The Elephant in the Room
April 14, 2008
Marketing Around "The Elephant in the Room"
"Recession"
It’s the elephant in the room — the thing no one wants to really talk about, for fear of being forced to admit it’s real.
… But the fact is, the U.S. economy (and by extension, the global economy) is experiencing a downward spiral right now, and the ripple effects are being felt by everyone from Bill Gates to the smallest home business owner.
However, hiding your head in the sand isn’t going to change things!
You can’t just act like everything is "business as usual" and pretend it isn’t happening.
Many of your customers are going to be forced to tighten their belts. You may find that people are going to be less likely to make a purchase online than they have been in the past. But that doesn’t mean you should close up shop!
The best way to deal with an economic crisis is to FACE IT HEAD ON and look for ways to make it work FOR your online business — instead of against it. By tweaking your sales message to speak to the financial challenges your customers might be facing, you will get a better response out of them.
Here are a few ways you can do this:
1. Emphasize the VALUE of your product — and the amount of money people will save in the long run by buying it. (For example, if you sell dishwashers that are energy efficient, explain how your product will cut down on electricity costs!) Emphasize value on your website… in your newsletter… in your pay-per-click ads — everywhere you reach potential customers. By showing them how your product will help their bank balance rather than harm it, they’ll be far more likely to make a purchase!
2. Offer special discounts and free trials — The best way to appeal to people on a tight budget is to offer them a great deal. And there’s no better deal than free! A great way to convince people of the value of your product is to let them try it out for free for a limited period of time. It’s far more difficult to say "no" to a great product once it’s already in your hands! Also consider offering other perks, such as free shipping or free gift wrap. You could also include more free bonuses with your main product. By offering "added value" items like these, you’ll set yourself apart from your competitors and encourage more people to buy from you.
3. Focus on your existing customer base — The greatest asset of any business is its customers. These are people who have already shown they trust you by buying from you once — which means they’re far more likely to buy from you again. … And THAT means it will cost you less money to convince THEM to buy, compared to someone who’s never even heard of you. Work hard to build a strong relationship with your existing customers. Offer them lots of free valuable information, combined with special "customers only" discounts to encourage them to buy.
Above all, make sure they haven’t forgotten you — and that they always think of you as the person who "sends them all that interesting and useful stuff!"
By staying on their radar, you will guarantee that when they do decide to open their wallets, your site will be the first place they go.
If you’re already feeling the effects of the current economic crunch — or have discovered some successful ways to shield yourself from it — please tell us your story.
We are always looking for ways to help serve you better and your input helps us do this!
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Hi Derek
I decided to take the plunge into the Internet Marketing field only 6 weeks ago, after lazily maintaining some niche content websites for about 3 years. I was content with just receiving some passive Adsense income without looking after any customers or subscribers. I was convinced to use an old I.M. domain name I kept, and joined my first JV Giveaway,
Since I’m pretty fast with a keyboard and experienced in all types of software, I wrote an email to my new JV Giveaway subscribers offering to help anyone that wanted to get started themselves. I even gave them a free gift (that I paid for), as well as help them set it up.
Anyway, a couple weeks later, I sent out a promo email, along with a freebie and information on a new coding trick I learned. A few of the people that I helped, purchased my package. They showed their trust in me, and now as each of us are growing our still small lists, we’ll pool it together for a future JV project.
I learned that creating, continuously building and “helping” your list (no matter how small) from the very beginning, can reap future benefits faster than you think.
Joe Nykoluk
http://www.FiveStarMarketing.net
Hi Derek,
So there is an Elephant in the room?
Having visited India many times over the last half century I asked a turbaned Elephant master what he gave his elephant if it had a touch of Diarrhoea. He replied wisely, “Plenty of room!”
That is about how we should treat talk of a recession.
We have all heard of the hot dog seller that worked hard daily on a busy thoroughfare and was eventually able to send his son to College. The son returned and warned his father that a recession was looming. Father saw that son had an education and a degree so he reduced his order of hot dogs and buns. Sure enough after his stock was gone he did not make as much money. Was the son right? Wrong.
Before talk of recession people eat three meals a day. After talk of recession people still eat three meals a day. Those that used to buy steak and decided to tighten their belts now find the smell of hot dogs appealing. By doubling the order for hot dogs and buns the father and son could trade out of the recession at a profit.
Over the last thirty years in Australia we have had the dollar devalued several times. The day before the dollar was devalued I read in the Bible, “But my God shall supply all your need according to His riches in Glory by Christ Jesus.” Philippians 4:19. The day after the dollar was devalued it still said the same thing! Facts change but truth is constant - this is a valuable lesson to be learned in life.
As Jim Rohn, motivational Guru tells his students, “I can tell you what the next ten years will be like - about the same as the last ten.” “Opportunity mixed with difficulty and sometimes there is more difficulty and sometimes there is more opportunity. It is what you do with it that makes the difference. Day follows night, Spring follows winter and an upturn in the economy will always follow a recession.
It is my considered opinion that interest rates controlling economies are manipulated in the name of Federal Reserve Banks. They are neither Governments nor banks but owners of the world’s wealth in the hands of a select few this has been so since around the 1920’s. This is well documented by various writers such as Willard Cantelon “The day the dollar dies” 1973 Logos Int.
The way out is the way through!
I just started with the marketing and wanted to know what is the best way to start making money thanks rita
Recession or no recession if you know what can make you money in these
times you’ll be well ahead of the crowd.
Derek and his team do a great job of offering valuable tips and products on
making money from building and running online business.
Personally I stopped wasting my time and money or depending on online
internet marketing or affiliate marketing about 2 years ago.
Its too hard, not a dependable source of income and the competition
is getting tougher.
Then there are products and services you should not promote because you
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Its a tough learning curve. And even then its a bigger pain to make it
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Thanks to Peter Allard for such a wise thinking. I have lived through last recession in UK, Australia, India and now in New Zealand and can go through it once again. The only difference is that I used to be in a lousy job before but now I have a physical as well as internet business up and running. The only way to get around is to educate people and show them the smart way to more money. Today internet is the best source for a full time or second income. Time has never been better. Recession or no recession.
I have read the comments above with great interest.
Having lived through several recessions in my lifetime, I can assure you that the one facing North America (and probably most of the industrialized Western World) will be far more severe and protracted than anything experienced since the 1930’s…this is going to be a doozy when it really gets going!
Right now the U.S. is leading the way into it….but soon other countries will follow and the reasons for this are too involved to go into at this writing. However, with that said, I am very grateful to have started into online marketing as a source of income…this “recession-depression” that will take a few years to unfold will offer some truly magnificent opportunities to those who can think “ahead of the curve”!
While reading the “hotdog” analogy posted in this thread, a very important and old saying that is so very true came to mind: “When life throws you lemons…make lemonade!”…and this is the opportunity that is waiting for all of us if we have the “eyes to see and the ears to hear”.
If you find your online business is starting to take a serious hit as the ecomomy turns down….diversify!…Start looking for other things that people will need to stretch their dollars…think in terms of “how can I offer services or products that people will still buy, but that save them money?”….Perhaps a new recipe ebook on 100 different ways to prepare meatloaf might become popular…or a step by step guide on how to change the oil in your car by yourself…I am perhaps being a little frivilous with these suggestions….but I am trying to illustrate a point…
Use this time of uncertainty we are experiencing to offer concrete solutions in areas that are basic to daily life…Home entertainment will become even bigger than it is now as people will opt to stay home and have friends over for diner and a few drinks, rather than going out to a restaurant….there’s a whole industry in itself that is going to explode!
Just think positive, and keep your head while other’s all around you lose theirs…the key to survival is thinking outside of the “box” and diversify!
Hmm….now where did I leave that re-patched inner tube to fix the flat tire on my bike?
Hi Derek,
As a 50-something I can tell you it’s difficult indeed finding a GOOD job on a good day in a good economy; so I am so excited about the upcoming video series. I’m armed with my 2008 Insider Secrets, and BeBiz and lots of positive thinking.
There really isn’t any other site like Marketing Tips that do so much to help all of us to get a viable Internet biz going!
Recession worries are going to hit some people, and some people aren’t even going to feel the hit. There are always ways to sweeten the pot; I think back to all those times I’ve bought online because the sales pitch or the website was so enticing and the offers just too good to ignore! So, I’m thinking, I can do that!
Sure hope you have one last trip in you Derek, to NYC! I will be there, that’s for sure….
Dear sir
what is my job? when it is going to start ?. I have a fear at the end of the month . If ask me to pay how can I. I am not getting proper feed back and step by step approch. I want to start business atonce I want to go without loss. Please don,t say very long statement, I am very ordinery layman can not able to understand .
Thank you and do the needful
sankaran ganeshkumar
Hi Derek,
Tough times can bring out the best in all of us and I appreciate the will power you guys put forth. I’ve found myself creating more new products and concepts for decorative concrete and home improvement do it yourselfers than ever before. In tough times there is ofen unseen opportunities that simply cause us to dig in deeper. Thanks again, Bryan