How Will The Current Economy Effect IM?

by Scot Standke 19 replies
Hey Warriors,

With the past few weeks of doom and gloom around the globe on the economic front,
how do you think this will effect us as online marketers?

I have heard many times from the "gurus" that this is a recession proof business. But
I have to wonder if you are worried about putting food on your table because you
just got laid off, are you more apt to look to the internet for ways to make a little
extra income to tide you over, or do you pocket the money for a rainy day?

Are you still going to shell out that $17 for an ebook on natural acne cures, or do
you think twice now?

Do you lay down a hard earned $997 for the latest and greatest internet marketing
thing since sliced bread in hopes that it's the answer to your money problems or do
you set that money aside for next months mortgage payment?

I know it's early yet in this worldwide crisis, but has anyone noticed a significant
downturn in orders this week, or have you seen an increase? Or has it been par for
the course so far?

I for one have not noticed any realy noticeable changes as of yet.

I'd be interested in hearing a few different perspectives on this.

Scot
#main internet marketing discussion forum #current #economy #effect
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  • Profile picture of the author LegitIncomes
    I think a certain percentage of those that have been purchasing IM products for a long time (buyers but not action takers) will cut back.

    But I also think that a lot of people who have never previously purchased an IM product (perhaps because they previously had job security and now don't), will start to do so.
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    • Profile picture of the author Scot Standke
      Originally Posted by Josh Kulp View Post

      But I also think that a lot of people who have never previously purchased an IM product (perhaps because they previously had job security and now don't), will start to do so.
      That's a great point Josh.

      Another couple days with huge losses are under our belt, it will be interesting to see how this plays out over the next several months.

      Scot
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      • Profile picture of the author Steven Wagenheim
        Scott, I was actually in this place a while ago.

        I lost my job so for me, it was an economic crisis.

        I turned to the Internet and DID spend money on what I needed to do to
        get me started.

        So I think for those looking for extra cash, they'll probably purchase if
        they haven't already bought a ton of stuff.

        As for everything else, I honestly have no idea. And even with the above, I
        am only speculating.

        Ultimately, my own sales figures for October and beyond will tell me if IM
        is REALLY recession proof.
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    • Profile picture of the author rontoski
      Scot,
      Without a doubt the current economy is taking a toll on all of us in one way or another. Personal example: On Tuesday I lost $4783.09 overnight from my 401k-On Wednesday I lost $3850.16-On Thursday I lost $1005.27. Moved money from stocks to bonds yesterday and counting transfer fees and loss sustained before the move--I lost another $6545.37. I think I have stopped the losses now.

      When you see your 401k sinking and you see what the markets are doing and you hear the wise men pontificating--you realize there is some kind of panic going on. It will, as all panics do, eventually go away.

      But for now those who may have thought they should be taking on a second stream of income to help in the golden years are surely thinking more earnestly today. Some will make a move today, more tomorrow.

      People do what is usually in their best interest. Some it takes longer to move. But eventually most will take their first steps.

      Internet marketing is mostly recession proof. Because we sell dreams and goals and fantasy and money. These are good things. People need to dream. People need money. As long as people dream and need money IM will do well.

      The country is going through a rough spell that didn't start under the current administration's actions--God knows Mr. Bush has made his own mistakes. But we are dealing with decisions and actions that took place as far back as Jimmy Carter and the guys who followed him. Factor in some crooks and fast-dealers and the system starts to unwind. It has a ways to go, but it will correct itself. In the meantime. Advertise, blog, write your articles, prepare your offers. The market is ripe for the right offers. It always is. Never, never, never fear. Just be sensitive and sensible.
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  • Profile picture of the author tommygadget
    I say people will be scrambling for a way to make more money outside their 9-5.

    TomG.
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    • Profile picture of the author Scot Standke
      Originally Posted by tommygadget View Post

      I say people will be scrambling for a way to make more money outside their 9-5.

      TomG.
      That is, if they still have their 9 to 5.

      Some of these large corporations, like GM, lost 25% of their net worth in the course of a week.

      That right there tells me there's going to be some massive layoffs across the board.

      This will be a very interesting time to observe. Christmas is just around the corner, and you know people are going to be spending less on gifts this year.

      This is just one huge snow ball that continues to roll downhill out of control. Let's hope calmer heads prevail and things take a turn for the better soon.

      Scot
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      • Profile picture of the author Bon508
        Great question, Scot, and one that's been on my mind a lot lately.

        I've noticed a dip in sales of my job interview-related product. That may or may not have something to do with the economy, but it makes me wonder. A lot of people are losing their jobs; I'd think sales of a product that will help them get a new one would be up at such a time. So it's perplexing. Just for the record, I'm not taking advantage of this ugly economic situation (not that doing so would necessarily be a bad thing); I've had my site and product online for more than 5 years.)

        On the one hand, I think people will be spending less money on just about everything. On the other, I agree with Tom that they'll be looking for (and willing to pay for) ways to earn more money. And as Steven has pointed out, this crisis may be a catalyst for some to take bolder action than they normally would and try something completely different (such as IM).

        Whatever happens, like you said, it'll be very interesting to observe.
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        • Profile picture of the author Kay King
          Good products and necessary products will continue to sell but I would fully expect a dip in luxury or impulse buys and in IM this might also decrease upgrades in some programs.

          One thing I've not seen mentioned is that refunds may increase as people watching money carefully will not keep a product that does not live up to its sales pages.

          Online I believe we are in better position to make quick changes to adjust to market demands than offline retailers are. However, I don't think IM is recession proof - in this current economy, I don't think any business can claim that.

          kay
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          • Profile picture of the author MaskedMarketer
            Originally Posted by Kay King View Post

            Online I believe we are in better position to make quick changes to adjust to market demands than offline retailers are. However, I don't think IM is recession proof - in this current economy, I don't think any business can claim that.kay
            This is so true and why I like working online. We can make quick changes and adjustments and may not cost much or any money at all. Defintely a plus.Internet marketing CAN be recession proof, depeding on the industry you are in. And there are industries out there that are recession proof. Actually, the industry im about to dive into does better in a recession. Just because one person doesn't know about it doesn't mean it doesn't exist. If you look hard enough you can find businesses that can still do well or even better during a recession.
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            • Profile picture of the author trafficwave
              Originally Posted by MaskedMarketer View Post

              Just because one person doesn't know about it doesn't mean it doesn't exist.
              VERY well said. A lot of folks tend to go with the "This has never worked for me so it will never work for anybody" method of living life.

              Or ... "It hasn't been true for me so it can't be true for you."

              I've lived most of my life thinking outside the box. What the "pros" say can't be done is being done.

              It used to be "impossible" to run a 4 minute mile. Now you aren't competitive unless you can run the 4 minute mile.
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              • Profile picture of the author MaskedMarketer
                Originally Posted by trafficwave View Post

                VERY well said. A lot of folks tend to go with the "This has never worked for me so it will never work for anybody" method of living life.

                Or ... "It hasn't been true for me so it can't be true for you."

                I've lived most of my life thinking outside the box. What the "pros" say can't be done is being done.

                It used to be "impossible" to run a 4 minute mile. Now you aren't competitive unless you can run the 4 minute mile.
                Some peope don't want to believe there are better ways of making money in business when the economy is down. Actually, some businesses flourish when the economy is dying.Donald Trump made a lot of his money in an economic downturn somewhat simliar to now back around the 70's.It may be harder and you may have to be more creative, but its possible to make the same money or more during a receission, if you in the right niche.
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  • Profile picture of the author trafficwave
    I think a better question might be:

    "How can IM impact the current economic situation?"

    During the "Great Depression" (what was so 'great' about it?), our economy was primarily based on industry, manufacturing, etc...

    I think our economy is much more diverse today. Information is much more in demand. Information is also much more accessible than before.

    IM gives us the ability to adapt quickly.

    It used to be, "But there just aren't any jobs out there".

    Today, we have the opportunity to say, "Job? Who needs a job?"

    We can literally launch new projects within days of conception.

    The US may be having its share of struggles right now, but there are certainly more than enough opportunities available here.

    AND with the global reach of the Internet, we can sell in virtually any country we would like.

    I realize that people are taking some hard hits due to the current economic situation. But we should realize that there are also a lot of opportunities out there and we in IM are positioned to make the most of those opportunities.
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    • Profile picture of the author seasoned
      Originally Posted by trafficwave View Post

      I think a better question might be:

      "How can IM impact the current economic situation?"

      During the "Great Depression" (what was so 'great' about it?), our economy was primarily based on industry, manufacturing, etc...
      RIGHT, and NOW it is primarily SERVICE!!!!!!!

      Originally Posted by trafficwave View Post

      I think our economy is much more diverse today. Information is much more in demand. Information is also much more accessible than before.
      NOPE! And information was in demand then, just not so available!

      Originally Posted by trafficwave View Post

      IM gives us the ability to adapt quickly.
      Not if they aren't into what you can provide.

      Originally Posted by trafficwave View Post

      Today, we have the opportunity to say, "Job? Who needs a job?"
      Do you forget that everything is a job. You NEED employers, even if you have millions, and they are called customers.

      Originally Posted by trafficwave View Post

      We can literally launch new projects within days of conception.
      Again, doen't mean much if they don't need it.

      Originally Posted by trafficwave View Post

      The US may be having its share of struggles right now, but there are certainly more than enough opportunities available here.
      Actually, it is the WORLD! MAN, ICELAND is talking to russia to get financing! Iceland just took over the third back, and SHUT DOWN their securities markets! INCREDIBLE! And you think it is just the US!?!?!?!?

      Originally Posted by trafficwave View Post

      AND with the global reach of the Internet, we can sell in virtually any country we would like.
      Doesn't matter, as nearly EVERY country is getting hit.

      Originally Posted by trafficwave View Post

      I realize that people are taking some hard hits due to the current economic situation. But we should realize that there are also a lot of opportunities out there and we in IM are positioned to make the most of those opportunities.
      BOY, you sound like a kid with a new bicycle! "NOW I CAN GO EVERYWHERE!"! NEVER mind that you can't go as far, as fast, or carry as much!
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  • Profile picture of the author trafficwave
    Sounds like you're having a rough day.

    We clearly have differing perspectives on the situation and I appreciate you taking the time to share yours.
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    • Profile picture of the author jan roos
      History has showed that network marketing does very well in a recession so I am not worried about my business. I actually think this recession will be good for my business as more and more people will turn to the internet to try and make some money.

      Cheers
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  • Profile picture of the author UcheO
    I think it all depends on the business you're running. If people can see themselves without the product then they are going to be less likely to buy it. However, some products and services I don't believe will be effected much at all, out of the fact that they are near necessity.
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  • Profile picture of the author SullyUI
    I think that experts in internet marketing and entrepreneurship are the safest in times of recession. Why? Because they know how to adapt quickly, find new markets, and create products that will always be in demand, no matter what the Dow Jones average is.
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    • Profile picture of the author JohnMcCabe
      [Said with tongue firmly in cheek...]

      I think there will be a world wide shortage of ebooks on acne and dog training as marketers flock to forums to discuss the poor economy...:p:p
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    • Profile picture of the author MaskedMarketer
      Originally Posted by Sully Chaudry View Post

      I think that experts in internet marketing and entrepreneurship are the safest in times of recession.
      Def agree with entrepreneurs being able to make the most out of this recession. People who rely on there jobs and on corporate america will probably be affected the most. Those that create there own income will still be effected, but as you said, they will hopefully adapt quickly with the changes.\
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  • Profile picture of the author Mark M. Bravura
    Interestingly, everyone on this thread naturally assumes that there will in fact be an internet to connect to.

    China's already proven their ability to shut off their citizen from the web; and given the current global situation, I would not put it past other political leaders, as well.

    That said, fulfilling an actual need (make money/save money/solutions to widespread prob's, like ungodly gas prices) will likely do even better in a recession.
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