Thoughts, information and reflections about technology

Online income in today’s economy

I tend to over-analyze things and sometime look too much at the pessimistic side of things (resulting in a lot of rice after y2k along with a lifetime supply of other stuff). Of course, Y2K proved to be pretty much of  a non event.

Anyway, the unemployment numbers look really bleak. After a bit I started to think that might not have the impact I originally thought it did. I had not thought through the issue of unemployment benefits.

Here is my hypothesis.

1. Pay per click and CPM ads might still be strong because companies are trying to bring in whatever business they can and haven’t totally slashed ad spending (in a semi related real world example, I noticed that our local food store was doing a lot of “Buy 2 to get a special price”. My guess is that they were trying to increase overall sales)

2. High end luxury items will be affected depending on the demographics of the main customers and the real nature of the item. For example, someone who is selling high end custom wheels and rims may be experiencing a downturn while someone selling high end audio equipment is doing Ok. It will all depend on the individual marketing and the stregnth of the site.

3. Ecommerce sites selling lower end common items or even botique items may do OK. If someone needs their hair conditioner, they will probably still be able to afford it.

4. Pay per click such as adsense may do OK. More people will be sitting home with high speed internet. As long as there is an adequate inventory of ads, they will come and click. Whether those clicks are productive for the advertiser will remain to be seen.

So, don’t give up with online earnings. It takes a while and a lot of expertise to get a site to a point where it is commercially viable so people shouldn’t think that online income is a subsitute for their lost job. Instead, it may be a time of some opportunity for those who have established sites and the expertise to make them tick.

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