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Is online business affected by recession?

I wonder what happened to my online business. I am advertising in adwords, im on the top 4 which isn't bad at all. I get many clicks but no sales not even inquiries. Is it because of recession or the online business just became congested?

Public Comments

  1. No, of course not. The internet is a completely different world to earth. It is not effected by anything.
  2. yes and yes
  3. Yes. When people are out of work, they try to find other or additional means of income. That means more competition, and less sales.
  4. Yes, online business IS affected by recession (of course) -- especially if you're selling luxury items, or luxurious versions of necessities, rather than true necessities. But unless you're firmly in the luxury market, and have continued all previous sales efforts, the recession does NOT mean that you should assume your sales are bad because of it. There are always buyers, if you can sell to them. Find out why people aren't buying. Use hotspot analysis and site statistics with other tools, read up on the recession and buying patterns and competitors in your market, and re-evaluate what your competitors are doing now, etc. If you want to survive, work to survive. You may need to give people better deals too.
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