How To Survive and Prosper During an Economic Downturn!
I don't know how old many of you are. I also don't know what your sales or business background is.
I am 52 years old and have been in sales for 30+ years. During that time I have seen the effects of a recession on my personal businesses. (In case you may not know or don't remember in the 1980s car loan interest rates were running around 15% or higher.)
I was a former Toyota automobile dealer and can personally tell you the effects of high interest rates and tight money.
Fortunately or unfortunately everything works in cycles.
The true measure of the economy in my opinion-- and many others-- are these 3 factors:
1. New home sales
2. New Car Sales
3. Unemployment Statistics
So where do we stand?
* Housing: According to recent newspaper reports, new home sales in August were down by 11.8%. This is the biggest downturn in housing sales in the last seven years. (Some of these numbers are skewed only because in the last 10 years we have enjoyed a financial and economical boom that is unparalleled)
* New Car Sales: With increased operational expenses, the credit crunch and weak sales new car dealers are closing their doors. The current estimate 3800 new car dealers will be closing their doors because of current sales and the other factors mentioned.
* Unemployment: The unemployment rate in this country is currently at 6.1%. That is its highest level since September 2003.
Pretty depressing, huh?
If you have invested in the stock market previously, then you know there are always opportunities for money to be made. I am not going to get into a discussion of stock market investment strategy for a bear market, but I will share with you some of the lessons I have learned-- to prosper in a recessionary economy-- as it applies to Internet marketing.
Some of these are common sense and you may have already implemented them.
1. Reevaluate Your Budget: Cut back on all unnecessary expenses: For an online business you may want to look at cheaper web site hosting. If you use a fulfillment company as I do, you may want to shop around for a cheaper fulfillment company. You may look at lowering your shipping costs by renegotiating your contract with FedEx or whomever you use.
2. Increasing Sales: If you currently have a 1 to 2% conversion rate on your sales letter you will probably find your conversion rate being cut in half. Most companies will cut back on their advertising expense during an economic downturn. As a salesperson first, my solution has always been to increase my exposure by utilizing "Guerrilla Marketing." In Internet marketing that would be to utilize more-- article marketing, YouTube marketing and exploring any other way of getting more traffic to my site. (longtail keywords on PPC)
3. Work Harder: In good times you don't have to work too hard to make money-- people have a buying mentality and will spend their money. In an economic downturn-- fewer people want to spend their money. Let me give you a fishing analogy to explain this concept. If you're fishing with a net in an area that has a lot of fish you can use any size net to catch them. In an area, where there are fewer fish... you must cast a wider and longer net. If you normally write 5 articles per day, try to double it. Look for other ways to drive traffic to your site.
Bottom line is you can accept a weaker economy and slower sales or you can do something about it.
Just my opinion -- but it's proven to work.
Mad Money
I am 52 years old and have been in sales for 30+ years. During that time I have seen the effects of a recession on my personal businesses. (In case you may not know or don't remember in the 1980s car loan interest rates were running around 15% or higher.)
I was a former Toyota automobile dealer and can personally tell you the effects of high interest rates and tight money.
Fortunately or unfortunately everything works in cycles.
The true measure of the economy in my opinion-- and many others-- are these 3 factors:
1. New home sales
2. New Car Sales
3. Unemployment Statistics
So where do we stand?
* Housing: According to recent newspaper reports, new home sales in August were down by 11.8%. This is the biggest downturn in housing sales in the last seven years. (Some of these numbers are skewed only because in the last 10 years we have enjoyed a financial and economical boom that is unparalleled)
* New Car Sales: With increased operational expenses, the credit crunch and weak sales new car dealers are closing their doors. The current estimate 3800 new car dealers will be closing their doors because of current sales and the other factors mentioned.
* Unemployment: The unemployment rate in this country is currently at 6.1%. That is its highest level since September 2003.
Pretty depressing, huh?
If you have invested in the stock market previously, then you know there are always opportunities for money to be made. I am not going to get into a discussion of stock market investment strategy for a bear market, but I will share with you some of the lessons I have learned-- to prosper in a recessionary economy-- as it applies to Internet marketing.
Some of these are common sense and you may have already implemented them.
1. Reevaluate Your Budget: Cut back on all unnecessary expenses: For an online business you may want to look at cheaper web site hosting. If you use a fulfillment company as I do, you may want to shop around for a cheaper fulfillment company. You may look at lowering your shipping costs by renegotiating your contract with FedEx or whomever you use.
2. Increasing Sales: If you currently have a 1 to 2% conversion rate on your sales letter you will probably find your conversion rate being cut in half. Most companies will cut back on their advertising expense during an economic downturn. As a salesperson first, my solution has always been to increase my exposure by utilizing "Guerrilla Marketing." In Internet marketing that would be to utilize more-- article marketing, YouTube marketing and exploring any other way of getting more traffic to my site. (longtail keywords on PPC)
3. Work Harder: In good times you don't have to work too hard to make money-- people have a buying mentality and will spend their money. In an economic downturn-- fewer people want to spend their money. Let me give you a fishing analogy to explain this concept. If you're fishing with a net in an area that has a lot of fish you can use any size net to catch them. In an area, where there are fewer fish... you must cast a wider and longer net. If you normally write 5 articles per day, try to double it. Look for other ways to drive traffic to your site.
Bottom line is you can accept a weaker economy and slower sales or you can do something about it.
Just my opinion -- but it's proven to work.
Mad Money