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Posts Tagged ‘recession’

Despite a strong fourth quarter of 2008 online personals sites like Match dot com and Yahoo Personals are now starting to feel the pinch of an prolonged Recession. Approximately one year ago online dating sites were described as being in a Recession proof business, however times have changed and the large online dating sites are finally attempting to change with them. There are several reasons why these types of sites are now starting to feel the sting of this economic situation.

One of the reasons it took so long for these sites to catch on was the fact that most online dating sites were still earning revenue from members who signed up for extended memberships. When extended memberships ran out and members did not renew their online dating subscriptions, the revenue that the large matchmaking sites were generating began to drop.

This is a positive development for anyone who is currently debating whether to purchase an online dating membership. Internet personals sites are offering additional incentives than ever before, especially to first time members. Match.com is offering discounted subscriptions and new members can take advantage of Yahoo Personals free trial offer.

Even now as the economy seems to be coming out of the Recession, there are opportunities for savvy online consumers to shop smart and benefit whether it comes in the form of a free online dating site membership or some other form. Despite what some internet dating review sites said earlier in the year, even the romance business has not been unaffected by our most recent Recession. There are still opportunities for good deals and now is the time to take advantage of the ones you find. It is up to the consumer to take the bull by the horns and reap the benefits that this current economic situation has provided. How long these deals will last is uncertain.

Many people who are interested in starting a home-based business assume that because the country is in a major recession right now, this is not the time; however, I ask you to consider the facts:

1. For most of the important decisions in life, e.g., starting a business, getting married, having your first child – there is never a “perfect” time.

2. If you want to get rich, you need to own your own business, as 93% of the already wealthy do.

3. In 2006, Fortune magazine called direct selling, including network marketing, “the best kept secret in the business world” with a 91% growth over the previous 10 years. It has a market of $30 billion in the United States and $100 billion worldwide. By 2012, that figure is expected to reach 6 billion.

4. Financial experts call it a “recession proof” industry.

5. Warren Buffet called his purchase of a network marketing company the best investment he’d ever made.

6. Tom Peters, author of In Search of Excellence, called it the first truly revolutionary marketing shift in the past 50 years.

7. Home-based businesses don’t feel as much impact from the high costs of gas, parking and children’s daycare.

8. Owning a home business provides significant tax advantages.

9. They’re generally easy to start – if you have a basic language skills and can point, click and follow directions, you have what you need to become successful in the world of online businesses.

10. The internet puts you in control; no more hoping your boss will give you a raise or promotion, no more hoping you won’t be included in the next round of job cuts – plus, the upside is incredible! There’s the potential to grow wealthy.

Affiliate marketing programs are probably the easiest paths to launch an online firm, and most of them also include coaching per the product that you’ll be selling for them.

The problem with the majority of online opportunities is that their coaching is limited, and generally centered only on educating you about their product (s). Sadly, you will need more information than that.

One superb place to start for picking up all the rest of the knowledge about internet marketing that you’ll need is to enroll in the Online Success for Beginners program.

Regardless of the recession, business continues – hundreds of thousands of businesses will launch within the next 12 months. Is this the right time for you to join them? Aren’t you ready to leave the 9-5 rat race behind you?

Carpe Diem! Don’t let opportunity pass you by; seize the day! This is the time to start an online business .

Threats to Your Retirement Income

If you’re part of the Baby Boomer Generation, you’re likely giving serious thought to retiring – if you haven’t already retired.  And if you have previously left the 9-5 rat race, you may be wondering when you’re financially able to stay comfortably retired.

Present economic crisis complicates the situation greatly by increasing the following retirement related economic variables:

1. Average Life Expectancy Is Longer

People are living longer than their parents’ generation. For example, in 1970, a 60-year old Caucasian male would have had a life expectancy of only 16.2 years; but, by 2008, his life expectancy had expanded to twenty years.

So how is the senior going be able to afford to pay for those additional 3.8 years? Following are several realistic responses:

> Add to pre-retirement nest egg building

> Work longer than desired

> Live with with family members

> Accept quality of life

2. Spiraling Health Care Costs

Adequately funding one’s health care coverage are some of the most difficult financial planning tasks, largely because requirements are so person-specific, with requirements varying substantially from one person to another. Long-term care requirements are even harder to predict and arrange adequate funding.

Health care expenses have risen faster than 5% (inflation adjusted) for the past 15 years – and that is greater than the growth in family income. Medicare costs will probably rise as well at a comparable rate.

3. Government Actions May Limit Retirement Income & Supplemental Programs

It is well known that the expenses associated with the major social programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other parts of the economy, and some economists challenge the long-term feasibility of these programs because of the combined effects of increased longevity, size of the Boomer population, and increasing health care costs in general.

Further, current questions concerning ongoing health insurance during retirement, and at what financial levels, are rampant in today’s depressed economy – and these questions are further fueled by auto industry, and other, corporate reorganizations.

There is currently a lot of conversation concerning a national health care system – but such conversations have been active for decades, with few benefits to show for those efforts. Although President Obama will be leading a national health initiative this year, most people expect a lot of opposition from Congress.

Many believe that people over age 55 will be protected from cuts in these social programs, but providing complete coverage for them is a two-edged sword – doing so increases the probability of a new tax, which would likely add to retirement tax burdens.

4. Retirement Dates Are Frequently not Freely Chosen

According to a 2004 Health and Retirement Survey (HRS), 37% of seniors are forced to retire. This can occur due to feeble health or recessions, etc.

5. 401Ks Have Been Decimated

Were your savings (including your 401k) devastated with the stock market crash last year? My investments were deeply affected. Many comedians now refer to 401Ks as 201Ks because of the drop in the stock market. For many people, their 401k was the bulk of their retirement savings, so this stock market meltdown substantially damaged their retirement plans.

Humpty Dumpty Was No Financial Planner

But, the news is not all bad. You can fix a broken “nest egg”.

You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc.

If you’d like to start an online business, but are hesitant because you’re not an internet expert, a very good starting point for obtaining all the knowledge about internet marketing that you will need to be successful is to enroll in the Online Success for Beginners course.

A study by Butrica, Smith and Steuerle (2006) noted that working just one (1) extra year can raise annual retirement income by 9%, while working just five (5) extra years results in an extra 56% annual retirement income.

If you’d like to learn how to produce a supplemental income, so that you can have a rewarding, financially secure retirement, check out Darren Salkeld’s new MaxPro Marketing System and get his FREE Report and FREE Audio describing the age-old secrets of creating wealth.

When Will This Credit Crisis Ease?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. Already we hear stories of the bankers going back to their bonus culture, will they never learn? In a way a more important question is why is our Government allowing them to get away with it? What our great country needs is a strong hand at the top, a person who can be a “real leader”.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. With a stronger leadership this would no doubt change but while the Labour cronies continue to bicker and squabble what chance have we got? Bring in Vince Cable I say as the new Labour leader!

Nation’s Economy – Greatly Affecting Small Businesses

As this nation remains in one of the most difficult economic recessions in the past {fifty years, there are many industries that are adversely affected, but go unnoticed~A large quantity of industries and local businesses are struggling indirectly because of this nation’s economic recession~The largest recession that U.S. residents and companies have seen in the past sixty years continues to indirectly affect many small businesses}.  The housing market and stock market have been some of the most talked about issues, while the banking and loan business trails a tight second.  Many major U.S. owned businesses, that employ millions of Americans, are also being affected by the recent collapse in these huge industries.

On of the most affected areas of the nation is Phoenix, AZ, which experts will agree has suffered huge losses in home values.  Financial assistance applicants are quickly finding out that their home is valued at 20 to 40% less than what it was just 24 months before.  Lack of home equity has caused some residents to just vacate their homes, in fact, bank repossessions are higher than they have ever been. 

For those owners who are not affected by unemployment, housing market decline, and stock market woes – they can quickly find out they are incorrect.  When most homeowners desire to make enhancements to their properties, they may need financing or some sort of financial assistance.  Home improvement loans of this type can generally be obtained through relationships with your local credit union, banker, or credit agency.  As of lately, most prospecting buyers have not had these loan programs available for many home improvements, swimming pools, or landscape projects.

One of the largest businesses hit in Phoenix has been the pool and spa construction business, who mainly relies on financing and home improvement loans for new pools.  Without the aid of financing, these buyers are either unable to purchase a pool, or end up buying a much smaller, less-expensive pool.  Phoenix pool builders have taken a huge hit, often closing their doors, down-sizing, or diversifying into other venues.  Many pool companies have expanded into other venues such as pool remodeling, general construction, and even landscaping.  Some general contracting companies and home remodelers have switched entire industries, trying their hand at completely un-related fields of work.  Many Arizona Landscaping Contractors are expanding into building of hardscapes, such as Phoenix outdoor kitchens, barbeques, fireplaces, and paver patios.

One pool and landscaping Phoenix builder, Unique Landscapes and Custom Pools, has figured out the technique of offering many varying services to potential clients years ago.  Unique is able to offer its customers many different options and services in the home improvement industry because of it’s diversity as a Phoenix pool company, general contractor, and landscaping contractor.  By offering many different venues of our swimming pools and landscape services to our clients, we’ve been able to keep busy during these rough times – simply by diversification.  However, the major challenges have been the simple fact that these financing programs are simply not available to the average clients.”

“It’s tough to think about all the money that was given to banks just a few months ago for these loans, and now it’s difficult for our clients, who want to spend money, to get this aid” remarks business owner Chris Griffin, of Unique Landscapes and Custom Pools in Mesa, AZ.  It would be great for the economists to offer a little advice for the struggling construction companies, who are also suffering in this recession.  “I don’t see the light at the end of the tunnel yet, but I can tell it’s there….” claims Griffin, “Pool financing Phoenix is getting a little better”.

I have read various reports in recent days stating that we may well be through the worst of this current recession. Over the last couple of weeks I have been asking my business contacts whether they have started to see any of those green shoots, the famous starting sign of a recovery. Here is what they said:

Out of all of the people that I asked or surveyed for want of a better word only fifteen percent stated that they had seen the first signs that things were starting to improve. I would have preferred it if this percentage had been some what higher. I personally do think that things are starting to slowly improve, with slow being the operative word. This recession has cut quite deep and any wound this deep can not heal overnight.

More surprising and perhaps worrying is the fact that sixty percent of those people interviewed thought that the economic situation had become even more severe over the last three months and that their businesses were finding it increasingly tough.

I am by no means an expert in the field of the economy however I do have a number of business interests including ones where people are able to obtain cheap calls and also with a group of cost reduction consultants. My main expertise however is with helping people to overcome their stuttering speech impediments.

So when can we expect the recovery to really start in earnest? Well this answer is, of course, very difficult to answer and calling the bottom of the market can only ever be guess work. I will however give my opinion, for what it’s worth. I personally think that 2009 will continue to be a tough year, that in 2010 we will start to see that all important recovery and that in 2011 we will see some very strong growth.

The above opinion is given due to what we already know, if there is a lot more bad news out there of which we have not yet been told of then this opinion will no doubt have to be reviewed.

When will this recession be over?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. I am already started to read reports about the ways in which these bankers have returned to their greedy bonus culture? In a way a more important question is why is our Government allowing them to get away with it? There is a real lack of leadership at the moment and it is about time somebody at the top started to crack the whip.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. I may well revise my opinion if we were to change in Government or a new stronger, dynamic leader? Bring in Vince Cable I say as the new Labour leader!

The current climate is causing a real shift in how consumers use the internet. During the boom years of the past decade, we saw a huge number of small startup businesses trying to compete with the big boys. And many of them have been amazing success stories, particularly online. Before the recession web users searched out the best price for the products they wanted, now they look for the best brands that will still be there when they need them if something goes wrong. Things have changed however and hundreds of website companies are going under, the fall out of which is a growing lack of customer confidence. What this means is that people are going back to preferring known and recognisable brands, even if it means spending a little more.

Yet at the same time job insecurity and redundancy are causing more and more people to consider starting up their own business and becoming self-employed. With around 98,000 new business being created every three months, the competition isn’t getting any smaller. It is by no means the easy option. Around the same number of businesses failed during that period too!

I believe that most new online business fails due to bad branding. Your logo and identity is the first impression customers have of you. It’s crucial to what people use to judge whether you are trustworthy or not. But it’s so often the case that startup owners put off paying professional logo design in the initial stages. All to often its “Lets see how many customers we can get before we think about branding”.  In the meantime they try and do it themselves, or get an amateur “designer” friend to design a logo. Lots of companies merely go for free options such as clipart and templated designs that look cheap and unremarkable.

Brands shouldn’t underestimate the importance of their image. You need to look like a professional organisation that’s in it for the long haul.In times when people are worrying about each and every penny they spend, a brand needs to appear stable and constant. Very small businesses need to look like a much bigger business, its possible. So, these days online customers are looking back to the bigger brands or at least who they deem to be the big brands. Ultimately, a brand that consumers thinks of as credible and dependable will be the brands that they will recommend to family and friends and so on.

The bottom line is this. About 50% of all new start-ups are forced into bankruptcy within only a few years. Experts agree that one of the main reasons for failure is poorly thought out  and shoddy marketing. A custom logo design helps you create the right image for this marketing to succeed. So do yourself a favour – start looking at some sample logos in your industry and see what the successful ones have in common.Finding yourself a talented graphic designer is key to your business, not only surviving but thriving in this current climate.

Have you recently been downsized?

And since then, have you discovered how extremely difficult it is to find a new job in this recessionary economy?

Current Situation

If so, you’re in good company.  December 2007 marks the official beginning of this recession, and since then, more than 5.7 million jobs disappeared during this recession.  According to the Associated Press (AP), after the May 8th release of the April, 2009 unemployment numbers:

• 13.7 million people were unemployed in April, 2009, and that was the largest number since 1948
• 539,000 jobs were lost in April alone
• 8.9% unemployment (the highest since September, 1983), but if workers who’ve been laid off and just given up or taken part-time work, are included, that number jumps to 15.8% – the highest since 1994

If you’ve been unemployed for more than a month, you may be feeling frustrated, angry, depressed, or maybe even a little panicky as you watch the pages of the calendar turn, with still no job on the horizon.This is not just a short-term issue, there are long-term considerations as well (e.g., retirement, college for your kids).

There are basically three options in this situation:

1. Panic
2. Keep doing what you’ve been doing (the same things that haven’t yet found you a new job), or
3. Try something different

Option 1:  Panic

The first option, panic, is entirely counter-productive, and should be avoided at all costs.A little fear, while uncomfortable, can be an excellent motivator – one that can help us get ourselves out of a dangerous situation by either running or energizing us to stay and fight.Panic, unlike fear, debilitates us and degrades our ability to respond to the crises we face.

Option 2:  Continue Doing What You’ve Been Doing

If doing what you have been doing had been successful for you, you wouldn’t be reading this article right now. If you keep doing what you’ve been doing, you can only expect to get more of the same.

I don’t know about you and your industry, but people in my industry – good people – have been unemployed for more than six months, unable to find a comparable job to the one they left; or even, any job at all.  After diligently answering help wanted ads and sending out countless resumes, what results have they realized?  Zilch, nada.

Even when people find jobs to appy for, they’re not getting callbacks in this economy, let alone hired.

Option 3:  Try Something Different

The third option – do something different – seems to be the only plausible solution.  With so many possibilities, how do you even know where to begin?

Do something different: start an online business .

• Never worry about being downsized again.
• Stop letting your job steal quality time from your family.

How would you like to be your own boss for a change!  Begin working for yourself – start your own business!

Home-based businesses account for approximately $427 billion annually and provides many tax benefits, more control over your time, your work, and your income.  Essentially you’d apply the Law of Large Numbers to your individual situation, similar to the way that insurance companies apply that law to minimize their risks.Insurers mitigate their risk of loss by spreading that risk across thousands, or even millions, of customers.

Starting an online business will let you reach thousands, and millions, of prospects allowing you to spread your recessionary risks across multiple people, regions and countries.To increase your financial security, and income stability, apply the Law of Large Numbers to your personal situation.while building a quality life

It’s one of the indicators of a ‘proper’ recession when the general public starts to rethink strongly held views on what they once ‘couldn’t live without’. Research conduced by Pew Research Center of a large number of US residents asked what household appliances and everyday items were being considered a lower priority as a result of the credit crunch. They asked the question “which of these are pretty much a necessity and which are pretty much a luxury you could live without?” regarding a number of household appliances and gadgets. The list ranged from cars to air conditioners to microwaves to cell phones.The results, perhaps shocking to some, show how more and more of us are becoming increasingly frugal with our purchasing decisions on ‘big ticket’ household appliances and electronics.  Owning a microwave became a luxury for 21 percent of people compared with 2006. Having a home or portable air conditioner stopped becoming a luxury for 16 percent of people asked compared to a few years ago. And perhaps most surprisingly of all, owning a TV set dropped 12 percentage points in the public’s estimation of what constitutes a must-have item.  It was technological gizmos such as cellphones, high speed internet connections and flat screen TVs that were the ones not to take a hit in the rankings, suggesting that these have become the new necessities of our time.

To be honest many of the results don’t surprise me all that much.You only have to ask around to friends and family to see that frugality is becoming key as we live in fear of rising prices, reduncancies and difficulties in obtaining credit. It seems like most people’s attitude is “only buy what you absolutely need”. Having a ceiling fan instead of air conditioning during the hot summer we have coming ahead. Sticking with the bedroom furniture or fridge freezer you’ve been promising to replace for one more year. Not driving your car as much to cut back on fuel costs and mechanic bills. In my opinion these kinds of things aren’t going to make a big difference to our overall quality of life. The worry playing on my and many other people’s minds, however, is that things will get a lot worse, and it won’t be something we can budget our way out of.  Maybe at that point people will start to think about all the billions we pay in taxes that gets spent on war, bank buyouts and corporate kickbacks, and start to demand some real change in our society.