How to Build Wealth Online Amidst Financial Chaos – The Opportunity of a Lifetime

March 18, 2009 - Written by Gyutae Park  

golden nest eggUnless you’ve been living under a rock for the past couple of years, you know that the world is under a large-scale global recession. Countless companies are scaling back and hundreds of thousands of people have already been laid off from their jobs. It’s scary out there, with no end in sight.

So what are you to do? It seems like the widely followed career path of “going to a good school and getting a stable high-paying job” has come crashing down. No one is safe in this economy and no one can help you – not even the government. There’s only one thing you can rely on right now… and that’s yourself.

There is one bright spot amidst all of this financial chaos. The Internet is still going strong and developing at a rapid pace. Online companies like Google are maintaining healthy profits despite the recession and there’s a huge opportunity for independent webmasters to make a killing with their online businesses.

2008 recessionTake advantage of this opportunity of a lifetime. Rather than waiting for someone to bail you out or hoping things change for the better, take matters into your own hands and build something marketable for yourself now. In a few years, you will reap what you sow.

During the Great Depression, radio and print advertising was still relatively new but thrived as the emerging new medium for business. Small companies back then like Chevrolet and Proctor & Gamble were able to take advantage of this and flourish even in turbulent times. Here’s a hint: history always seems to repeat itself…

What can you do today to innovate and build wealth using the Internet as your platform? Below are my tips for action. Stop whining, start building. The time is now.

5 Steps to Online Success and Wealth During Times of Recession

1. Build your knowledge base – learn something
In the Internet/information age, knowledge is king. The more you know, the more you can do. Find a topic that you’re passionate about and read everything you can about it on your slack time. For example, if you want to be a computer programming whiz, study PHP, MySQL, and all of the other popular coding languages and sharpen your skills. Same goes for anything else (e.g. SEO, investing, basketball analysis, cars, gossip, whatever). Again, the more you know about a specific topic and the better your skills, the more you can do and better market yourself as an expert. This is key for personal branding online and will help you to build connections and establish your business.

2. Build a following and expand your network – establish your reputation
Expanding on my first tip of building your knowledge base, you also need to grow your personal network and establish your reputation in the industry you’re working in. It’s not just what you know, it’s who you know. Having a few key connections can mean the difference between success and failure. Just ask venture capitalist and entrepreneur Guy Kawasaki. His latest project, Alltop, isn’t earth shattering by any means, but he’s been able to significantly grow its userbase by calling in favors and leveraging his huge pool of followers. That’s really all he needed to tip the scales in his favor.

Take a look at my article on how to be a top online marketer in 2009. As the web becomes more social, personal branding will become increasingly important in order to build successful online businesses. Make friends, both online and off, and use social media to establish yourself as an authority in your field. Be active on niche forums, engage in conversation on Twitter, and answer questions on Q&A sites like Yahoo Answers. There has never been such a powerful channel to network and build connections on a mass scale like social media. Use it. It’s one of the biggest advantages you have over bigger, but less mobile corporations.

3. Build an authority website – pump out tools and content
Once you build your knowledge base and your network, coming up with an online business idea should be easy. Based on your passions and your analysis of market needs, develop a website of some sort with a solid business model. Create useful tools and resources and pump out unique content on a regular basis. If you’re strapped for cash, you’ll have to do this all yourself. Otherwise, outsource the content development to other experts and do what you do best (whatever that may be).

I know what it’s like to create content. It can be very draining and difficult, especially in the short term when you can’t see immediate results. However, blogging here on Winning the Web has been an extremely rewarding and profitable experience for me and I recommend it to everyone. Blogging is by far the best launching pad to start off your business. And no, I don’t mean blogging for ads.

4. Build links for traffic and SEO
Links are the currency of the web. They represent relationships, traffic, and improved SEO rankings. There are a ton of creative ways to build links that will lead to long lasting benefits. I won’t go into tactics here, but be sure to read some of my link building articles if you’re interested in learning more.

Link building is a slow, but very profitable Internet marketing practice that leads to long term success. A few quality links today could mean a #1 ranking in Google and loads of free traffic tomorrow. Keep building.

5. Build your brand and market share – buy advertising for cheap
The good thing about building your business during a recession is that you can buy advertising for amazingly low prices. While everyone else is scaling back and cutting their marketing budgets, you should be ramping up and spending everything you can to increase market share and “buy” customers. In fact, with such low demand these days you can pretty much get anything business-related for cheap – including advertising, office space, superstar employees, etc. Now is the time to get in, when everyone else is getting out. Buy ads on Adwords, Facebook, StumbleUpon, blogs, etc. The fact that there’s less competition out there will help you tremendously.

As you can probably tell by now, the theme of this post is “build”. Be proactive and create something valuable for yourself online during the recession. Sure, times may be bleak right now, but when things turn back around (and they will eventually) you’ll have a giant nest egg that will create long term wealth for you for years to come. The Internet is the new medium of business and recession or not, it’s the wave of the future. Build now before it’s too late and you miss the opportunity of a lifetime.

What do you think?

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Posted in Articles, Business Motivation, Internet Marketing, Make Money Online
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Comments

17 Responses to “How to Build Wealth Online Amidst Financial Chaos – The Opportunity of a Lifetime”

Christopher Ross on March 18th, 2009 Subscribed to comments via email

It’s also a great idea to concentrate and dominate niche’s during recessions.

Gyutae Park on March 18th, 2009

Hey Chris,
For sure. Recessions are a great time to invest and expand market share while everyone else is cutting back. Just because it’s a recession doesn’t mean people don’t have needs and want to buy things. Companies with the most aggressive advertising and marketing strategies will win out during times like these.

Christopher Ross on March 18th, 2009 Subscribed to comments via email

It’s funny, I actually find my consulting business does better during recessions than during booms. I think that people hire staff during good times and rely on external (disposable) consultants during downturns.

(Comments wont nest below this level)
Gyutae Park on March 18th, 2009

Great to hear. If your consulting business revolves around Internet business, even better. That’s the industry to be in right now.

 
 
 
 
Kevin Alvarez on March 18th, 2009 Subscribed to comments via email

Great article about the amount of opportunity out there. This is a great time for all entrepreneurs especially those with internet marketing abilities.

Do you realize how easy it is to develop success oriented partnerships right now? There are a lot of small and mid-sized business owners who will read your article and want to implement your advice, but not have a clue how to do it. Telling someone to set up a blog, advertise on Facebook, or to use Twitter may seem easy to me and you, but for the general public, these are intimidating tasks in which they may need help with.

Gyutae Park on March 18th, 2009

Thanks Kevin. I completely agree with you on the fact that most people don’t have a clue about how to set up online businesses and use Internet marketing effectively. Which is why I’m currently developing a membership site to walk them through these “intimidating” tasks. Stay tuned. :)

 
 
Laurence Flynn on March 20th, 2009 Subscribed to comments via email

Recession is good for the net. Lose job = at home = net time = profit. :)

Gyutae Park on March 23rd, 2009

A blessing in disguise maybe…

 
 
Mike Huang on March 20th, 2009

I thought 2008 was the biggest year for bloggers, but because of the recession, it seems like 2009 will in fact be the biggest year for the Internet. :D

Gyutae Park on March 23rd, 2009

The Internet is growing at a rapid pace. I think that in the next 10 years, each year will outdo the previous one. As Mark Twain says, “these are the worst of times and the best of times..”

 
 
JustinSMV on March 21st, 2009

Smart Business Savvy people doesn’t look at a glass half empty but half full, great positive post on reaching out to be successful in a down economy.

Gyutae Park on March 23rd, 2009

There’s always a positive side to everything. In the business world, there’s always a way to profit and make money, no matter the situation. These are the types of people who will be successful.

 
 
Damilik on March 26th, 2009

Link building is a slow and trial by error process. If done correctly, you would be rewarded greatly especially if you are number 1 for a common phrase.

 
convert on March 30th, 2009

Great article. Particularly like #1. Invest in yourself.

 
Jeff Scott on April 16th, 2009 Subscribed to comments via email

Everything comes in cycles. This recession was predicted. There had to be a pull back. The steam had to be let out of the overheating economies.
What you say is good advice. We need to get our heads down and work through it. It will pass, and in the meantime the opportunists among us will be better off when things get improve, as they surely will.

 
Elijah Pangilinan on April 27th, 2009 Subscribed to comments via email

Nice article for families who are affected in this recession. The internet has many use today. It can save one person’s life.

 
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