As a dating business owner, you’ve probably thought a lot about how Brexit will impact your business. If - like the majority of our White Label Dating partners - your dating portfolio includes sites in several international territories, you may have also noticed the impact of fluctuating foreign exchange rates.
While you should take advantage of strong international currencies by investing in markets like Australia now, you should also consider how to minimise the impact that volatility in the foreign currency exchange market could have on your business in the future.
Managing foreign exchange rates
If you generate a lot of revenue from international sites, you could benefit from using foreign currency accounts. A foreign currency account will allow you to match your income with your expenditure in the same currency. This will allow you to make and receive payments in the same currency, reducing the risks of paying poor foreign exchange rates.
When you set up a foreign currency account, you can choose when to buy or sell your currency to achieve the best exchange rate. If you allowed your bank to do this for you, it could be expensive and you could incur high exchange rate charges.
Foreign currency accounts work in the same way as a standard current accounts. You can usually set them up through the bank you currently use. However, bear in mind that eligibility and charges do vary from bank to bank so shop around.
If you operate private label dating sites, some providers (White Label Dating included) give you the option to add different bank accounts for each currency that you generate revenue in.
How it works
If you’re operating a South African site using an English bank account, every time you withdraw money or pay your expenses, the money changes from pounds to rands. This may give you a poor exchange rate.
However, if you run a site in South Africa and open up a South African currency exchange account, you can receive money in rands, pay for your South African traffic in rands, and withdraw your money in rands. This will give you an optimal return on investment.
There are also other ways you can reduce your transaction costs. For example, you’ll receive a better exchange rate if you change large values of money. Plan ahead when buying and selling currency so that you can exchange your currency in one bulk.
In these times of market volatility, any steps you can take to reduce risks are well worth the investment.
About the author
Brad Haverly is a B2B Financial Analyst in White Label Dating's Financial Planning and Analysis team. As well as providing analysis to the total business and the Partnerships team, Brad works closely with White Label Dating partners to help them understand how to manage their marketing budgets to achieve the highest possible return on investment.
Brad is hosting a webinar on 'How to analyse your dating portfolio' at 3pm BST on 22nd September.
This short webinar will teach you how to optimise your marketing spend and determine which sites in your dating portfolio to invest in.
This post was first published on Global Dating Insights