How To Prosper During The Recession

Yesterday (30/1/08) the U.S. Federal Reserve cut interest rates by another 0.5%. This was the second cut in 9 days making a 1.25% reduction in just over a week. In the UK the Chancellor of the Exchequer has proposed giving the government powers to secretly bail out failing banks. As for the housing market on both side of the pond, the less said the better. It looks like we could be in for a rough ride.

So how can you prosper in the recession. I’m no expert in stocks and shares so I’m not going to suggest a winning strategy on how to invest when things are tough. Instead, let me just point out that there are certain things that people will continue to spend money on. Whilst we may not have spent as much at Christmas last year we are still going to buy our groceries and fill our cars with petrol. As the recession bites people are going to look for ways of improving their lives.

For those of us involved in Internet marketing I think we will see a significant slump in the purchase of high ticket price products. How many people are going to speng $500 on an information product when things are tight? On the other hand affordable subscription products that are capable of generating a good income - now there is a different story.

Two businesses I have worked in may serve to illustrate my point.

When I first realized the potential of the Internet I couldn’t see beyond the dollar signs, so when I found a business with a product at $995 and a commission of $495 I was in like a shot. BIG MISTAKE! The product wasn’t worth $995 and I couldn’t market it with conviction. Even if I had made sales the only way to make $9950 was to find 10 customers who had been as blind as I had. In a recession will people jump in like this? Even if the product is worth the money how many people are going to spend $995 on an information product they haven’t seen. My view may be colored by the fact that having once been bitten I am definitely twice shy but I think a business like this is going to struggle in the coming years.

On the other hand there is Success University. I spent $2 taking a 14 day look at the product and business from the inside. I then had a choice I could get going for $49.95 a month or pay a one off $149.95 (includes first month) to be a premium member and get higher commissions. For less than $2 a day I get 24/7 access to personal development courses, monthly Cd’s and DVDs delivered to my door and become part of an incredibly supportive team.

Now ask yourself this: when things are tight and people are looking for extra income will they spend $995 in one go or $49.95 a month? Even in a recession $2 a day is affordable and when that $2 investment is capable of multiplying itself into a full-time income then in my books this is a no-brainier.

This recession is going to decimate big bonuses for players on the financial markets. It is going to bite hard on mortgages and wages. Whilst the markets tumble this could be the day of the ambitious little guy. Imagine the satisfaction of realizing your financial dreams during a recession!