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  1. #1
    Newbie
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    June 18th, 2007
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    overseas affiliate - how to reduce overheads
    I did a brief search on overseas affiliates but couldn't find too much apart from the usual "how will I get paid?" thread.

    I'm living in Australia and I'm a bit shocked about how much money literally goes down the drain, just because I'm promoting US based offers using US based affiliate networks:
    - currency exchange from AU$ to US$ to pay for my ppc advertising
    - foreign transaction credit card fees every time google charges my card (about 10 times a month, don't seem to be able to influence the frequency)
    - fees for depositing international cheques into my Australian bank account OR fees for an international wire transfer from the affiliate network to my bank account
    - currency exchange from US$ to AU$ to convert my comissions

    In short, quite a substantial amount of profits is beeing sucked up by the fees the banks charge, and I would be very interested to hear what people are doing to minimze these fees?

    Obviously getting a credit card that has a rewards program might be a good idea, but only if the foreign transaction fees are low.

  2. #2
    ABW Ambassador Rehan's Avatar
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    You can get a USD bank account in Australia, can't you? How about a USD credit card?

    Even if you can't get the USD credit card, here's how you could structure things to limit the currency exchanges:
    1) Switch your Google account to AUD (*). Unlike the banks, Google doesn't make any money on the currency exchange... All PPC bids are converted to a micro-currency before the comparison to determine ad rank. (Read more about that here.) This will resolve issues #1 and #2 on your list.
    2) Open a USD bank account, and deposit your affiliate cheques into there. Hopefully that'll resolve issue #3.

    So the only thing you'll have to deal with is the currency exchange from USD to AUD, to pay off your credit card (and to pay your own living expenses, of course). If you can somehow get a USD credit card, that would mostly get rid of even that problem. At the very least, look for other options for currency exchange besides your bank...like http://www.xe.com/fx/ for example.

    * - You can't actually "switch" the currency setting in your account. You'd have to open a brand new AdWords account...which means losing your account history. So you'd have to weigh the importance of that history vs. your currency exchange rates.

  3. #3
    Full Member
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    If you want to spend the money in Australia, it needs to be converted at some stage... and the way the US dollar is dropping it would be best to convert it straight away. My income has dropped 20% in recent months because of the rising Aussie/falling $US

    The best banks for depositing US checks are:

    1) Westpac. If you fill out a "schedule" (simple list of the checks & their details), you can deposit multiple US checks for a single $15 fee. There will be a dollar value limit they will accept, and that depends on that branch's manager, but I have used several branches and they all let me deposit 5-8 checks worth $500-$600 for the single fee. Also, the money is instantly in your bank account!

    2) St George. 3 checks for $16. Takes 28 days before you can access the funds, but there is no limit to the value - $20,000 checks are fine

    3) Bendigo Bank. Haven't done it for a while, used to be $10 per check, 28 day wait.

    All the rest can be much, much more expensive.

    Lots of affiliate networks are able to pay in $AU, so it is worth asking them. CJ definitely do.

    I use Westpac Amex Altitude Gold for my foreign expenses - it gives the best points per dollar, as long as you are spending over $7500 per year (because the annual fee is $150). Roughly works out as a 2% refund on your expenses, spendable at Myer, Harvey Norman etc
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  4. #4
    Animal Lover
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    Yes I'm with Westpac too. NAB initially but then they started to charge me per cheque - so I switched and Westpac will bundle up a few and charge just the one off admin fee if the cheques are all in the same currency. Westpac suggested that perhaps I should think about starting a USD account but I found it too cumbersome. You could try starting an overseas account with a bank that has US presence eg HSBC, Citibank and see if you can get merchants to direct deposit into your overseas account and then do an electronics transfer to your local branch. Complicated so I haven't actually gone down that path. LS and Google will direct deposit into your Oz account and CJ will pay in AUD. I'm not liking that exchange rate at the moment...rumours are that it will hit 90c...

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  5. #5
    Full Member ske9963's Avatar
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    Quote Originally Posted by ghoti
    2) Open a USD bank account, and deposit your affiliate cheques into there. Hopefully that'll resolve issue #3.
    Need a Social security # or your agent needs to have one so that you are able to set up a company in US, then use that company to setup a bank acct
    Ma, where the beer? :escape:

  6. #6
    Newbie
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    June 18th, 2007
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    Great advice so far, thank you guys.
    I'm paying 10 dollars for cheques with Suncorp, but it takes 3 weeks for the cheque to clear. While the money is in the account instantly I cannot use it to make withdrawals or Bpay transactions - which can get quite confusing.

  7. #7
    I like traffic lights
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    >Open a USD bank account, and deposit your affiliate cheques into there. Hopefully that'll resolve issue #3.

    But possibly open you up to requiring to pay tax in the USA. Not something you really want to do.

  8. #8
    ABW Ambassador Rehan's Avatar
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    Quote Originally Posted by Drewbert
    >Open a USD bank account, and deposit your affiliate cheques into there. Hopefully that'll resolve issue #3.

    But possibly open you up to requiring to pay tax in the USA. Not something you really want to do.
    I was referring to a US Dollar account in a local bank (in Australia, in his case). There should be no taxation issues with that...

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