IM and the Next Recession

[TGZ]

Hello everyone,

I'm a big economics and financial markets nerd, and I have been thinking about a few things. We have been in a long economic expansion since 2009 and a lot of pundits and market people are predicting a recession in the next few years.

Currently I am watching Amazon, they have dropped 9% after missing earnings estimates yesterday. In a recession I could see them (theoretically) heavily cut affiliate commissions. This could really hurt people who are overly dependent on one revenue source.

I know a lot of internet marketers think of themselves as "free" because they aren't in the 9 to 5, however if there is another recession when there is another recession everyone will feel it. In a positive note, there is also massive potential to capitalize on the fear during the next recession with great marketing.

The question is, how will your internet business fare in the next economic downturn? And what will you do to recession-proof it?

 

[bernard]

Buy crypto I guess? Crypto should theoretically move like gold aka a safe haven when financial markets are in trouble.

Otherwise, prep up, step up, be ready for the nuclear wasteland.

 

[animalstyle]

Follow the eyeballs - monetize financial/market related content.

 

[eliquid]

The question is, how will your internet business fare in the next economic downturn? And what will you do to recession-proof it?

Regardless of the economy, everyone still buys stuff.

You just got to know what stuff they buy, and who those people are.

I remember when everything fell apart last time and everyone was screaming bloody murder and needed obama phones and 99 weeks unemployment. That same time, I needed a new MacBook Pro and couldn't get one because Apple was sold out and had a waiting list. wtf....

Recession != people not buying or being smart with their money.

You just gotta know what to push, and to whom.

.

 

[TGZ]

Regardless of the economy, everyone still buys stuff.

You just got to know what stuff they buy, and who those people are.

I remember when everything fell apart last time and everyone was screaming bloody murder and needed obama phones and 99 weeks unemployment. That same time, I needed a new MacBook Pro and couldn't get one because Apple was sold out and had a waiting list. wtf....

Recession != people not buying or being smart with their money.

You just gotta know what to push, and to whom.

.

Are there certain areas that get hit hardest in internet marketing during a recession. I'm new but it intuitively makes sense that Amazon could cut affiliate commissions, or Google could cut fees for advertisers.

I guess the answer is to just diversify or own more of the income sources?

 

[Zach]

I majored in economics myself and used to think a lot like your original post. Over time I've learned to "mute" this side of me or give it little consideration. Thoughts like these were wasteful and took away from my advancement. Just a bunch of analysis paralysis crap.

Figure out a project to work on and go take action.

 

[TGZ]

I majored in economics myself and used to think a lot like your original post. Over time I've learned to "mute" this side of me or give it little consideration. Thoughts like these were wasteful and took away from my advancement. Just a bunch of analysis paralysis crap.

Figure out a project to work on and go take action.

I fully agree that theorizing is an issue, however personally I have no issue putting the blinders on and doing the work.

I think with proper foresight more money can be made.

 

[Ryuzaki]

Recessions are when billionaires are made.

Money always flows, it's the life blood of society. It's green karma. We've boiled all of the bartering and questions of value down to one variable, based on supply and demand.

In these cases it boils down to demand. What is always in demand because it's inescapable? Put yourself in the middle of that flow and you will have money.

Electricity, groceries, transportation, clothing, rental properties, cheap entertainment.

Think about guys like Buffet who bought massively when everything was low. Think about guys like Soros and the Rothschilds who even manufactured recessions in order to buy low. Think about Dan Peña, who bought up a ton of oil companies' debts from banks with loans from banks.

You don't necessarily have to position yourself for that now. If you're a good strategist you can pull it off when the time comes. Perhaps by ignoring it now, you'll be in a better position to get into a better position when the time comes. I agree with @Zack's sentiment while recognizing it's not something you personally deal with. There's so much money to be had NOW that if you get it you'll coast through a recession and have the cash to come out the other side at 10x your current worth.

 

[Diehard Otis]

I'm definitely in agreement with what several of the earlier posters have stated.

@TGZ I don't minimize your concerns, but I can tell you personally that worrying about the sky falling has arrested my development by years. That is a mistake that definitely won't be made again.

In my mind, if you get busy building out your online assets now, it will undoubtedly insulate your finances better in the long term (when the inevitable downturn comes to pass).

 

[CCarter]

The question is, how will your internet business fare in the next economic downturn?

I'm certain it will fare quite well. During recessions people need "more bang for their bucks" - so if you are able to provide a better solution and are seen as necessary you are in good shape. If you are selling nonsense like a "tactical flashlight" - then yeah that's something people can do without and you might be in serious trouble.

And what will you do to recession-proof it?

Constantly add-value to the point you are seen to be over-delivering to your customers. Last recession I had more contracts than ever for online marketing - EVER. People needed to squeeze everything they had into the right avenue. If you can show measurable results for your clients/customers - then you aren't the one getting axed.

 

[bernard]

There are recessions and there are black swan catastrophes.

The Balkan war is a recent good example. A complete collapse of a currency is possible too. It took some of the Asian tiger countries two decades to catch up to the same living standards.