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Aug 26, 2008

New Chart: Weak Dollar Means Time Is Right to Chase Overseas Revenue

SUMMARY: The time to chase overseas revenue is now – with the dollar still weak. Conducting business abroad may seem daunting. But countries with stronger currencies want to “Buy American.” The Internet can put your business – big or small, with or without overseas operations – on an equal footing with larger competitors.
Chart: Percent of Revenues that Originate Overseas

View Chart Online
Click here to see larger, printable version of this chart

With the dollar still weak, opportunities abound for growing revenue overseas. Online-focused companies are in a particularly good position to take advantage, and there’s every reason to diversify beyond North America.

MarketingSherpa has been conducting research into the impact of overseas email accounts on online companies. While that research is being wrapped up, we return to a study conducted with ByteLevel research into globalization efforts.

Here we see the revenue contribution of accounts from outside of North America – comparing all B-to-B companies with those that have overseas operations. Even those with no in-country exposure to foreign markets see real revenues from them – with 25% recording more than 26% of their revenues from abroad.

To some companies, the idea of conducting business in other nations seems daunting. Legal and language issues raise legitimate concerns. But the Internet offers the opportunity for small and medium-sized companies to engage on equal footing with their larger competitors to land foreign accounts and purchases.

Key takeaway:
The time to explore these possibilities is now –while the dollar is still weaker. This allows countries with stronger currencies to “Buy American.” A weaker dollar has also given rise to a “reverse outsourcing” trend that sees an increase in the movement of service-based operations to the U.S. – as well as the flow of tangible products.

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