Yes, I know it sounds evil to “Profit” during a time when many people suffer. But, I’d rather profit than suffer.
I’m no economic guru. But, I do think we’re headed towards a recession. How bad will it be? Who knows! Anyways… here’s why you can actually profit from a recession.
1. Great offers still convert even during a recession.
Did you know that the Infomercial Business booms during recessions? It’s true.
That’s when advertising rates drop low enough that they can run lots of infomercials profitably.
Here’s an article about this in the Daily Beast.👉👉The Recession’s Infomercial Boom.
2. Advertising costs will drop significantly – even for Digital Marketing.
Facebook Advertising Costs will drop. Youtube Advertising Costs will drop. Google Advertising Costs will drop.
Just look at what happened in the past with Google. They were the “Hot” Advertising Platform during the last recession. And here’s what happened to their revenue:
- Google’s Revenue grew an average of 63% a year – from 2005 to 2008,
- Google’s Revenue grew by only 9% – in 2009 during the recession. That’s when they started using Direct Mail to get more advertisers. Everyone who ran ads got one of their little letters offering you $100 in free Pay-per-Click Advertising.
- Google’s Revenue grew an average of 23% a year – from 2010 to 2013.
- Google’s Revenue grew an average of 22% a year – from 2014 to 2021. It’s insane how much their revenue has continued to grow even after they became such a huge company.
3. The right offers will convert even better during a recession.
I was selling real estate during the last recession. The Real Estate Industry’s revenue dropped by about 60-70% during the recession. At first, my income dropped off a cliff. But, then I started doing short sales and made great money.
Doing short sales was a “Recession Busting” Offer. And, I know several Marketers who made great money during the last recession because they had a “Recession Busting” Offer.
How To Grow Sales During A Recession.
Some companies will boom during a recession. I remember one marketer who grew a $10 Million Company in a few short years during the great recession.
He had the perfect “Recession Busting” Offer and it sold like crazy. Another marketer had a great “Recession Busting” Offer and he made millions in 2008 and 2009. So, here’s how to grow sales during a recession:
1. Roll out a “Recession Busting” Offer.
How to do that is a big conversation. But, basically you offer something tailored to tough economic times. Home builders build cheaper, “starter” homes during a recession. Restaurants rely more on their “Dollar Menu.”
And you figure out a way to position your offer to appeal to someone looking to save money. The good news is that you can often do this and maintain or increase profitability on these new offers.
2. Focus on the basics.
For example, I’m maintaining sales for my biggest client – despite the fact that we’re entering the slow season. For years, their sales always dropped every summer. For example, in the last two years, sales dropped off about 20% from May to June.
And so far (it’s June 24th as I write this) our sales are flat with May’s sales. Is it all me?
No! I’m working with a great team and they’re doing a great job. But I’m responsible for the Facebook Ads, creating new ads, running them, etc. And, it’s working.
Here are the “basics” that we’re doing to grow sales:
- Cycling the offers and ads in and out to keep them fresh.
- Creating fresh, new Ad Copy.
- Spending less money on bad-performing days.
- Constantly tracking what’s working.
- Constantly pushing to increase sales. We’re not resting on our laurels.
So, that’s it for the business talk this month. If you’d like to see how I can help you grow your sales, then contact me for a Free Consultation. Note. Your business must be making more than $500,000 a year in revenue for me to meet with you.