Information Marketing Business in A Distressed Economy: 5 Predictions

2008 is coming to an end and by now you probably know that America is in an economic crisis. This was the theme of the 2008 election and questions are still on the mind of the public who want to know just how bad the situation is, if and when it will affect every industry (perhaps even your job) and how it can be repaired. The general consensus is that every industry is at least feeling the recession??™s effects, at least to a degree. This may involve less sales overall, higher expenses, or for some businesses, perhaps dramatic losses.

If you??™re wondering what the long-term affects of this recession will be, you are not alone. One of the most frequently asked questions is what will happen, both in the short-term and long-range future? Let??™s start by reviewing some very likely possibilities.

1.More layoffs will lead to more people looking for income on the Internet.

Layoffs will soon become a reality. Given that finding a new job in this market may take anywhere between 60-90 days(depending on the place and the industry one is in), to generate immediate cash flow, people will try their hand on selling stuff on internet. This will give rise to e-commerce and Portals like Ebay and Craigslist will see a sudden increase in activity. People selling educational information on how to master Ebay or start a business online will see a spike in their business. This could also give rise to an increased production of late night infomercials and demand on airtime. TV channels will profit from this effect too.

2. E-Commerce will continue to increase and so will refunds.

Panicked households will turn to online retail, hoping to get a major discounts. However, they will expect the same policies that the brick and mortar stores offer. This means more refunds will be requested and more disputes may arise. On the plus column, this means more contractors and companies that work with e-commerce companies may either increase their business or at least maintain some stability. Companies like Walmart and Target with strong offline and online are effectively positioned to play the price game.

3.Information producers will struggle with pricing.

Information producers have a difficult enough time setting prices when the economy is flourishing. An economic crisis will probably send them into a panic and cause them to quote wrong prices or under-researched prices. They could raise their prices drastically or lower them beyond practicality, for example a product that is sold for $1997 today can be found in some form or shape for $27 in a few short months.

If you can wait enough you could very well find it for free. In some cases they could be found for free, all in a desperate attempt to keep business going. However, this is a self-limiting practice that will only disrupt the business in the end.

4.Merchants will want more verification.

With an economic recession, expect more fraudulent activity, and thus more security policies put into effect by store merchants. For example, when an online store accepts a credit card payment they may want additional verification. In times past, the CVC Code (the three digit number on the back of your card) was usually enough. In a recession though, every last dollar counts and the merchants can??™t afford any disputed charges.

I personally deal with multiple merchant account providers in my businesses. Most recently I had to charge $5000 to a customer and for that I had to provide all sorts of information to the Risk department of my merchant account’s provisioning bank for approval. Needless to say the Risk department even contacted my customer to validate the transaction. I am yet to get the authorization from the bank to charge the card.


5.With foreclosures increasing more and more people will move into smaller places.

The real estate business is one of the most volatile industries to be in right now, whether you??™re buying, selling or even paying on a home. Experts predict that more people will leave their large homes and move into smaller places. To contain rental expenses, private schools will start to sublease their premises. Public schools will allow more students into existing classes due to consolidation raising due to availability of funds in the county.

This will give rise to even some schools may look into more e-classes due to spacing issues. As we pass through this recession, we will continue to witness wealth distribution and most importantly domination by groups of affluent investors who will practically buy anything for cheap and in bulk.

These are just some of the predictions floating around in my head right now.

Now you may say what this has to do with Information marketing?

When there is more chaos, ambiguity and instability, the need for information will increase. If you have information about a specific topic or a subject matter, now is the time to build a business of it.

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2 thoughts on “Information Marketing Business in A Distressed Economy: 5 Predictions”

  1. Avatar

    Srini, in the coming months there are going to be tough times for some and better time for others. I think this is an ideal time to have a business online. Information marketing is booming now, it will get even bigger, you are so right! I at first was thinking that network marketing might be good right now because so many people are losing jobs and looking for an independent income source. However, so often these companies have very expensive products – product-types which can be obtained much less expensively at retail, such as bath and body products and supplements. Other direct selling companies, such as Longaberger products (home-office in my home town) are, no doubt, in for really tough times. Who will buy $60 baskets when they’re struggling to pay the electric bill? Direct selling companies which provide legal advice and other information products(there it is again) might do OK.

    Whenever we face tough times, we must ask ourselves, “What is the lesson here?” I hope that at least one of the lessons learned is how to live more respectfully of the earth and all of our resources; that we will be conscientious of our use and not so wasteful.

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