Recession Proof Internet Marketing (MUST READ) Protect Yourself!

September 26th, 2011 | 37 comments

recession proof internet marketing The recession of 2008 and the impending “double-dip recession” that we are about to go through have had me so concerned over the past several months that I have been doing ALOT of research during work hours and even after work hours to get to the root of it in order to figure out how I can refocus my Internet Marketing business in order to not only sustain, but benefit from the eminent crises that I strongly believe the U.S. and most of the World is about to endure.

Before I explain how you can “recession proof” your IM business, first I need to provide a brief explanation of the current economic crisis. In 2008, as you know, the U.S. and much of the World suffered from a recession that was caused by the housing bubble, among other things. And although the markets recovered somewhat, any smart economist that isn’t politically biased will tell you that the economy is still broken.

While the market begins correcting itself in some aspects, it is only getting worse in many others. Since most Internet Marketers target the U.S. market and it’s the market I know the most about, I’ll talk about it. As the U.S. Dollar is the World Reserve Currency, the U.S. has the luxury of printing their own money (via the Federal Reserve) when they need it. That is a luxury however, only if done so responsibly.

The problem is that the Federal Reserve (Fed,) which isn’t even “owned” by the government, is NOT responsible and many people believe they are even corrupt, as they have NO transparency and consistently decline audit requests! So here is where the problem is. The U.S. is nearly 15 TRILLION (yes, with a T) dollars in debt and it currently does NOT have enough money to pay its own bills. SO, instead of cutting spending, like a responsible government would do, the Fed just prints more money in order to cover all of the interest the Government owes on all of these bonds (loans.)

That’s great, the U.S. can do that, so why not? I’ll tell you why not! Because the more money it prints, the less value the U.S. Dollar has. And the less value the U.S. Dollar has, the higher inflation goes because oil etc. are based off of the World Reserve Currency. And the higher inflation goes, the higher prices on OIL get. And the higher the price of OIL gets, the more money farmers have to pay to run their business. The more farmers have to pay to run their businesses, the higher they have to charge for milk, eggs, corn and every other food we need to survive.

In a nutshell, that is the problem. The good news is that the problem could easily be fixed, but the bad news in the U.S. doesn’t have people in office who care to fix it! I’ll tell you why. Because in order to fix the problem, big government programs MUST be cut! And if you tell people who are used to being given free handouts that they will no longer get those free handouts, they get mad. When they get mad they DON’T VOTE FOR THOSE PEOPLE and THAT is the root of all of these problems! Politicians who deliberately create a welfare state in order to further their political career, completely ignoring the fact that welfare states historically do not work and even CAUSE recessions.

So, instead of solving the problem, the U.S. has politicians, both democrat and republican, who are going to play politics until they can get out of the spotlight, to save their political careers. The next election will not be held until November of 2012 and I predict, along with many smart economists who are not afraid of the truth, that the current economic troubles are only going to get worse until we get a new government into office in 2012 who will cut spending, reduce regulations and allow the markets to correct themselves (maybe someone who can appeal to both sides like Ron Paul?)

That in itself is going to hurt and it’s going to take time, but it’s the only way out of this mess. To make things worse, the U.S. has HUGE oil reserves in their own Country, but the government (the same government that refuses to cut spending) also refuses to drill into their OWN oil reserves, which if tapped, would buy the U.S LOOOOOTS of time to fix this overall problem while at the same time dropping gas prices to historic lows AND creating thousands of jobs. They won’t do it though, so we need to take care of our families!

So how do you, as an Internet Marketer, protect yourself?

Simple, you get into the right markets! The markets that maintain and even profit from recessions! I wish I could give you a step by step plan, and maybe sometime in the future I will, but for now you simply need to know that:

1. this recession is only going to get worse, the numbers are proof!
2. SOME MARKETS ALWAYS BENEFIT FROM RECESSIONS! So as Internet Marketers we have a huge advantage on other business owners, because we can target any market we want! A local donut shop, for example, can’t just jump right into another market, so we really have an advantage here!

So what markets are either not effected by the recession or even benefit from them? Well, the precious metals market for one, always benefits because you can’t create gold and silver out of thin air like the Fed does the U.S. Dollar, so no matter how bad it gets, Gold and Silver will ALWAYS have value. This is why Gold and Silver prices have skyrocketed over the past few years…because they are sound currencies, while the USD is NOT sound.

Discount business models also benefit because when people are hurting for money, they’re looking for deals. So anything you can do to help people save money is going to do well in a recession. This is why I predict Wal-Mart (for example) will do just fine over the next few years. They may be negatively effected a little, but they will not collapse because their entire model is based on low prices, which always wins in recessions.

The Entertainment markets like video games and even sin markets, although I don’t recommend getting into them, always do well in recessions. I personally see these markets still being somewhat negatively affected, but some businesses in this overall market WILL benefit!

So whatever it is you do in the IM space, whether it’s something in affiliate marketing, blogging, what have you, start looking into these markets and doing your research to find other markets that will benefit from a recession.

Maybe I’m wrong along with hundreds of Millionaire and Billionaire economists, and if we are oh well… you’re still building your business and you’ll still benefit. But if we’re right, YOU will be one of the very few who not only maintain, but gain, while millions of others lose their job, home and more!

I don’t know about you, but I know what I’m focused on right now and if what I strongly believe is true, really is true, this will be the most valuable blog post you read in years, if not your life!

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37 comments

Shaun (1 comments.)
26th September, 2011 at 5:18 pm

So, so true. I got into the gold niche in 2009 and have more EMDs than I know what to do with related to gold, silver, food prices, and such.

My business philosophy is “the people getting rich during a gold rush are the guys selling shovels.”
Emma (1 comments.)
26th September, 2011 at 5:22 pm

Are there any Internet-specific markets you recommend for recession-proof targeting? Certainly ecommerce niches or gateway services, for example?
Josh Spaulding
26th September, 2011 at 5:35 pm

Shaun, I know you’ve known this for a while now. Kudos to you! You’re Internet income is going to skyrocket in the coming years.

Emma, the key is to USE the Intertet to target the markets that are going to advantage. So the markets don’t need to be internet specific. You can make review sites etc. that tap into those markets.
CaymanHost (9 comments.)
26th September, 2011 at 5:46 pm

Interesting post Josh, thanks for letting me know about it.

I realize you have only been able to scratch the surface with the Fed in a blog post but I recommend that if people want to gain a complete understanding of the history of the private central banks who own all governments that they visit this video documentary on Google

http://video.google.com/videoplay?docid=-515319560256183936

This is a huge eye opener for everyone who sees it on countless levels.

I’m afraid that even a new government is unlikely to be able or willing to do much about the Fed. Those who have in the past have invariably been killed after all.

Until the stranglehold of private banking families on the monetary systems of the world can be broken, boom and bust cycles will continue to be engineered by them – this is done by expanding and contracting the money supply at will. If people understood the way debt based banking systems work they would realize that those who own the money supply own pretty much everything and have ultimate power over not only countries and governments but every single individual in the world.

Good to see you doing your bit.

Mo
Ken Somerville
26th September, 2011 at 6:38 pm

Powerful article. Well written. I can tell you’ve written it with passion. These difficult times are an opportunity for some and troublesome for others. As long as you are mindful of those that are going to suffer through hard times while you succeed on-line and do so ethically, the Universe will provide. Remember that the more you give, the more you receive. Your friend in Marketing. Ken Somerville
Josh Spaulding
26th September, 2011 at 6:40 pm

Absolutely true, Ken. Do good unto others and God will do good unto you.
gill (2 comments.)
27th September, 2011 at 10:14 am

Thank you for having the courage to write this post. Most people are afraid to remark about what is obviously going on around us. Ad thatnk you for the very good advice about picking the right recession-proof niches.
George Taylor (1 comments.)
27th September, 2011 at 10:26 am

Very Interesting post… and it makes perfect sense. I’m new to affiliate marketing and I’ve often thought what impact this economy would have to on-line sales. Especially after working so hard to get my first sites up and ranking. I hadnt even really thought about what markets do well when the economy is tanking!
Anthony Wakefield (1 comments.)
27th September, 2011 at 10:31 am

Hey Josh,

Perfect timing mate! I’ve been experiencing a drop off in my electronic / tech niches… and just recently bought a few new domains based around gold and silver.

Great minds think alike!

Anthony.
Sunganani (2 comments.)
27th September, 2011 at 11:05 am

spot on Josh. A list of recession proof business would be nice. I know food it always in, medicine, weddings, earn more money

Just off the top of my head.

Thanks again
Stew Kelly
27th September, 2011 at 11:08 am

Yes Josh, the U.S. and world economies are in the toilet and nobody has the political acumen or will to pull us back from the precipice.
I agree that there are certain things people will want and need, no matter how the economy fares, we need to position ourselves in front of those needs and provide exceptional value to succeed.
Jared
27th September, 2011 at 11:08 am

Well said, Josh. I’d like to add two other great financial decisions. 1 Paying down your debts. And, 2, food storage.
Daniel Deus (2 comments.)
27th September, 2011 at 11:11 am

Josh,

Good on you for calling it as it is, not driven by some twisted B.S. political desire.

* Daniel Deus
Angie Berg (45 comments.)
27th September, 2011 at 11:16 am

It would definitely be interesting to see Ron Paul get in. The US might have half a chance if he did. Too bad the media pretends that he isn’t even in the running.

It’s a good article, Josh, with plain old common sense at the root of it. If people would quit listening to all the talking heads and just use their own, they’d know from their basic math lessons that what’s going on is absolutely ludicrous.

I’m afraid it’s going to get really bad before it gets better. I’m actually hoping that the Lord Jesus returns before it gets too bad. ;~)

In the meantime, I’ll keep using my spare time to create more online real estate and pray the Lord continues to bless my efforts.

All the best to your own continued success.
Blessings,
Angie
joyanna
27th September, 2011 at 11:49 am

Thank you for this post Josh….=)
Stef (54 comments.)
27th September, 2011 at 12:19 pm

Josh, let me add 2 more things when you say:

“Because the more money it prints, the less value the U.S. Dollar has.”
->the less value the USD, the less becomes their depth outside the country, so that’s a startegy that’s killing the ones that borrowed US in good faith
->lots of USD are flooding the market here in Malaysia, which means the locals get stuck with a terrible inflation

The federal reserve is not the US Government, but a private elite that’s causing world wide consequences no matter who runs office in the white house

So what do we do as IM marketers? You tell me: for what I know is to up it quite a bit last few years
Becky Gillaspy (1 comments.)
27th September, 2011 at 12:40 pm

Amen! Thank you for sharing what so many of us living in the U.S. are feeling.

I would add that along with getting into recession-proof niches we must also learn how to communicate for the times.

I have been in the Internet game since 2008 and one thing I have noticed is that in order to keep selling, the way I communicate with my market must keep evolving.

Today’s buyer must have all of their questions answered before they push the “Buy Now” button.

To stay in this game we must get better at communicating the value of our product.

Thanks for a great post Josh!

Becky
Dean (1 comments.)
27th September, 2011 at 12:52 pm

Josh,
Well done on you.
I’m a business owner that operates a factory that is supported by IT; so I’m out there in the front lines in more than 1 way. I can tell you we’re already in a double dip and went back into it last April.
The population at large is just now talking and feeling it.
All in all, this “bunker mentality” of the private sector will continue until there’s some certainty. Certainty would ideally include the balls to be simultaneously correcting the govnmental issues which are huge.
But if and once you have that, this country will and can recover quickly.
VOTE
sean breslin (5 comments.)
27th September, 2011 at 1:27 pm

Josh, some good pointers in this post but lets also hope as well, it doesn’t go all doom and gloom!
Mark V (1 comments.)
27th September, 2011 at 1:27 pm

Thank you Josh for a timely article. I’m not really sure if we ever came out of a recession in the first place. The signs definitely seem to be pointing for another downturn.
For my business, I have moved to the offline businesses, giving them an online presence. The great thing about that is that, so far, all of my clients are from referrals – satisfied clients that tell their business associates. While I am still maintaining my affiliate model, most of my recent efforts have been focused on the offline market. Their particular niches, I believe, are recession proof.

Thanks again for a great article.

Mark
Mark Mason (76 comments.)
27th September, 2011 at 2:03 pm

Darn. I was counting on “change and hope.”
Steve S (2 comments.)
27th September, 2011 at 2:25 pm

Whether we have a double dip recession or not it just makes good sense to be in evergreen niches.

No matter how bad things get people will continue to get divorced, go bankrupt,need credit or credit repair etc.

Even with the real estate bust, while mortgage companies were going under the foreclosure and refinance markets were booming.

So while I hope we don’t see the double dip the old saying that every cloud has a silver lining is still very much true.
John (1 comments.)
27th September, 2011 at 3:20 pm

Spot on Josh. I also follow the signs and times. I just hope that the “powers that be” will allow the internet as a viable form of communication to continue.

We have to be smart about how we prepare for worsening times. The !st thing is to not believe anything the various news medias tell us.

If there was ever a dog and pony show they are it.

I too believe some of the solution lies with men like Ron Paul. However, it falls on us individually to return to Godly standards, otherwise He( God ) can’t do much for us.

Thanks for your helpful insight, Josh.
John
Charles R (4 comments.)
27th September, 2011 at 3:42 pm

Josh,

Great post, I follow the markets and could not agree more. You also left out the housing market. Housing prices are down across most of the US. The answer by the FED is try and lower mortgage rates. The problem is when housing prices are devalued banks will not lend to the amount needed for the first mortgage. Thus many americans can not create the cash that would be saved on a lower interest rate.
As an IM’r we need to take your advice seriously and position ourselves to that model.
Cliff Pasta
27th September, 2011 at 4:40 pm

Words well said Josh!

Plus Steve S (above) has got it right on as well – Evergreen Niches. There are areas in our lives (niches) that we just can’t live without: medicine, food, money, shelter, etc. Those areas will always be in demand.

Just think about where people are going to “cut first” when cash flow suffers. Those are the niches you may want to avoid building sites on in the future.

For example, I have a friend with a swimming pool service business, and customers are dropping like flies causing his income to tank big time. The sale of swimming pool supplies and related swimming pool products are at an all-time low. These are products that people generally spend money on when times are good – and the first to go when the going gets tough.

The content in your article has been in the back of my mind for some time now, but this really puts a brighter light on it – time to “Re-Focus”!

Thanks for the “heads up” Josh!

Cliff
Georg (1 comments.)
27th September, 2011 at 4:41 pm

Thank you for an interesting article and for giving your non-US readers an insiders look at the situation.

My tip for positioning your business for worse times is “Think Global – Act Local”.
Ben Yost (7 comments.)
27th September, 2011 at 5:27 pm

Right on Josh! You are completely right! It’s always good to hear what you think from other people.

I know it has already affected the markets I’m in like Mortgage and Real Estate. Huge pay cut there in the last 6 months.

It’s time to look at recission proof markets- like Underwear. Sorry couldn’t help it. But you are right about changing things up – going forward!
Hemal (2 comments.)
27th September, 2011 at 5:53 pm

Great post, I follow the markets too, and have seen the ridiculous rise in Gold value! Good thing I have stocks in that market
Tony (1 comments.)
27th September, 2011 at 6:36 pm

Hello Josh

It’s great that you and others are looking ahead and are concerned about the future. However, we can learn something from the past too.

Over the past 6000 years of human history, has there ever been a government that has provided lasting peace and security for its subjects?

The Egyptians, a dominant world power around the 14th century BCE were defeated and succeeded by the Assyrians.

The Assyrians were later overthrown and succeeded by the Babylonians who in turn were toppled and replaced by the Medes and the Persians(Medo-Persian dual alliance).

Then the Greeks under Alexander defeated the Medo-Persians and Rome defeated the Greeks.

And now finally, the Anglo-American dual world power.

It is regarding this long succession of human kingdoms or governments that the following words were spoken:

“In the days of those kings, the God of heaven will set up a kingdom that will never be brought to ruin. And the kingdom itself will not be passed on to any other people. It will crush and put an end to all these kingdoms and it itself will stand to times indefinite.” Daniel 2:44

This means that God has purposed to replace all human governments with his own just rulership in the hands of his Son, Jesus Christ.

It is for this very kingdom that you pray when you say the words “Let your kingdom come. Let your will be done on earth as it is in the heavens”.

So God’s kingdom is the incoming world government that will bring lasting peace and security for all lovers of justice. At that time, failing economies will be a distant faded memory.

Imagine a world where God’s will takes place instead of the will of imperfect humans.

So the real solution to the present day world distress is God’s rulership represented by his heavenly kingdom in the hands of his Son, Jesus Christ.

News of this government is the best news for the human family. It is the theme of the Holy Scriptures and the theme of Jesus preaching.

Learning more about his government and its program for the near future is the most important step we can take to secure a future for our families.

While humans have wishes and desires, the True God, Jehovah has both the desire and the power to make this earth a safe home for mankind. And he wants to. In fact he guarantees it.

So take heart! And take action! The best of times are yet ahead. (John 17:3)

Tony Nelson
Brittany
27th September, 2011 at 6:37 pm

Good post Josh. I wish I shared your optimism about politicians being able to solve our problems…this is a global problem and not just a U.S. problem.

That being said even if we voted for someone like Ron Paul there’s only so much he could do as president.

Moreover, all the problems we’re experiencing today didn’t just arise in the last 10 years, a lot of these problems stem from us going off the gold standard; all the deficit spending that started in the 60s; as well as all the entitlement programs.

And don’t even get me started on the trade imbalances worldwide and our banking system (and how ridiculous fractional reserve banking truly is).
Dee
27th September, 2011 at 7:40 pm

I believe the problem started in 1971 when Nixon stop using the gold standard and money became debt

http://economics.about.com/cs/money/a/gold_standard.htm
Leon (3 comments.)
27th September, 2011 at 10:38 pm

Thanks for a very well constructed post Josh.

It would be a better world if our highly paid politicians worked harder to solve these problems rather than expending most of their intelectual energy on keeping themselves in office.

I was berating myself for tackling a very competitive niche in the panic/anxiety field.

Now I believe this niche will become even more relevant.
erim
30th September, 2011 at 8:41 pm

Interesting post, Josh. I would agree with most of it, except the part about the U.S. having “huge” oil reserves. I don’t think anybody how knows the industry really believes that, other than some industry shills.

Oil extraction peaked forty years ago in the U.S. We have billions of barrels, sure. But considering we use 20 odd million a day, that doesn’t amount to much. No amount of drilling offshore, shale, Bakken, etc. is going to dramatically effect our domestic oil production.

Not only that, but the U.S. is an incredibly energy intensive economy. We use about twice the energy per capita as Europe, we’re spread out, car reliant, live in suburbs, etc. That’s going to come back to haunt us in a major way.

The key will be changing that, becoming more energy efficient, and hopefully, driving innovation in energy efficiency technology. But, I totally agree that the current political system is completely broken, and not at all capable of producing sensible policy for the future.

Thanks for this post though, and all the others. The information you share has been of great value to me, as well as many others I’m sure.
Bellaisa (1 comments.)
5th October, 2011 at 4:33 pm

Some interesting points, and I’ve suddenly been inspired with a new niche to go after (I’ve been trying to decide for awhile.) So thanks!
Sara
5th October, 2011 at 5:48 pm

You support Ron Paul – that’s all I need to know! Great post!
sudha (6 comments.)
12th October, 2011 at 5:51 am

Some interesting points, and I’ve suddenly been inspired with a new niche to go after (I’ve been trying to decide for awhile.) So thanks!
Tim Shirley (5 comments.)
18th October, 2011 at 12:05 am

Great post Josh. It gave me a lot think about. Gonna have to start researching recession proof niches. Thanks again for the info!