Economic cycles affect the business online especially extreme ones like recessions. With a few well respected contrarian economists are saying that the United States is in a recession (opens in PDF) already we need to be thinking how this may affect us. I expect a decrease in online ad spending as consumers spending decreases.

What sort of sites are recession proof? To answer that one must think about what happens during a recession and why. Consumers buy less durable goods because they don’t have extra money to spend to replace their older goods. This means that more interest in “how to” sites. Also consumers cash strapped will be increasingly look for ways to save money meaning that coupon sites and deal sites should get an added boost. Loans and mortgages also come to mind because the increase in unemployment should cause people ( with ther credit left) to cash in their remaining credit need to maintain their spending. Lastly employment and financial freedom type sites should do well.

The real trick will be to stand out against the established players in theses areas but that is always problem. Is your stable of sites recession proof?

Filed under: Business — Scott @ June 25, 2007 10:50 pm

Comments »