Recession, what recession?

by Neil Morgan 40 replies
Credit crunch, what credit crunch?

This has been my best day for sales this year.

People are buying in this niche, no doubt about it.

Cheers,

Neil
#main internet marketing discussion forum #recession
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  • Profile picture of the author ExRat
    Hi Neil,

    Recession: Britain Is Already In Recession, According To British Chambers Of Commerce Report | Business | Sky News

    These guys beg to differ, but then they would, wouldn't they? Keep bucking the trend mate. I'm still smiling
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    Roger Davis

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    • Profile picture of the author Neil Morgan
      Hi Roger

      Yes, I saw that. It's fair to say that if the official figures suggest we're heading that way, then we're probably already there.

      I'm just sick of listening to them (the media) banging on about it 24 x 7.

      So now I listen to the headlines at night and that's it.

      Cheers,

      Neil
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    • Profile picture of the author faranak
      this is actually very odd because i have a credit repair review site and for some reason are not making any sales .another warrior is having the same experience so is good to hear you are making a lot of sales .it gives me hope to carry on.i appreciate any pointer as well
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      • Profile picture of the author Neil Morgan
        I don't know the credit repair niche so I can't really comment on that.

        That said, I'd suggest though that anything credit related is just grinding to a halt right now. People are just scared away from it with all the media attention.

        Also, people need to repair their credit rating when they're going to apply for credit. But there is no credit to apply for (as they're hearing on the news) so there's no point in them repairing their credit rating, is there?

        Just my thoughts, as I say, it's not a niche I know.

        Cheers,

        Neil
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        • Profile picture of the author Chris Monty
          I couldn't agree more. When blogs are being purchased for $15 million in a niche that is SUFFERING (banking), just imagine what could happen in a niche that's BOOMING.

          Besides, even if there is a recession here in the U.S. (is there really any doubt about this any more?), we can market to the whole WORLD via the internet. People are buying somewhere!
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          • Profile picture of the author Samuel P.
            This is the "clearing out" period. Those that are selling crap (like toxic mortgages) will go to the wayside, while those that are providing real value will flourish and make gains.

            Don't forget that advertising costs are down, so this is a time to expand, not contract.
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            • Profile picture of the author Chris Monty
              Originally Posted by Samuel P. View Post

              This is the "clearing out" period. Those that are selling crap (like toxic mortgages) will go to the wayside, while those that are providing real value will flourish and make gains.

              Don't forget that advertising costs are down, so this is a time to expand, not contract.
              You can say that again. Mortgage was my bread and butter before all of this.

              That's what motivated me to get my IM business going full steam ahead!
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      • Profile picture of the author ExRat
        Hi Neil,

        As I was about to post I see you took the words out of my mouth.

        ironic thanks to Neil for his last post
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        Roger Davis

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      • Profile picture of the author Peter Bestel
        Neil,

        Fascinating, because this has been our busiest week of the year too.

        I'm running a poll on the newly-found ask500people site which has some interesting stats so far. Admittedly only 50 replies but 20% have said that they're not stressing over the current situation, in fact, this is when they make money. Even if this is just bravado, it's still interesting.

        Ask500 - Does the present economic climate get you stressed?

        Peter

        PS I'm not too surprised to see an upturn in sales - given our niche
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        • Profile picture of the author faranak
          you mad a really good point .i just have to diversify until things change .many thanks
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  • Profile picture of the author writergirlk
    You know, I have seen no change in my business in relation to the economy. I've actually noticed that there is a lot more work for me - a writer. Companies that downsize still need writing done. Unemployed people who now have businesses online still need writing done ... Plus certain niches are doing very well despite the economy.
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  • Profile picture of the author Kim Standerline
    I'm doing very well also (touchwood)

    Kim
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  • Originally Posted by Neil Morgan View Post

    Credit crunch, what credit crunch?

    This has been my best day for sales this year.

    People are buying in this niche, no doubt about it.

    Cheers,

    Neil
    Yeah, because everybody would like to find a way to make a few extra dollars if for nothing else but to be able to fill the gas tank. It's a great time for this niche.

    On the other hand, we wouldn't HAVE a credit crunch if they simply gave the $700 billion to me. I would spend it and then the economy would be great. :p
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    • Profile picture of the author ShayB
      Originally Posted by Angela V. Edwards View Post

      Yeah, because everybody would like to find a way to make a few extra dollars if for nothing else but to be able to fill the gas tank. It's a great time for this niche.

      On the other hand, we wouldn't HAVE a credit crunch if they simply gave the $700 billion to me. I would spend it and then the economy would be great. :p
      I agree on both counts!

      Give that $700 billion to a group of moms and see how far they can stretch that money! Let them get ahold of the budget and see how much crap they cut from it!

      Seriously, why is balancing a budget so hard? People do it all the time with their OWN money - you would think you would be more careful when using other people's money, right?

      As far as a recession - it's not affecting me at all.

      I have a list of 1800 moms - and many of them need extra money. I am able to provide ideas for them - and they love it!
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      • just prepare for the big waves up ahead of us

        there are only 3 things that matters more than money

        1- Land attach to clean,big supply of fresh water
        2- Food
        3. Gold

        money loss value due to capitalist financial bases, and it gets worse now.. i suggest that you

        buy gold
        starts farming/ anything related to food even if u don't want to take care of them, hire people to operate them
        save clean fresh water/buy land attached to clean and fresh water
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  • Profile picture of the author Matt Hoey
    Just because we can't see or feel it right now in way that strikes us, does not mean it's not there. The markets are in constant freefall here in britain, i actually think it's worse here than anywhere in the world, i've been taking it for granted that it will pass over but the markets fell sharply again. I believe RBS fell by 49%?

    That's worrying, the government is about to take major steps to create a rescue plan but it seems nothing is stopping the problem right now and if one of the major banks closes we're all in for a big surprise whe we can't withdraw any cash.
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  • Profile picture of the author Matt Hoey
    I tihnk you have to remember, it's not quite yet the companies that are suffering (although a lot are).

    It's the banks and the banks are the base for generating funds for your business, for your debts, it's all debt on debt on debt, the bank doesn't actually have that much money, there's no equity so when it collapses it has nothing for reserve.

    If the banks go, the companies go and then we're really in the crud!
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  • Profile picture of the author derekwong28
    Officially there is no recession yet in most countries, it is just the stockmarket and credit market that had crashed. Financial markets are leading indicators about what may happen in the economy, rather than what is happening now. On the other hand, they will recover well before the economy does should a recession occurs.

    Therefore, the real test is not what your sales are doing now but what they will do within the next 6-12 months if a recession or depression does happen.

    -Derek
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  • Profile picture of the author vorales
    Originally Posted by Neil Morgan View Post

    Credit crunch, what credit crunch?

    This has been my best day for sales this year.

    People are buying in this niche, no doubt about it.

    Cheers,

    Neil
    Depending on person to person. A half glass of water some people says a half glass empty and some half glass full.Same thing here some people say its a recession and some see it as an opportunity.

    Well i agree with you Neil as a matter of fact a lot companies in the world are taking advantage of this recession.

    As a matter of fact Chinese Fund companies are eyeing 49% stake in Morgan Stanly.

    Mexican billionaire Carlos Sim is to buy New York City Times.

    J.P.Morgan is going for Washington Mutual.

    Citibank is fighting for Wachovia.

    As for an ordinary person is thinking of whether his personal savings and investments are safe or not,these big companies are taking up their position to takeover and buyouts.

    I hope and wish that this Global Financial crisis gets over as soon as possible so that every middle class human breaths with freedom n relax without fear.
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    • Profile picture of the author Martin Avis
      Re: Recession, what recession?
      I thought exactly that on Sunday when I visited Bluewater - Europe's biggest shopping mall. It was heaving! I have never seen it busier - even at Christmas.

      And the people weren't wandering around shell shocked, they were buying stuff in their droves. At least, they were jusdging by the number of big carrier bags everyone was lugging around.

      Maybe it is just that everyone has taken their cash out of the bank and rather than stuff it under the mattress, they have decided to go on a big spending spree!

      Martin
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  • Profile picture of the author Kim Standerline
    I'm actually considering adding to my property portfolio whilst the housing market price is down

    Kim
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  • Profile picture of the author Matt Hoey
    This is what britain faces. We have a very high personal debt.

    Britons' personal debt has now soared to more than £1.3 trillion, leaving us collectively more exposed to a downturn than ever before.

    If recession comes, the scenario to avoid is one that unfortunately traps countless families each time that there's a downturn. The story is sadly familiar. Through job losses or reduced hours, income suddenly plummets, leaving personal finances hopelessly exposed to high levels of household expenditure and debt payments. Worse, asset prices fall, making it harder to raise money by downsizing or selling those cars, expensive consumer electronics and other pricey items that the debts represent.

    --- taken from here Five Ways To Prepare For A Recession - 07/09/2007
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  • Profile picture of the author derekwong28
    I am stressed, I lost tens of thousands in stocks and mutual funds these few weeks. Depending on the severity of the shock to our property market, I stand to lose hundreds of thousands more within a few months.

    This crisis is extremely galling for us in Asia who went throught Asian Financial Crisis 10 years ago. The financial crisis did lead to a short depression in many countries, and our property prices did plunged to 70%. There were suicides left right and center all year round.

    One thing that I have observed is that attendance at malls is an extremely deceptive. As more people become unemployed, the more time they have to spend outside in malls and bars. It is the items they are buying and the price of these items that really matter.

    Of course, everybody hopes for the best but it would be silly not to have backup plans if things really do go downhill.

    Good luck to all

    -Derek
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    • Profile picture of the author Fabian Tan
      Made $700+ yesterday, past 2k for this month already. What recession indeed ;-)

      Fabian
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    • Profile picture of the author ExRat
      Hi Matt,

      I tihnk you have to remember, it's not quite yet the companies that are suffering (although a lot are).

      It's the banks and the banks are the base for generating funds for your business, for your debts, it's all debt on debt on debt, the bank doesn't actually have that much money, there's no equity so when it collapses it has nothing for reserve.
      With respect, this is a little short-sighted. What you seem to be suggesting is that business is not affected until banks collapse. The banking problems are being trumpeted so loudly that it's virtually impossible to hear the cries of the average business and what is happening to them.

      For example, in manufacturing - suppliers of raw materials are reducing the amount of time the manufacturer is allowed to take to pay. Yet the buyer of the end product is demanding MORE time for them to pay the manufacturer for the finished product.

      While simultaneously the banks are reducing the amount of borrowing that all of the parties have been using as a matter of course.

      Companies are going bust already, purely because their businesses have been (and have been encouraged to be) built around borrowing.

      As you can see from the posts here, depending on what type of business you have and how dependent it is on borrowing, decides how badly (if at all) you will be affected currently.

      Just look out for the 'creep' effect that will slowly but surely happen in all areas, domestically and in business. For example, I got a letter yesterday that on the surface appeared quite calm and normal (it was full of spin) but calmly landed the bombshell that my gas is rising 30% and my electricity 20%.
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  • Profile picture of the author Matt Hoey
    You'rwe right it's short sighted. I was just trying to give a scenario to the people who believe there is no recession a glimpse of how it can affect them.

    People say they are making money, which is great, but how much less is your home worth? How much more does petrol cost? how much more are you paying for everyday items and when you want to expand your business, how are you going to generate the funds? Banks won't lend you it, banks won't even lend each other.
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    • Profile picture of the author ExRat
      Hi Matt,
      You'rwe right it's short sighted. I was just trying to give a scenario to the people who believe there is no recession a glimpse of how it can affect them.

      People say they are making money, which is great, but how much less is your home worth? How much more does petrol cost? how much more are you paying for everyday items and when you want to expand your business, how are you going to generate the funds? Banks won't lend you it, banks won't even lend each other.
      Agreed . And I think the distraction of Christmas will be used for all sorts of things to be quietly 'slipped through' and costs increased. January might be a very long five week month for the average employee.

      Interestingly, banks are still lending at some levels. Mine does, and they are one of the ones in trouble.
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      • Profile picture of the author World IR
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        • Profile picture of the author Neil Morgan
          I wanted to add that I'm under no illusions about the severity of the current situation and how it affects ordinary people.

          I opened this thread with my tongue somewhere in my cheek, simply to point out that people are selling stuff and people are buying that stuff despite the goings-on.

          Cheers,

          Neil
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      • Profile picture of the author Dean Shainin
        Originally Posted by ExRat View Post

        Hi Matt,


        Agreed . And I think the distraction of Christmas will be used for all sorts of things to be quietly 'slipped through' and costs increased. January might be a very long five week month for the average employee.

        Interestingly, banks are still lending at some levels. Mine does, and they are one of the ones in trouble.
        This is the part I find ironic. I've been getting slammed with pre-approved credit "you know the type up to $50,000" from several banks the last few weeks. It's almost like they are desperate or something. On the other hand they are sending some folks notices that their interest rate has been increased.

        From my point of view the people that are really maxed out with credit might have some real issues.

        As already mentioned it will depend upon how your business is se up and what type of business you have.

        Most IM that have been at it for some time have many systems in place including myself. The first system I've really noticed is AdSense is way down the last 30 days. Why? Most likely some advertisers are cutting back their costs any way they can. In fact I paused an AdWords campaign just last week because the performance has changed big time.

        On the other hand my own products have been selling like crazy most likely people are scrambling to find other ways to keep their life style or something of that nature. Maybe trying to keep their car payment or even their house payment?

        Many of us have our systems in place in the IM community but those in the 9 to 5 jobs might have some interesting times ahead and it's a great time for these people to start looking at creating their own business online.

        One thing I can say is that I'm very grateful to have simplified my life even though I could be driving a really nice car, I drive my old 4X4 truck and some friends kinda give me a hard time about it asking "why don't you get a new car"?

        Freedom is the one thing that got me into IM in the first place and freedom is what gets me excited. I've already had so many new cars and all the stuff so many people need and want. One problem... Without credit many of these people would not be able to have most of this stuff and it scares many people for some reason.

        One thing I thought was really interesting was when I went to close my savings account a few weeks ago simply because of the ridiculous .10% it pays, the tellers acted like the end was near. Well, at the time I did not realize it was for them. Their jobs are on the line and the end is near for many of the folks working at some of the banks.

        Cheers,
        Dean
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  • Profile picture of the author abelacts
    We should be grateful that we are not affected by this crap called economic. Isn't it good if you know you are resilient to this and life goes on as usual... or for some, better.
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  • Profile picture of the author derekwong28
    Yup, I am waiting for the prices of revenue producing websites and domains to drop before I scoop them up.
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  • Profile picture of the author derekwong28
    I would add guns and ammunition as well.
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    • buy gold..the value won't fall as much as paper money ... gold is more stable, at least periodly...
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  • Profile picture of the author AverageGuy
    I do not know whether Recession is here or not. My online sales is getting better. My income is increasing gradually. However, here are some facts:
    1) in my neighbourhood, more and more people are losing their houses. Many houses are for selling for a long time. The price dropped more than 20% compared to the price early this year (too bad I bought the house at that time), .
    2) the highway in my neighbourhood area was (not sure is) one of the most heavy traffic areas around LA. before, it would take me 45 minutes to drive to office in the morning. Now, much less traffic, it takes me 30 minutes. I guess it is because people lost their jobs.
    3) more and more people post on craigslist for moving sale (possibly, they lost house) or part-time job.

    I still do not know whether Recession is here or not, but I guess it is not far away.



    david
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  • Profile picture of the author IMChick
    Forget gemstones, especially diamonds--and any market that has been artificially manipulated. Silver will also hold value, and is within reach cost-wise.
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    • Profile picture of the author Ricter
      Gold just doesn't have high enough intrinisc value to replace paper, imho, which is why the gold clique needs to keep hawking it. At least with paper I can kindle a fire, or stuff my clothing with it and get some insulating value.

      I suggest drinking water as the new medium of exchange!
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  • Profile picture of the author Hugh
    I have been through slow times before. When things are up,
    it's easy to make money. When things slow down, the good
    marketers get better and the poor marketers fall by the
    wayside. Remember that in the absolute worst of times, over
    50% of the people are still well off, relatively speaking.

    Hugh
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    "Never make someone a priority in your life who makes you an option in theirs." Anon.
    "Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon." -- Winston Churchill

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  • Profile picture of the author GuerrillaIM
    I'm making loads of sales. Not had 1 single objection related to current economy.

    One thing I am noticing though is that lots of people I'm talking to are getting made redundant and when I advertise a job (as I did last week) I am receiving twice as many applicants for it.
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