The effects of the recession
The other day I was asked what effect the recession is having on my various businesses. I gave my usual non-committal answer but, at the same time, I decided that the matter needed much more thought.
I have two major off-line business interests. One is suffering badly; customers have deferred expenditure on its products and services. Fortunately, I had anticipated the problems (but not their seriousness) at the end of 2007 / beginning of 2008 and had cut avoidable costs and prepared for the downturn. This business will survive and should pick up again when business and consumer confidence returns. My other off-line business is suffering, but not too badly.
I have recently spent a significant amount of time contemplating the future and drawing up action plans. Doing nothing is not an option.
The effect of the recession on internet marketing is difficult to fathom. Some areas, such as Google Adsense, are paying less as advertisers are not prepared to pay the pre-recession click rates. (This, by the way, is probably a mistake on their parts.) Some niches are unaffected and some are doing well.
An example of a niche that is, apparently, doing very well is ‘relationships’ (I do not have any ‘relationships’ niche interests). In a recession, people have less money and many lose their jobs. This creates tensions at home and relationships suffer. They look to the internet for solutions.
Competition, however, is increasing; you may have noticed new names around and a lot more “newbie” questions on the forums. You will find that there is still more than enough business to go round if you continue to work at it – remember, internet marketing is not an easy “get rich quick” option.
