Who Said Your Online Business is Recession-Proof?


The global economy is becoming more uncertain than ever. Many people are particularly worried about how the threat of a global recession will damage their income potential. As an Internet entrepreneur, you should definitely do the same.

Many marketers have said that blogging is recession proof and Internet marketers don’t have to worry about the threats of a global recession. Although there is some truth to this, their advice can be very misleading and dangerous.

The truth is that changing economic environments is likely to impact any business and Internet businesses are no exception. As you build your online business, you are going to need to consider the different ways an economic recession could impact your business and what you can do to mitigate those risks.

How Will a Changing Economy Affect Your Online Business?

A changing economy can create both challenges and opportunities to your online business model. Understanding these changes will help you decide on the most appropriate business model as you move forward.

One of the problems with a recession is that customers are less likely to open up their wallets. This applies whether you are working with businesses or end consumers. It can also affect every type of monetizing strategy you might use.

Even many Adsense bloggers felt the sting of the recession in 2008. When you are blogging it can be easy to forget that there are real companies on the other end bidding for the keywords you are promoting on your site. They have to bid less when their budget declines.

If you are an affiliate marketer or selling products, you are likely to find that your customers are struggling for cash as well.

This sounds discouraging, right? Well the good news is that some of these problems could actually be opportunities in disguise. Many businesses and customers are looking to improve their spending power. As they are struggling along with smaller budgets, they often move away from purchasing goods and services offline.

Figuring out how to mitigate your risks and maximize the opportunities of a recession can help you drastically improve the profitability of your online business.

Strategies for Recession Proofing Your Blog

There are a variety of things you can do to protect yourself from an uncertain economy. Here are some things that you may want to consider:

1. Be an Expert

One of the challenges you are going to face in any economy is competing with hundreds of thousands of other Internet entrepreneurs. As companies lay people off or cut their hours, I would expect more people would go online to start running their own business. At first glance, it would appear that it becomes significantly more challenging to make a living as the competition grows. However, this isn’t necessarily the case. Many of the new marketers don’t really understand how the business works. You can still do well in this economy if you show that you are one of the entrepreneurs who really knows what you are doing. Create awesome, authoritative content and show your customers that they should listen to you.

2. Choose Your Business Model and Niche Carefully

Deciding what you are going to do for a business model and niche is going to be one of the biggest decisions you end up making as an Internet entrepreneur. What type of product do you really want to promote?

While you are in the Internet profession, you are still promoting products that are often in a different industry. Deciding what kind of industry you want to promote is going to be a huge part of your income. You will likely fare better in a recession if you choose products that do well when the economy is faltering.

According to a post Darren Rowse wrote during the beginning of the recession in 2008, some bloggers watched their Adsense revenues drop considerably, while others doubled their income within a couple of months. This is because some industries expand their businesses while others watch it fall.

Some types of products that you may promote during a recession may include:

  • Guides on making money
  • Money management services
  • Insurance
  • Health care and health products
  • New technology dedicated to cutting costs
  • Essentials such as food and clothing

This is only a partial list and there are obviously many factors you need to consider. However, there are some niches that are likely to suffer considerably during a recession. These include many types of luxuries that people aren’t up for spending a ton of money on, such as pricey jewelry and the latest iPhones. This doesn’t mean that people won’t still purchase these products during a recession, but the number of purchases might wane as people start running lower on cash.

3. Create Your Own Solutions

Relying on advertising may not be the best way to go during a recession. Unless you are promoting a niche that isn’t suffering from the recession or is planning on expanding its online marketing program, your customers may end up cutting their advertising budgets. This could seriously put a damper on your income if you are relying on PPC campaigns.

Affiliate marketing may be a little more recession proof if you can find products that fit into your niche and are going to create a long-term sustainable income. However, you may find that your revenue streams through affiliate products aren’t as dependable either.

Another solution is to think about ways to create additional value for your customers. Instead of relying on someone else’s products or services, you can be the master of your own fate using a simple three-point checklist:

  1. Identify a need no one else is solving.
  2. Create a product or service that solves that need.
  3. Market the heck out of it online.

Entrepreneurs that work in a field that doesn’t have much competition are likely to do a bit better during a recession. Creating an original solution is one of the best ways to reduce your level of competition.

4. Manage Your Costs

Regardless what steps you take to recession proof your online business model, you may have a hard time maintaining the same income levels you had in a booming economy. You may need to take a number of cost cutting measures so you can afford to stay in business.

5. Diversify

The same principles you would apply in the stock market should apply in Internet marketing. You have no way of knowing how the economy may affect your online business. Therefore, you may want to consider branching out into other business models and generate additional revenue streams.

Consider operating a variety of affiliate sites in different niches. If one of them suffers a substantial loss in income, you are likely to still do well from your other sites.

6. Change Your Attitudes with the Tides of Recession

Creating an Internet business can be challenging in any economy, but it can be much tougher in a recession. Regardless of what measures you take, you are likely to find that the recession is going to create a number of challenges for you. Therefore, you are going to want to make sure that you work hard and have realistic expectations as you grow your Internet-based business.



  1. Seriously it isn’t recession proof. People who live based on the adsense income and site owners who look for organic traffic, after this Google panda update, totally up side down. Serious threat to the business and work they do. The search giant shows up the evil side.