educational

A Broader View

One of the many things that I concern myself with is the search for innovative ways to increase profits while mitigating expenses. Sometimes this search involves "thinking outside of the box," and looking for ideas in unexpected directions. Such contemplation recently led me to consider the potential impact of world currency exchange rates upon my operation's bottom line.

It was a press release from 2000Charge discussing their EU Direct Debit payment option that began my thought process in this direction. You see, unlike many Americans, most Europeans are reluctant to use a regular credit card for anything other than major (or emergency) purchases - that is, if they even have a credit card. Instead, for a growing number of European consumers, the EU Direct Debit card is the payment option of choice.

Functioning in much the same way as a typical domestic (US) debit card, the EU Direct Debit option allows card holders to pay for purchases in their native form of currency, the Euro, with the payment immediately deducted from the card-holder's checking account. While this is all pretty straightforward, opportunity - or conversely, lower profits - can be realized; depending on the current exchange rate between the Euro and the (US) Dollar.

The reason for this is that while American merchants can bill European customers for products and services in their native Euros through the vehicle of the EU Direct Debit card, the bank will settle the account with the US-based merchant in Dollars, so in the case of a strong Dollar against a weaker Euro, the exchange isn't as favorable, but (as in the current situation), with a weaker Dollar and a stronger Euro, increased profits may be realized by domestic merchants catering to a European market.

This same process can be mirrored across a variety of world currencies and regionally-preferred payment options.

The upshot of all this is that by monitoring currency exchange rates, global merchants are able to tailor their marketing plans in innovative ways - ways in which additional revenues may be realized, or potential shortfalls, averted.

For instance, in the current example of the Dollar vs. the Euro, merchants might want to increase their content offerings to the European market. A prolonged trend towards a stronger Euro would provide additional reason to have content professionally translated into the major languages in use throughout Europe, while even a short-term spike in exchange rates would justify an increase in targeted advertising buys, such as Pay Per Click (PPC) spots on regional search engines.

Conversely, a strengthening Dollar against a weakening Euro would signal a good time to down-size PPC buys on search engines targeted to the European market, while increasing advertising investments on domestically targeted solutions.

This process might seem overly simple (or perhaps not!), but it is an example of the ways in which taking a broader view of the marketing process can result in a stronger and more profitable operation. It is also the kind of competitive advantage that can help separate the successes from the failures in our industry.

Stay on top of what is happening around you, and look beyond the normal scope of your business to find new opportunities. ~ Stephen

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

The SCREEN Test: How to Prepare for Federal Age Verification

For those who are counting, there are now 20 enacted state laws in the United States requiring age verification for viewing online adult content, plus numerous proposed laws in the works. This ongoing barrage has been exhausting for many in the adult industry — and it may be about to escalate in the form of a potential new AV law, this time at the federal level.

Corey D. Silverstein ·
opinion

How to Master Team Dynamics for Business Success

Having the right team in place is everything. Whether getting a startup off the ground and thriving, or safeguarding an established company, the right — or wrong — people can mean the difference between a successful venture and a failed dream.

Juicy Jay ·
opinion

Eight Steps to Fast-Track AI Site Approval for Processing

Artificial intelligence is a hot topic these days. AI technology is speeding up the way we do business across all industries and offers numerous benefits, from automating processes to increasing efficiency and scalability.

Cathy Beardsley ·
opinion

How to Secure High-Risk Transactions With Network Tokenization

Ensuring the security of data as it moves through digital channels is the foundation of safe transactions, and crucial for your success. If your business can’t secure transactions, you’re exposed to myriad processing traumas.

Jonathan Corona ·
profile

WIA Profile: Reba Rocket

As chief operating officer and chief marketing officer of Takedown Piracy, long at the forefront of intellectual property protection in adult entertainment, Rocket is dedicated to safeguarding the livelihoods of content creators and producers while fostering a more ethical and sustainable industry.

Women In Adult ·
opinion

Protecting Content Ownership Rights When Using AI

In today’s digital age, content producers have more tools at their disposal than ever before. Among these tools, artificial intelligence (AI) content generation has emerged as a game changer, enabling creators to produce high-quality content quickly and efficiently.

Corey D. Silverstein ·
opinion

How Payment Orchestration Can Help Your Business

An emerging payment solution is making waves in the merchant world: the payment orchestration platform (POP). It’s quickly gaining traction as a powerful tool for managing online payments — but questions abound.

Cathy Beardsley ·
opinion

Fine-Tuning Refund and Cancellation Policies

For adult websites, managing refunds and cancellations isn’t just about customer service. It’s a crucial factor in maintaining compliance with the regulations of payment processors and payment networks such as Visa and Mastercard.

Jonathan Corona ·
profile

WIA Profile: Laurel Bencomo

Born in Cambridge, England but raised in Spain, Laurel Bencomo initially chose to study business at the University of Barcelona simply because it felt familiar — both of her parents are entrepreneurs. She went on to earn a master’s degree in sales and marketing management at the EADA Business School, while working in events for a group of restaurants in Barcelona.

Women In Adult ·
profile

Gregory Dorcel on Building Upon His Brand's Signature Legacy

“Whether reflected in the storyline or the cast or even the locations, the entertainment we deliver is based on fantasy,” he elaborates. “Our business is not, and never has been, reality. People who are buying our content aren’t expecting reality, or direct contact with stars like you can have with OnlyFans,” he says.

Jeff Dana ·
Show More