The advantages of Internet Marketing in a bad economy.
October 15, 2008

Most of the financial news regarding the economy has been pretty dismal over the past few months. Plummeting stocks, failing banks, hundreds of billions of dollars being passed around in the hopes of fixing it all. People are understandably worried about the economy, their jobs, their homes and their credit.
Meanwhile, in the past 3 months my net income has risen 20% even though I've only been working an hour or two per day since my son was born. How is that possible? It's simple: Internet Marketing is very resistant to the economic woes facing other industries. Let's talk about why.
Advertising
Television and radio are kept alive by the ROI (return on investment) of their sponsors, and the commercial web is no different. The advantage of advertising online is that it's far more efficient. When a sponsor puts an ad on a television show or radio program, they can only be vaguely certain of who is watching or listening. Sure the networks provide their own research in demographics and how large their audience is, but much of it is guesswork and impossible to know for sure.
Also, results from TV and radio are very difficult to track. How do you know if the person who just bought your widget was motivated to do so by seeing or hearing your commercial? Again, it's guesswork.
The internet is different. When you place an ad online, you can track exactly how many people saw it, precisely how many people responded (clicked-through) and exactly how much money you earned from it. You can work to refine and improve your ads to improve your ROI as well. It's vastly superior to TV and radio in that regard.
So when it comes time for companies to tighten their belts, it only makes sense that they will focus on the ad medium that has the best ROI.
What does this mean for you, the Internet Marketer? It means that your advertising-driven web sites that use AdSense or other programs will likely remain relatively healthy during hard times. My own AdSense income has not changed much despite the economic troubles, which is no surprise to me. It's also good news for anyone in the search engine optimization business (or related businesses such as pay-per-click), since they, too offer great ROI opportunities.
Selling Information
Another reason that Internet Marketing does well when other sectors are having problems is that people who lose their jobs in those other sectors often turn to the Internet to try and earn a living. When an industry starts having problems, people who lose their jobs in that industry often have a very hard time finding work in the same industry. If they can't find a job, what can they do? Again, many turn to the Internet — the "new economy."
Unfortunately, there are a lot of sharks out there ready to take advantage of these individuals. But for those of us who are honestly offering real opportunities and solutions, we find even more customers during such hard times.
Leveling the Risk
A third reason why Internet Marketing tends to do well even when things look gloomy everywhere else is because the Internet makes it much easier to level your risk. I have customers in 60+ countries. When one country's economy isn't doing so well, another's is flying high, and so I'm less affected. A unique advantage of doing business on the web.
So stay focused on your online business, and remember that you're in a better position to weather the storm than most.
Please leave your thoughts and questions in a comment below.
Comments
88 Responses to “The advantages of Internet Marketing in a bad economy.”















thats true…im totally agree with you..this is a part of the benefits on doing business online.
ABSOLUTELY! This is one of the sole reasons I am doing this. Build it now and it will continue into the future.
Buddy
Hey Jonathan,
Good post - glad to hear business is good!
I couldn't agree more…our industry usually benefits when the rest of the economy is going south.
I venture to guess your income is going to continue to climb in the coming months!
Steve
I also totally agree with you with Adsense earnings. Mine are stable too for the past few months despite the economic woes.
Jon,
Yes, you make some very good points, as always.
Although we earn 95% of our money from our main ecommerce business, which is good, the vast majority of our customers are based in the US, which is bad, even though we do sell internationally (although international shipping is often prohibitively expensive).
So, we are looking for some additional income streams, and digital products and services would seem like the way to go.
And as you say, the tougher the economy, the more people will be looking to IM as a way ot supplement / replace their income, so anybody who can provide these people with valuable tools and information will have a steady stream of customers.
Yes, I agree, It doesn't matter what is going on in the world, being an internet marketer will always be the best business to be in. My income has not been affected either.
Anne-Marie
In fact Internet Marketing may be BETTER because of the economy. A few friends that own businesses have approached my lately for help on building their sites and web presence.
It's like, business is slowing, let me look for other ways to improve business and they come online for more business.
One more thing: We are able to create value simply by copying a digital product - this means that there is a great lever in creating wealth…
Dude - you are right on the money. Also people are believing the "Sky is Falling" head lines in the news. People don't freak out and get started making money online
It's great to hear GOOD news for once isn't it!
I don't think online busines is as clear cut as you say Jonathan, because disposal income is still reducing, so club memberships and more expensive impulse buys are less.
I've just cut my own monthly spending from clubs by $440 today, and my turnover hasn't even changed (yet). Fortunately yours wasn't one f them
and I expain why that was.
More "good news" on my own blog.
But many many thanks for the cheery thoughts!
Certainly the LOA and law of Abundance and Kharma depend on such a view point!
There is a glass and it is (at east) half full, or perhaps better said, "indeed the glass contains stuff, Mordaw"
Peter
Hey Jon;
Appreciate this post. Established internet businesses like yours can and will thrive, even in a down economy.
One thing I see is that a lot of people are turning to start internet businesses for the first time during as a result of the downturn.
What is your advice for someone who is just getting started — especially in an economy like this. I get this question a lot from my readers, and I am curious about your view.
Thanks,
Mark
Hi Jonathan,
Its that same reason that got us involved in IM.
One can never be sure what's going to happen to their full time jobs as the days of a worthy job for life are long gone.
A great post thanks
William
Hey Jon,
I'm glad to hear your business has sustainability.
Another cool advantage of running a successful online business is it's ability to produce income no matter where you are. Assuming that you have a system in place, you could be temporarily living in New Zealand and still provide products and services to your clients in the US.
I wish everyone a successful 4th quarter.
I totally agree with you Jonathan, but too many think the Internet is a magic bullet and don't treat it like a real business. Time is my biggest enemy. I love Internet Marketing, but it's hard to break free of a day job that drains most of my time when I have a family to support. It's coming someday though, the dream is still alive! Thanks for the encouragement!
Hi Jonathan,
Not sure if what you say might be right, as there is right now a panic due to this crises amongst the people. All countries are affected including fast developing nations like China and India.
Regards
Madhan.
Yes i agree, most people are realize that so expensive to go out. Alternatively is internet. In my country, internet users are raise rapidly every year.
I think that the part
"there are a lot of sharks out there ready to take advantage of these individuals"
is very true. Unfortunately I don't have high opinion about "internet marketing" niche. I think there are just too many sharks out there selling "new best thing", "shocking new software" and bla bla bla, which is essentially old stuff repacked in new, well, package.
Also one of the bigger problems for these people is that they spend money for ebook/software and so on and find that there is no magic button for earning money online, and then stop trying, and end up in even worse situation than they were in the first place.
Thanks Jon, at least this posting make my eyes re opened to continue internet marketing business in this bad economy situation.
I hope this crisis not too long
Yes Jon. I have to agree with your points above.
When people are left jobless, it's hard for them to compete in the same market looking for the same types of jobs.
The Internet will become the solution they seek for. And us information marketers should be doing better in terms of sales.
Nice post.
Welly Mulia
Jonathan,
I noticed the same results as our Adsense income is holding stable ground. Let's all hope and pray for a better future.
Following the trends is a beautiful thing. Like selling umbrellas on a rainy day. Only thing better? Making money from not selling a thing…..CPA offers. Once I made my first dollar from not selling a thing….just getting someone to fill out a form, I have been hooked and doing well ever since.
Hi Jon,
I agree. Although I can completely understand how AdSense earnings wouldnt fall much, as folks (and companies / small businesses) are spending money on advertising in an attempt to earn their own return, I would expect to see somewhat of a drop in affiliate earnings, especially on higher ticket items, or monthly billing products.
Apparently, this is not the case, as I haven't seen anything drop yet either. =)
-Shaun
congrats for becoming a father. good analysis of the market and how things work when things dont look good.
Some great points. I think any internet businesses that concentrate on showing people how to save money in their everyday life will do well. Being frugal is trendy again.
I think people will increasingly be shopping online to get better deals and to cut down the costs of driving. This means that shopping portals and cashback sites will flourish to the detriment of high street stores and shopping malls.
One man's bankrupt business liquidation sale is another's opportunity to pick up low-cost stock for resale - happy auction days!
As for the types of online businesses that people will be turning to, the ones that are free to join and run will always be popular especially if they enable you to save money and earn referral income. When money's tight, nobody wants to pay large fees to get into a business opportunity .
Hi John,
I agree that the world is a big playground, but I have found a better one for the moment! It seems the world is in financial stress, but the local business still wants attention, and is willing to pay to get it.
Unlike the past, businesses are only going to people they know and trust in my part of the world ( Long Island, New York ). I have had less calls lately about adding new things, but more calls about fixing old things. That is still carrying quite a bit of income, and perhaps even more than before. You see.. I don't have to sell them anything! They ASK FOR IT! It might be an update to a website, some equipment they want to upgrade or replace, or even the occasional new item, but most are not adding anything new until they know what they have will survive.
I've recently added a free inclusion local directory (human-edited) to {snip} (a local version of my main website {snip}) so Long Island Businesses can get recognized online. It is no doubt helping them, and occasionally me as well. I have added some new clients as a result of the list, which does surprise me based upon what others in my area are seeing. They find the services we offer to be reasonable and of high quality, so they buy! That's a nice twist to a supposed downturn in spending as well. It is nice to stumble upon things now and then.
I guess most of us have not seen what happened in the great depression, and are fearful we could experience it once again. I for one hope to never experience what those people did, but do expect history to repeat itself again. Somehow it always does, no matter how many times we tell the people! We say walk, they run! We say stop, they go! Now I say don't spend any money… let's see how that works
Now.. here's to your success John!
All the Best, Al
Jon,
At the time I was only making a couple hundred bucks a month as a part-time affiliate marketer and I had to figure out a way to turn it into a few thousand a month quickly (before my wife made me go get another J.O.B.). Sometimes the worst of times turn out to be the best of times in the long run.
You got that right! The whole reason I went full time in affiliate marketing 5 years ago was because I got laid off - best thing that ever happened to me!
I am sure you're right Jon. Though I have no personal experience yet. I have been to busy with the "day job" which made me $100,000 last year to spend the time needed to get my IM business really going.
Prosperity to us all!
David
This is one of the reasons I got into IM to begin with. I'd much rather rely on myself for survival than crossing my fingers and praying that my company doesn't lay me off in hard times.
Great post Jon,
A few other side benefits for most Internet Marketers are:
-less gas - no travel time to work when working from home or nearby office
-no dry cleaning and clothing upkeep (for some jobs)
-less overhead than normal businesses
-no ties to one place so you can move to a better town/state if need be
-etc., etc., etc.
I think you get the point. There are the many benefits you mentioned plus ones like this that we tend to overlook.
Thanks!
Van
In bad time people are looking for ways to make that extra money. Working at home on the internet is a way anyone can do for very little cost.
I think this is the best time ever for for internet marketing. There is plenty of abundance to go around. Thank you for your inspiring post, Jon.
I totally agree. Internet Marketing and Internet-based products are much immune to the economy slowdowns. They are affected by these economic slowdown activities but not that much.
A great article !
Thanks
Hi Jonathan,
You have scratched a theme that has always intrigued me for so long. Is the Internet Marketing the economy of the future? If so, how will it grow and function when it grows to 3 billion people trading online? What will the economy in general look like then? will it be recession-proof? Or will it be just a side economy to the brick and mortar economy, just like the stock market and the financial market is? And will the "online" term wear off in the end to be not the Internet economy or online economy, but "the" economy in short?
Right now basically the money generated online comes from the off line world - from the real economy. Will we reach a point when the Internet economy will grow and sustain by itself without input from the outside wold - i.e. from money coming from the off line world; or will it develop itself to create a whole new environment and economic dynamic of its own? These are questions that keep haunting me. I'm not really sure about the outcome. Does anyone know the answer? But definitely the economic downturn in the US or elsewhere for that matter; recessions, depressions and job losses will be events that will speed up and catapult the Internet and Internet Marketing to the center stage! That I definitely and sincerely believe it!
If someone knows the answer to my question, just send me an email at ufituwe@yahoo.fr or you can twitter me at twitter.com/godzilla.
Regards,
Maurice
Yep - Online businesses will continue to grow and grow. You just have to take action, even if you don't know much about it right now. Learn as you go. But nothing happens if you never get started.
I totally agree to Jonathan by my own experience. My income with Adsense is also rising up. I have generated 40% more money during the first half of this October than I had made in July 08 for the same period. I am living in Pakistan. The people are talking about economic crisis. But I am earning more money.
To this day I thought that I am lucky…
However, this post is an eye opener. It seems that every positive minded business is generating good money on the internet at the time of crisis. The economists must analyze the factors for this heavy increase. But I am thankful to the internet and my dear visitors who are making a life for me.
……When an industry starts having problems, people who lose their jobs in that industry often have a very hard time finding work in the same industry. If they can't find a job, what can they do? Again, many turn to the Internet — the "new economy."…..
Jonathan, I think this is a great opportunity for those of us who are making an income online to help those who have lost their jobs, by offering our guidance, experience and knowledge .
I agree that this could be a profitable business, but I am still struggling to make ends meet. I agree that Internet Marketing can be good, If you can afford the software and the have patience. I have yet to make any money online, but I am still trying hard. I am trying to implement article marketing in my stategies and have been posting to free ads on websites like UsFreeAds with no luck, and I am going to try Google Adwords next and I have been creating video's with my camcorder and submitting to websites. I am using TubeMogul.com to submit my video's and have been following Justin's Brookes Website SiteFlipAcademy. I think that might be easier to buy websites that already have traffic and then sell it. This would cut down on the time factor.
Hi, Jon
The plus side about it all for us living on the other side of the world is that as the Dollar gets stronger (against our currencies) the Adsense earnings, which are in USD increase marginally - I got 18% more from the same earnings just because the dollar gained value just before i cashed in my check.
Internet marketing is the best!
I had some fears about the dwindling economy worldwide. If what you are saying is true, there should not be any room for panic. True is that the plummeting of stocks etc will affect consumers not directly but indirectly. Lets hope for the best. Anyway great and inspiring article Jon.
I think your right. Internet Marketing seems to be much more immune to economy slowdowns. Though these economic slowdowns still have an effect but maybe not as much.
great thoughts!
Hi Jonathan,
I also have to agree with you on this one, just because the brick and mortar stores in the country are not doing so well people just assume it's everywhere. When I tell people I work on the internet, and get finished explaining it has nothing to do with porn (everyone assumes that). People get real curious and then start asking a lot of questions.
It still amazes me though the amount of people that say I could never do that. They have all the excuses in the world, and would rather get a part time job at Mickey D's then learn or add on to their current skill set. I make a fairly good income online I'm not pulling 7 figures, but I plan to in the next year. I'm in the process of releasing a new product with my buddy Sterling Valentine, and I can't wait to get it out there, I know it will sell.
I know that no matter what the economy. My list is based on many different countries like yours and when one economy goes south, another goes north.
Take Care,
Bill Clemens
Hey Jonathan,
First, congratulations on your new son!
Is there a bad economy? Troubled times?
I must have missed something because like you, I've been grateful to see an increase in my income. The internet truly is a leveler and allows people like us writing here to help lots of others while making a great income.
The other factor for me is to stop paying attention to the media. That means turning off the television and radio. There's nothing we can do regardless of what is reported and it's always negative (that's what sells) so there's no point in watching. It never uplifts you, only depresses. I literally can see my income drop after watching the news or other related media over the days following.
Expecting the best, helping others, doing what you love, having fun and deciding to always feel good will change your life (and income).
Thanks for the post!
Thanks for the
Jon,
This is good news but what would you say to that new marketer trying to get started on the internet. Their income is not up there yet and they may not be aware of how to do it with adsense and may want to.
I really enjoyed the post though.
As always, great Blog! I think a lot of people are just sitting around waiting for Obama to give us a share of your income, instead of getting off their butts and engaging in other income producing activities like internet marketing.
i definitely agree with you john. i've faced this downturn 2 times in my life. the hardest hit were the workers and employees and at the same time the cost to open brick and mortar biz were so high.
due to this, more and more workers and employees will turn to internet as the entry cost quite minimal.
however, they need the proper direction as there are so fly by night programs and scams in the internet.
more internet education needed to the newbies.
Hey Jon,
I've been receiving your emails for about a year and I own a couple of your products so I obviously like your approach, but I guess I'm either pretty bad at following instructions or inept in my optimization efforts because the results I've gotten thus far are pretty non-existent.
I appreciate your emails so keep sending 'em. May be I'll learn something. Thanks!
Javeton
Thanks a lot John. Iam very happy to received your e mail. There are a lot of information about internet marketing that you sent to many people around the world, especially to me.
Iam a new comer in internet marketing and is still learning more. My residence in East Banten The Republic of Indonesia. I hope that you and your family always in good health.
Many-many thanks. I hope I can learn from you inthe future.
very good article & advice. i have weightloss pr 2 website but no traffic. will u offer me any product which is selling high volumes so visitors come back again to my site . reply
Hi Jonathan,
i agree with you, the power of internet make marketing our product is so easy and cheap. Now i'm focus on internet marketing and enjoy it. no worry about bad economy
Hi Jon,
Your words have given immense comfort to me and as per your suggestion I have decided to stay focused on my online business.
Thanks & Regards,
Raja
What a really great post. This is the way to go in such financially stressful times.
I read somewhere that this is the recession free income. What a really great post. This is the way to go in such financially stressful times.
Hello Jonathan,
As usual your comments are right on target, no frills, just good solid advice. For the past few years when I receive your emails I am eager to open them because I know it's going to be good information. Thanks for the encouragement!
Absolutly true. My adsense earnings are stable too this last months, even growing a little
Spot on, Jon. We were just talking about this. I love being in this business at this time. To know that your job can be gone tomorrow, must be extremely stressful. I don't want to live with that kind of uncertainty. Best of all, one can start a business without the risk of a major capital outlay. I just wish I made the change years ago!
Jonathan you present the big picture. Time for a global renewal for a global economy. Use the internet to review past,present, and future
opportunities.
I never really thought about it, but my personal observations back up your claim. I haven't seen any Internet businesses doing any more poorly because of the economy, and it must be for the reasons you said. Very interesting…
You're spot on about ROI, unfortunately client's have a hard time accepting this. Hopefully clients will start realizing where they can get the most bang for their buck.
Hi Jonathan readers posters blog fans one n'all … the wind and rain is whistling around my window outside brrrrr the feel of an early winter warning … so I notch up the room thermostat one more didget … settle down to do a little researching about how to drive even more traffic to my home business web page …. looks like I made the right decision a few years ago after I quit my day job.
…. My thoughts right now this moment now after reading Jonathan's "The advantages of Internet Marketing in a bad economy" information I have a pleasant warm feeling that I'm in the right place at the right time …. in more ways than one …. lol
All my best to you and your stay at home business
Phillip Skinner
What bad economy. If you keep using SEO and article marketing tips you'll find on this blog you'll keep a steady stream of customers coming to your site. Thanks for another great article john!
The current market conditions have done wonders for my website about gold and silver bullion. Everyone is looking for an alternative to the Real Estate or Stock Market. My traffic has tripled!
Hi Jonathan!
Thanks for the post. You are absolutely right. I truly believe that this is a great time to be involved with online business.
Jon,
It's an inspiration to read your post. It gives hope to all the current and future E-Commerce entrepreneurs out there. Times are tough right now and being optimistic is hard, but your readers can be re-assured that internet marketing and business is the way to go.
Great thoughts Jon! Like you, I have seen no decrease in my internet related income. One of the great things about the Internet.
I must admit the last 2 months have been slow for me but as a general rule internet marketing will continue to thrive. It's to big a market for the wheels to fall off.
Jason
I definitely agree! Online business still works well despite of the economic situation. That's why lots of people are engaged in this kind of business.
Jon, this kind of thinking is exactly what all of us need.
There's opportunity in everything, we just need to open our eyes.
Thanks for this!
I also totally agree with you with Adsense earnings. Mine are stable too for the past few months despite the economic woes.
I agree with you 100%, Jonathan.
The complete lack of tracking from TV and radio will definitely make more advertisers turn to Internet marketing methods since it allows them to know exactly what happens when any money is spent. Hopefully this is the start of SLC becoming a mainstream method and the industry will continue to boom.
In my country it seems one day doesn't pass without you hearing on the news that workers have been laid off and (industrial) companies do their everything to cut down on their expenses.
I have always had the desire to be my own boss, which I guess all successful entrepreneurs have. Obviously, not everyone can do Internet marketing but for those who can the Internet is certainly THE media to be using right now.
You inspired me to write a rather long post about the financial crisis and online marketing on my own blog as well.
Great article and great news for the internet marketing industry! Excellent points especially how the internet is worldwide, therefore, as stated in the article, one economy could be down while another is booming. It is like diversification of one's stock portfolio.
Hello Jonathan…..,
I totally agree with you.Comparing to TV and Radio,internet is different.The internet makes marketing our product is easy and cheap.
Internet marketing is the best.
I agree with you. I am SO glad to be working online and from home. You hear of all kinds of places having problems - GM, Starbucks, etc. - places you wouldn't expect. It's such an uncertain time.
The internet businesses are not totally excluded from feeling the pinch of a down economy, however, for the reasons you have pointed out, you probably won't feel as big of a change.
Also, there is a much lower risk of starting an online business - it doesn't take a huge investment of money. So it is a great option.
The other thought I had is that many people will have lots more free time with the economy in recession (out of work). What better time to start a new hobby that can turn into a full time income.
I used this name because you taught me well Jonathon…
P-C-P Guy
Market and business down times set us up for the good times. But there are always bad times in the market for some industries. Like the future of land line phones and dial up modems. The change seems to be coming faster and faster. At least we can know one thing for sure. The internet will be around as long as we are alive. Marketing on the internet will continue to grow.
Rick
We are actually having a boom in our SEO and marketing services - even in this bad economy.
I think it's the perfect time to for any buisness to become more agressive in their marketing tactics, as competition is harder now.
Investing in good marketing will definitely pay off.
Thanks!
Internet marketing, no matter what state the economy may be in, is always in high demand - if you are offering quality services and really know what you are doing.
I think that even in a bad economic time period, we can still sell our services to advertisers and have a thriving business as a result of it.
It's simple: companies don't want to spend the money for traditional advertising campiagns (radio, TV, etc). So, by offering an effective web advertising / marketing service, they are surely to come to you, even in an economic "crisis".
Marketing in the Internet has quickly become the lifeblood of our business.
With the decline and drop in the real estate market, we have now turned to the power of Internet marketing and advertising to reach a larger-scale audience for our campaigns.
And the good news is that it is actually paying off.
Thanks for the info!
I am the one that new to the internet marketing business. There are many related articles on the web and it always confuse us which one to follow. Some say back link is the new trends, and some say you have to be careful on those back link website. If they have done something wrong to the site, it will also affects your site. Don't know it is true or not. By the way, thanks for all the info above.
Jonathan.
Your three points were bang-on! Great information. But I wonder how the 'bad economy' is affecting e-commerce on the Internet? Does anyone know? I don't really hear of any numbers being thrown around by the media lately. Surely, there must be a trickle-down effect?
Daniel.
In hard times like these people are turning to the internet in droves looking for ways to either supplement their income or replace their existing one. I have personaly noticed a big jump in the number of people I am able to bring in to my company.
Internet marketing is a finest way to increase the network world wide. In this economic gloom online business has much prior to get the access with investors. Today investors prefer online involvement in the business, information are clearly define in business sites.
So much for internet marketing. It's still as tough as ever and now the global currency thing has happened; I have trouble believing its not worse.
The one thing it offers the 99% of us trying to make a living on the internet is: ? A place to go, an interesting distraction, relative anonymity, the feeling of being 'techie', the hope that something will take off.
What the 1% of succesful IM ers do I don't think I'd want to do.
But, hey, I do quite like reading and getting excited and drawn into things, but it's soooo hard on the pocket. It's the same old question "WHAT WORKS?" and what works with as little effort as possible.
That seems to be a specialization and what the sharks are offering in abundance lately.
So the jury is out on whether it will still be the same on the internet with the global crises going on, at least I am.
Unfortunately mishaps occur guess. Jon, you write well and make us feel as though we are in the right place. Truly, although everyday I guess I wonder.
I just need to sort myself out and I find the whole medium highly distracting and yes, I listen, read and buy nearly everything I come across. Rule 1 don't do that.
As far a the 'bad times' go for internet marketing, for 99% of us who haven't made very much, it will be business as usual. Unless we strike the right product, software, insight, ebook, video - its a big job, still. Whats changed? Not a lot.
Could not agree with you more. In addition, nowadays, there are a lot of tools that help you in internet marketing, like twitter, everyone is talking about twitter nowadays…
I am the one that new to the internet marketing business. There are many related articles on the web and it always confuse us which one to follow. Some say back link is the new trends, and some say you have to be careful on those back link website.