Global Recession: Is it Hurting?
Every morning when I wake up, I see that the market is down by 5% to 10% from its yesterday’s level. News only talks about banks writing-off their loans as losses. Companies going bust. People loosing confidence in the system. Panic selling setting in. Stock prices falling like 50% a day.
But is this all hurting me and you? Let me tell you about me and then you can tell about yourself.
Well in one way, yes, it is hurting me. I am a high risk personal and have at-least 70% of my net-worth invested into the equity market. Seeing the market going down everyday is really hurting.
But this post is not about the equity market. This post is whether the economic recession (if I can start calling it that) is hurting my earnings from the advertising networks and advertisers. Is it hurting my online business.
Well the answer is NO.
Lets analyse.
First of all lets talk about the traffic. My overall traffic is steadily increasing due to my “do marketing all the time and never stop” strategy and creating more and more sites. So, no problem in there. People have not stopped using internet in this bad times. I agree that traffic on some of my financial sites has decreased a bit (like loans) but on others it has increased (like foreclosures) as well. So overall no drop in traffic.
Now talking about the earnings. There are two different stands companies take in the time of fear and recession. Some companies reduce their marketing and advertising budget, while other (and I call them good companies) boost up their marketing and advertising budgets in such times to gain more customers.
So, overall I am not seeing any reduction in the earnings from various advertising networks like Google, Kontera, Casale Media etc. Yes, I am seeing some reduction in my affiliates and drop shipping sales related sites. But even this reduction is not very big and these type of sites only constitutes about 15% of my portfolios of sites.
So overall, I am getting around same number of dollars each month. Earnings in August and September have stayed around same. In October I am expecting it to be little bit on higher side due to some good addition of sites in my portfolio.
But all this talk was in dollar terms. When I see it in INR (Indian Rupees, my currency) terms, it is much better for me. Few months back the rupee was at “Rs. 38.00 per dollar”, which is now at “Rs. 49.78 per dollar” (as per latest Adsense payment conversion). So the same $60,000 which used to make me around Rs. 2,280,000 few months back now makes me Rs. 2,986,800. That is a huge 31% increase.
So, am I loving this recession? Well, no. Because equity erosion in my personal equity portfolio is much bigger than these increase in earnings. But I am still bullish.
By the way, how are you doing in these bad economy times? How is your currency doing? Are you feeling the pinch of the recession?
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Jim Karter on October 30th 2008 in Advertising Networks, Business, Earning Money
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12 Responses to “Global Recession: Is it Hurting?”
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mistah fab responded on 31 Oct 2008 at 12:52 am #
Hey Jim! glad to see that you’re back and i hope you stay true to your promise to blog more often. This is a well written article, i know you didn’t write it so much props for hiring a great writer.
chicago web design blog responded on 31 Oct 2008 at 1:01 am #
Well, the recession is just starting so don’t celebrate too soon!
Jim Karter responded on 31 Oct 2008 at 2:27 am #
mistah fab, and why do you think I didn’t write it? I wrote it myself.
chicago web design blog, yes the recession is starting even if it goes 30% down from here, still we are not that badly hurt..right?
AllofInterest responded on 31 Oct 2008 at 8:33 am #
I definitely agree to what you said Jim!
I have seen more traffic to my site in past 1 month compared to what it was before nad I got more clicks so my monthly income from google has increased then wat it was last month.
The only problem I face is, as I opt for Google Standard Check delivery, I rarely receive it. Re-issue again and again, Still its not reaching to my city in India
Bujes responded on 31 Oct 2008 at 12:15 pm #
I have no problems with global recession. I have no money in stocks, my traffic is growing and ratio between euro and dollar is getting better for me.
Jim Karter responded on 01 Nov 2008 at 4:54 am #
AllofInterest, I am surprised to hear about the check delays… I also do the regular check delivery but have never got any problems in last 4 years. But ya, I live in bigger city Pune.
Bujes, thats good for you.
Best of luck.
Driveway Sealing responded on 01 Nov 2008 at 3:03 pm #
No problems for me yet, I don’t think full force of the recession will hit until the new year.
A recession just forces us to work hard to keep the same income levels. I’ve never had a problem putting in the work.
Make Affiliate Money responded on 01 Nov 2008 at 3:58 pm #
It is hurting, but you are right, the currency changes do benefit those of us not in the US.
UK Pound has gone from 2USD to 1.65USD in the last 6 months.
Diversification is the key to success as you said, some niches increase in traffic when others decrease.
JZ
Mounted Rubber Stamps responded on 03 Nov 2008 at 1:11 pm #
I’m seeing a big decline in my ebay earnings - it’s been way down in October as people are buying a lot less items.
mistah fab responded on 04 Nov 2008 at 12:27 am #
isnt it better for you Jim because you are earning dollars and the rupee is plumetting?
Money While You Sleep responded on 04 Nov 2008 at 10:06 pm #
I wrote something recently about the fact that it is very often possible to make money regardless of the overall trend… but you have to be in the right place at the right time and able to be flexible. Whether things are going up or down, whether people are getting in or out, there is movement. And wherever there is movement, there is potential profit. I think it’s mostly a case of being adaptable and prepared to observe and move with trends, and let go of things that are falling.
Jim Karter responded on 05 Nov 2008 at 2:08 am #
“you have to be in the right place at the right time” — well said.
I totally agree.