be given completed control over the UK merchants and to collect the money from them and then pay the affiliates from the UK in £ - with no need to consider £/$ exchange rates.

I'm sure that they could update their system to cope with multi-currency payments.

**Mogga** · 19-12-03

Wouldn't that make them vat-thingy though.

**ianm** · 19-12-03

True, but would that really cause a problem? - they would charge the merchants VAT in the same way all the other networks do.

**CompareStore** · 19-12-03

It may not be as bad as it seems (although I may have got this wrong!) -

I'm assuming that when a customer buys something from say Argos the pound value gets converted at that days rate? In which case you are only losing out on the difference between the rate at time of sale and the rate when you pay your commission cheque in. Correct?
The historical rate (i.e. more than a few months back) therefore has no affect.

AdSense/AdWords is a different kettle of fish though as advertisers pay in sterling so 10p per click is 10p per click regardless of the rate. However the cheque is in dollars so 10p is worth less now than it was when the rate was lower.

Have I got this right?

**Flightmapping** · 30-12-03

I'm assuming that when a customer buys something from say Argos the pound value gets converted at that days rate?

Yes, that is fine if you are paid a commission. Most of the programmes I work with on CJ are CPA only - eg Expedia UK is set as $8, regardless. would it be that difficult to quote it as £5, and to pay out the equivalent?

You can guarantee that if the exchange rate went the other way, the $ amount would go down.