Are Your Internet Sales Recession Proof?
So unless you have been living under a rock you would have noticed this whole financial crisis is starting to effect your internet business or even your purchasing decisions as a consumer. If you are in professional services related to internet marketing, direct marketing or search engine optimization I wouldn’t worry I would only expect this area to grow if we go into a recession as advertising budgets for companies tighten they’ll want cost effective value for money solutions.
The biggest impact area I have noticed with my business is the 33% devaluation of the currency which is currently around .66 cents for one USD. At first I thought this was great as sales were coming in on my USD products and I was making great money which helped pay off my expenses. Then I realised I probably have more expenses in USD than dollars earned such as hosting, domain registration, outsourcing project that were not 33% more expensive thanks to the financial crisis and the devaluation of the Australian dollar.
Now I have also noticed my United States sales on my websites have slowed down or stopped completely over the past three weeks which is a sign of the turmoil in the economy at the moment. Obviously the luxury products like the ones I sell are first to go when budgets tighten up as people are more analytical when making their buying decisions. This presents a strong opportunity for internet marketers with strong salesmanship to dramatically increase their sales even in a recession.
In the United States and too a lesser extent in Australia due to the devaluation of the dollar internet based ecommerce sales will likely increase dramatically. The reason being the internet has a reputation for being cheaper and consumers will likely flock online to save money over shopping at retail outlets. The internets reputation for prices givens your online business a huge opportunity too use offline marketing to attract buyers online and make a ton of money in the process.
Some ways of doing this are:
- Direct Marketing
- Personal Selling
- Promotions
- Viral Marketing
- Public Relations
- Press Releases
- News Paper Advertising
If you offering a legitimate benefit and a solution to a need rather than a want your product and e-business could make a killing doing this right now.
Here are some areas likely to be strong during a recession:
- Make Money/Make Money Online niche entry level products due to employee layoffs
- Professional Services in technology, online marketing, search engine marketing and direct marketing
- Debt Consolidation/Credit Repair
- Baby Products
- Discount Wine/Alcoholic Beverages
- Government developments/infrastructure
- Personal Development (entry level)
- Second Hand Goods/Furniture
- Antiques
- Legal Services
- Wellness Industry
- Bars
- Lotto & Gambling
- Marketing/Management Consulting
- Solar and Renewable Energy
Areas that are likely to suffering during a recession:
- Property Sales
- Loan and Insurance underwriting
- Personal Car Sales
- New Furniture Sales
- Home Improvements (besides emergency/necessity improvements)
- Entertainment industry
- Recruitment
- Online Dating
- Cafes and Restaurants
- Hotels and Resorts
- Airlines (although benefiting currently from lower fuel prices)
- Recreation Gambling (Las Vegas etc)
- Mining/Resources
- Wedding related stores
- Gyms
- Car Parks
I’ll add more as I think of them, feeling free to debate them if you like. Recessions seem to be funny as the traditional money industries resources, real estate and finance slow down and you can make money in other areas or by using counter intuitive thinking. I hope everyone is doing okay, more coming soon.
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