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Did The Recession Really "Break Up" Internet Marketing

by Dave Rodman Banned
11 replies
Pre-recession, power was consolidated in the hands of few. Conferences seemed really popular, money was flowing freely, and the price points just got higher and higher.

But in the last year or so, it seemed like everything started to come apart.

1) Economy tanked. Gurus say they don't participate in recessions, but sometimes their customers do I guess?

2) Tougher Laws---FTC laws, merchant companies, etc made it harder for larger IM products with huge refund rates. (30-40%).

3) Robots--Most of you know what I mean on that.

4) Real World Knowledge Started To Evaporate--When a guru bursts from the underground, they have cutting edge knowledge. But if they just get on the circuit, they lose that in exchange for being a promoter. After a certain amount of time, they haven't kept up with the latest info and their experience gets stale.

5) Customer's get annoyed with spending so much cash.

In the end, this is a good thing for IM. I feel like back in 2006, a lot of really good products were going unnoticed because all people's cash was devoted to the newest product launches. Product launches were somewhat new, people were naive, they had cash, and they fell hook/line/sinker.

Now, the people that provide value are getting noticed as people come back down to reality. People on a budget means they will be less likely to fall for the old "It's a high price point because of the insane VALUE" we're providing. When in reality, it was all just price fixing.

I never bought any of the major launch products, I figured I'd let the smoke clear. But it seems like in 2006, the forums were flooded with questions about them. Now, you barely hear a peep when it comes to big launches.

It stuck out to me not long ago when I saw a "Favorite Internet Marketers" thread. Back in 2006-2008, it was a list of major gurus. More recent lists are filled with people that are definitely more underground.

So what do you think? Is it better for internet marketing not to have a consolidation of power? Or are people better off learning from "mainstream" gurus?
#break up #internet #marketing #recession
  • Profile picture of the author Chris_Willow
    IMHO the power is still largely consolidated between the well known gurus cross promoting each others launches. Mostly targeted at newcomers, promoting advanced info and milking the same list of people over and over again.

    Don't get me wrong- my favorite guru is Kern, but after going through all his stuff, I've been going back to the old guys with solid info on selling stuff.

    That's just how I see it.

    Chris
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    • Profile picture of the author Dave Rodman
      Banned
      Originally Posted by Chris_Willow View Post

      IMHO the power is still largely consolidated between the well known gurus cross promoting each others launches. Mostly targeted at newcomers, promoting advanced info and milking the same list of people over and over again.

      Don't get me wrong- my favorite guru is Kern, but after going through all his stuff, I've been going back to the old guys with solid info on selling stuff.

      That's just how I see it.

      Chris
      This got me thinking. And even worse than the Syndicate type stuff are the companies that try to keep you isolated. IMC used to do this quite well. They NEVER cross-promoted anything because they didn't want you to get distracted.
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  • Profile picture of the author tpw
    A consolidation of power is better for those in the power seats.

    I don't think it is better for the community however.

    I don't follow guru launches, but the last one I remember was Kujabi, and I thought the Syndicate was on an every-other-month launch cycle?
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  • Profile picture of the author Dave Rodman
    Banned
    I feel like in the past, the syndicate used to do impromptu promotions. John Reel, for example, launched GoTryThis in 2006 and that almost seemed to be a last minute thing where a bunch of people jumped on at the last minute.

    Later though, everything was way more planned and coordinated. And THAT turned out to be, likely, a really bad thing for the IM community. And I say that for the people that are newbies and really gullible. You can't really go broke buying a bunch of WSO's, but you can go broke buying Syndicate product launches. And those are the ones that, up until recently, got most of the newbies attention.

    But yeah, I think Eban Pagan's product was the last big launch if I remember right.
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  • Profile picture of the author Alex Sol
    I think your question is really about the "Make Money" industry and not Internet Marketing.

    During the Christmas holidays of 2010 (October 26-December 26), consumers spent over $30.8 billion ONLINE in the USA alone, a 13% increase from 2009. People buy online more than ever. Now it's just a question of getting in front of them and giving them what they want.

    So the Internet Marketing is not "broken up" and can be very profitable if done right, however selling "Make Money" products is another question...
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    • Profile picture of the author Dave Rodman
      Banned
      Originally Posted by Alex Sol View Post

      I think your question is really about the "Make Money" industry and not Internet Marketing.

      During the Christmas holidays of 2010 (October 26-December 26), consumers spent over $30.8 billion ONLINE in the USA alone, a 13% increase from 2009. People buy online more than ever. Now it's just a question of getting in front of them and giving them what they want.

      So the Internet Marketing is not "broken up" and can be very profitable if done right, however selling "Make Money" products is another question...
      Yeah, I thought it was kind of obvious from the post. But i'm referring to the "Make Money Online" crowd. I fully realize that people are going to buy stuff online at a record pace.

      When I'm talking about "Broken Up", it means that people are now getting their information from a wider variety of internet marketers, as opposed to the products that were launched by the syndicate. And that is, in large part, to those reasons I laid out above.
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  • Profile picture of the author Andyhenry
    I'm not sure I agree about the premise.

    I think that it's easy to see these big promotions and think that the big players are dominating the market - but in reality the market is MUCH bigger than any of them have actually reached.

    Whenever I meet up with IMers offline - there are always 'Gurus' being mentioned who I've never heard of. Lots of people who have never heard of the WF and tons of people who wouldn't know who FK was if he bought them dinner.

    The IM niche is HUGE and there are tens of thousands of people selling well in it. Most of them are not in this forum. This is probably the biggest IM forum around and yet it still only taps into a fraction of the market. The same for the big names - many of them are struggling right now and changing their focus from noobie IMers to B2B sales and consulting/coaching for higher ticket prices.

    A few years ago most of them considered a high ticket IM strategy to be product based, now it tends to be service based.

    You see it here too - there are tons of fairly new IMers who still don't really know what they're doing offering 'coaching' because they've been told it's the new high ticket product funnel component.

    I haven't noticed any drop in my sales at all in recent years a but I do buy a lot less because I know only buy what I know I need and will use rather than whatever was interesting, but there are new people coming into IM everyday with credit card in hand looking for a guru to sell them their answers, so I don't imagine the supply has gone away - but maybe it is being serviced by smaller 'experts' now.

    At the end of the day - I don't think it really matters anyway because whatever the case - you're responsible for your own results and carving out your own piece of niche by offering unique value is still the same as ever.

    Andy
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    nothing to see here.

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  • Profile picture of the author Dave Rodman
    Banned
    I do agree that people are responsible for their own results. You can protect them from getting ripped off by GURU X, but they'll turn around and invest $50K after watching a R/E seminar. At the end of the day, you can't protect people from their own stupidity (and greed).

    I don't know though. At their peak in 2006-2007, I think the syndicate was controlling a VERY large % of the sales in the MMO niche. Sure, there were lots of people that never heard of them or bought anything from them. There were also lots of people making money elsewhere. But what would seem to be a VERY fragmented market, they had quite a bit of sales go through their group.
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  • Profile picture of the author nerrutis
    Originally Posted by Dave Rodman View Post

    Pre-recession, power was consolidated in the hands of few. Conferences seemed really popular, money was flowing freely, and the price points just got higher and higher.

    But in the last year or so, it seemed like everything started to come apart.

    1) Economy tanked. Gurus say they don't participate in recessions, but sometimes their customers do I guess?

    2) Tougher Laws---FTC laws, merchant companies, etc made it harder for larger IM products with huge refund rates. (30-40%).

    3) Robots--Most of you know what I mean on that.

    4) Real World Knowledge Started To Evaporate--When a guru bursts from the underground, they have cutting edge knowledge. But if they just get on the circuit, they lose that in exchange for being a promoter. After a certain amount of time, they haven't kept up with the latest info and their experience gets stale.

    5) Customer's get annoyed with spending so much cash.

    In the end, this is a good thing for IM. I feel like back in 2006, a lot of really good products were going unnoticed because all people's cash was devoted to the newest product launches. Product launches were somewhat new, people were naive, they had cash, and they fell hook/line/sinker.

    Now, the people that provide value are getting noticed as people come back down to reality. People on a budget means they will be less likely to fall for the old "It's a high price point because of the insane VALUE" we're providing. When in reality, it was all just price fixing.

    I never bought any of the major launch products, I figured I'd let the smoke clear. But it seems like in 2006, the forums were flooded with questions about them. Now, you barely hear a peep when it comes to big launches.

    It stuck out to me not long ago when I saw a "Favorite Internet Marketers" thread. Back in 2006-2008, it was a list of major gurus. More recent lists are filled with people that are definitely more underground.

    So what do you think? Is it better for internet marketing not to have a consolidation of power? Or are people better off learning from "mainstream" gurus?
    Yes, it affected.
    People spend on average 20% less now according my statistics.
    I`m selling online 10 years, and can say that 20% loss is quite a problem...
    But still better that go to work 9-5...
    Thank you
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  • Profile picture of the author Nisip
    Banned
    It is NOT the recession but the fact that MILLIONS of indians, chinese, malaysians, asians, etc all do now Internet Marketing

    So the average income from IM became much too low. The average is less than $300 per month for most.

    And warriorforum is 120th website in THE WORLD consider alexa rank.

    This means that TOO MANY people are doing Inetrnet marketing... which produces nothing...
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  • Profile picture of the author Dave Rodman
    Banned
    You're saying that the Gurus make less now because there are more people from other countries in IM? I don't know about that. That's probably the case for writers though.
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