Why A Recession Helps YOU!

FrankRumbauskas · 12-29-2008, 02:11 PM

I am closing out the month and am happy to report that I've had my best December ever, and it's my 6th one. Yes, 6 years marketing online

Not only was it my best December ever, it was my best MONTH ever!!! And this is deep in the bottom of a recession.

Why?

Well, it's very simple. The onset of the recession got my butt into gear big time. If you know me, you know I'm not like most marketers. I don't go to my office every day. I don't travel and I rarely speak at seminars. Instead, I enjoy the laid-back coastal lifestyle here in Newport Beach. I'm practically retired at 35. (And have been since 30.) When someone comes to me with advice on time management, I say, "If you need time management, your business model is inherently flawed." I explain that I live the 4-Hour Workweek, and others should too.

Having said all that, after the massive stock market crashes in November, I made an exception to the rule. I informed my girlfriend that she wouldn't be seeing much of me in the coming weeks, and I began going to my office 5 days a week, all day, which I have to admit I do enjoy. It's like my own little clubhouse

In those weeks, I tweaked my copy. I rewrote part of my sales letters. I did tons of split-testing. I had some new killer scripts created by my programmers, to improve my conversions even more. I shot some brand-new video OTOs. I brought on a new VA solely to do social bookmarking and article posting all day long. I massively improved my autoresponder deliverability by setting up my own mail server. And on, and on.....

The result?

Well, I already told you that. BEST MONTH - EVER! At a time when the mainstream media says I should be going out of business.

The point here is that a recession is one of those unique opportunities to improve your business, and wind up coming out ahead, even after you figure the effects of the recession into the equation. This is my only December ever that had no holiday slowdown. Orders even kept coming in on Christmas day, and this past weekend was big as well.

The end result of the past month's intensive testing and improving is a doubling of my daily order volume. DOUBLE. This MORE than offsets any effects the recession is having on my business. In the end, I come out ahead. And this week, with family in town visiting, I look at the day's orders every night and just laugh and smile

Rachel Goodchild · 12-29-2008, 02:26 PM

Like any tight time, the environment will bring out the problem solvers
I'm not stressed about the future- I'm excited

It's not a bad time if you find a way around it

nicholasb · 12-29-2008, 02:35 PM

I am having the best months of my life right now, I blame the recession.. Steaks ribs and shrimp every night, when will the madness end.

My business is growing faster than ever before. the recession does help if you are really trying to help people and make things better, If you are busy trying to swindle people you will eventually collapse your business from the inside.

just look at the banks and housing industry, they cant honestly say they were trying to help people.

A few bad months wont put me out of business.

naruq · 12-29-2008, 02:51 PM

Great Post Frank! I agree with you. During the month of December 2008 I have been getting consistent orders. It has not been my best month, however my business has not slowed. If you have solutions for prospects/clients your business will continue to prosper in a recession.

Fabian Tan · 12-29-2008, 09:49 PM

I think most people just react to the environment.

When there is a recession, people spend less. When it's boom time, people spend more.

When there is a recession, some people work harder, some people get discouraged.

All just reactions.

"Be logical when others are emotional, be emotional when others are logical". It's really the same as Warren Buffett's take that you should be greedy when others are fearful.

The reason most people are stuck in their day jobs is because they are being 'logical'. After all, logic is just really the status quo.

But they are emotional when it comes to spending - spending money on lifestyle 'toys'.

One secret to insane business success is to be emotional (passionate) when others are logical and be logical (buying/investing in things you need) when others are buying toys.

Fabian

Joe_Stec · 12-29-2008, 10:00 PM

Making sales when no one has any money to spend *should* seperate the good marketers from the mediocre marketers. The funny thing is, I am actually witnessing just as much volume when things go down than when they were "up". Seems like people will buy whether or not they have the money - debt is somewhat of a "no-biggie" these days. No cash in hand? Reach for the credit card! As long as there are hoardes of card carrying financially illiterate people, there will be hoardes of people lining up to buy whatever you're selling!

Case in point - people wrapped around city blocks waiting to buy the new IPhone a few months back. Potential economic crisis? Psshhhhh. Come on... these people need their toys...

Sad, alarming, true.

imaddict · 12-29-2008, 10:02 PM

Quote:

Originally Posted by Fabian Tan

"Be logical when others are emotional, be emotional when others are logical".

Fantastic quote!

amylimcd · 12-29-2008, 10:12 PM

I can give a few examples of how recessionary periods can bring out the best in small business.

1. I focus on the small business market and I noticed a fast drop in leads and revenue in early fall.

This was a blessing in disguise as it required us to focus on what really brings in the money and where we can and needed to make changes to increase revenue.

By being forced to look at my businesses and analyze where there was profitability and where there was waste. I got rid of expenses that were not providing any return and was able to better define submarkets that are most profitable and then to increase traffic from those markets- so while my traffic is down with some sites, revenue has turned up as our conversions have improved. IN the end, I have a much more efficient and profitable business

2. I have a friend who was laid off in September from a high paying executive job. While he was stressed about finding a good job, I convinced him to start an Internet based business on the side while he was job searching. So, he did and now, at the end of the year, his site brings in 3-5 sales a week. He would have never done this had he not been laid off. . . while the money isn't close to replacing his W-2 income, he sees the potential. . . and now he is wondering whether he even wants another corporate job.

Recessions often give (or force) people a little push to get outside their comfort zone and this is the first step to growth- both financially and personally.

12-29-2008, 02:11 PM	#1
FrankRumbauskas HyperActive Warrior War Room Member Join Date: Nov 2008 Posts: 180 Thanks: 4 Thanked 46 Times in 36 Posts	Why A Recession Helps YOU! I am closing out the month and am happy to report that I've had my best December ever, and it's my 6th one. Yes, 6 years marketing online Not only was it my best December ever, it was my best MONTH ever!!! And this is deep in the bottom of a recession. Why? Well, it's very simple. The onset of the recession got my butt into gear big time. If you know me, you know I'm not like most marketers. I don't go to my office every day. I don't travel and I rarely speak at seminars. Instead, I enjoy the laid-back coastal lifestyle here in Newport Beach. I'm practically retired at 35. (And have been since 30.) When someone comes to me with advice on time management, I say, "If you need time management, your business model is inherently flawed." I explain that I live the 4-Hour Workweek, and others should too. Having said all that, after the massive stock market crashes in November, I made an exception to the rule. I informed my girlfriend that she wouldn't be seeing much of me in the coming weeks, and I began going to my office 5 days a week, all day, which I have to admit I do enjoy. It's like my own little clubhouse In those weeks, I tweaked my copy. I rewrote part of my sales letters. I did tons of split-testing. I had some new killer scripts created by my programmers, to improve my conversions even more. I shot some brand-new video OTOs. I brought on a new VA solely to do social bookmarking and article posting all day long. I massively improved my autoresponder deliverability by setting up my own mail server. And on, and on..... The result? Well, I already told you that. BEST MONTH - EVER! At a time when the mainstream media says I should be going out of business. The point here is that a recession is one of those unique opportunities to improve your business, and wind up coming out ahead, even after you figure the effects of the recession into the equation. This is my only December ever that had no holiday slowdown. Orders even kept coming in on Christmas day, and this past weekend was big as well. The end result of the past month's intensive testing and improving is a doubling of my daily order volume. DOUBLE. This MORE than offsets any effects the recession is having on my business. In the end, I come out ahead. And this week, with family in town visiting, I look at the day's orders every night and just laugh and smile
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12-29-2008, 02:26 PM	#2
Rachel Goodchild writer and presenter War Room Member Join Date: Nov 2006 Location: Auckland , New Zealand. Posts: 1,574 Thanks: 7 Thanked 62 Times in 36 Posts Social Networking	Re: Why A Recession Helps YOU! Like any tight time, the environment will bring out the problem solvers I'm not stressed about the future- I'm excited It's not a bad time if you find a way around it
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12-29-2008, 02:35 PM	#3
nicholasb Senior Warrior Member War Room Member Join Date: Jul 2008 Location: , , USA. Posts: 1,910 Thanks: 85 Thanked 677 Times in 253 Posts Social Networking	Re: Why A Recession Helps YOU! I am having the best months of my life right now, I blame the recession.. Steaks ribs and shrimp every night, when will the madness end. My business is growing faster than ever before. the recession does help if you are really trying to help people and make things better, If you are busy trying to swindle people you will eventually collapse your business from the inside. just look at the banks and housing industry, they cant honestly say they were trying to help people. A few bad months wont put me out of business.
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12-29-2008, 02:51 PM	#4
naruq Karim Join Date: Jul 2008 Location: New York Posts: 664 Thanks: 0 Thanked 35 Times in 33 Posts	Re: Why A Recession Helps YOU! Great Post Frank! I agree with you. During the month of December 2008 I have been getting consistent orders. It has not been my best month, however my business has not slowed. If you have solutions for prospects/clients your business will continue to prosper in a recession.
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12-29-2008, 09:49 PM	#5
Fabian Tan FabianTan.com War Room Member Join Date: Nov 2006 Location: Singapore Posts: 3,473 Thanks: 217 Thanked 385 Times in 119 Posts Social Networking	Re: Why A Recession Helps YOU! I think most people just react to the environment. When there is a recession, people spend less. When it's boom time, people spend more. When there is a recession, some people work harder, some people get discouraged. All just reactions. "Be logical when others are emotional, be emotional when others are logical". It's really the same as Warren Buffett's take that you should be greedy when others are fearful. The reason most people are stuck in their day jobs is because they are being 'logical'. After all, logic is just really the status quo. But they are emotional when it comes to spending - spending money on lifestyle 'toys'. One secret to insane business success is to be emotional (passionate) when others are logical and be logical (buying/investing in things you need) when others are buying toys. Fabian
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12-29-2008, 10:00 PM	#6
Joe_Stec Warrior Member Join Date: Dec 2008 Posts: 11 Thanks: 0 Thanked 0 Times in 0 Posts	Re: Why A Recession Helps YOU! Making sales when no one has any money to spend should seperate the good marketers from the mediocre marketers. The funny thing is, I am actually witnessing just as much volume when things go down than when they were "up". Seems like people will buy whether or not they have the money - debt is somewhat of a "no-biggie" these days. No cash in hand? Reach for the credit card! As long as there are hoardes of card carrying financially illiterate people, there will be hoardes of people lining up to buy whatever you're selling! Case in point - people wrapped around city blocks waiting to buy the new IPhone a few months back. Potential economic crisis? Psshhhhh. Come on... these people need their toys... Sad, alarming, true.

12-29-2008, 10:12 PM	#8
amylimcd HyperActive Warrior War Room Member Join Date: Oct 2008 Posts: 105 Thanks: 29 Thanked 33 Times in 15 Posts	Re: Why A Recession Helps YOU! I can give a few examples of how recessionary periods can bring out the best in small business. 1. I focus on the small business market and I noticed a fast drop in leads and revenue in early fall. This was a blessing in disguise as it required us to focus on what really brings in the money and where we can and needed to make changes to increase revenue. By being forced to look at my businesses and analyze where there was profitability and where there was waste. I got rid of expenses that were not providing any return and was able to better define submarkets that are most profitable and then to increase traffic from those markets- so while my traffic is down with some sites, revenue has turned up as our conversions have improved. IN the end, I have a much more efficient and profitable business 2. I have a friend who was laid off in September from a high paying executive job. While he was stressed about finding a good job, I convinced him to start an Internet based business on the side while he was job searching. So, he did and now, at the end of the year, his site brings in 3-5 sales a week. He would have never done this had he not been laid off. . . while the money isn't close to replacing his W-2 income, he sees the potential. . . and now he is wondering whether he even wants another corporate job. Recessions often give (or force) people a little push to get outside their comfort zone and this is the first step to growth- both financially and personally.