Do Online Business Owners Feel the Recession?
Seriously.. does anyone? Okay, first off, I know that the US economy is not in an official recession by definition; however, when Warren Buffet says it is, and when every economist is debating whether we are or not, I think that we’re in a recession as a pessimist by nature.
I’ve been following the world markets very closely ever since I started playing around in the stock market , and the economic downturn has definitely gotten the best of my investing ventures. When I was reflecting on what to do with my money, I realized that my online business seems relatively unaffected.
So why do online content based businesses seem unaffected?
- Consumers will still consume your free content, and will in turn still see and/or click on ads
- It’s hard to tell whether the recession is affecting a firm’s online advertising budget for your sites, especially when Google brokers the ads through Adsense
- Our increasing inflation has not really increased the consumer price index as a whole yet
For those reasons, it is easy to forget the economy’s poor condition when working in a niche like online business. But the truth is, the average ‘recession proof’ businesses will eventually be hurt with the devaluing dollar. By the end of the year, $1 may only be $.80, and that will definitely hurt your purchasing power and bottom line if your wages don’t increase similarly.
I know this is kind of a rambling, reflective post on the economy, but I am concerned with my past profits and bank account being eaten away by inflation getting up to 5 or 6%. So I end with 2 questions:
Is your online business directly feeling the recession? If so, how?
Do you plan to hedge your business or capital against the deflation of the US dollar at all?
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Nick,
Honestly, I’m not currently feeling it. I felt an advertiser pullback right after Christmas, but as Q2 approaches, I’m seeing good levels of ad spending again.