Morning Folks!!
It was 1997 when I started making my annual July 4th posts. Some have been public, most have been private. One of the times of the year to pause, take notice of where you are where you are going and why you are going there. They are always upbeat looking to a bright future. There is still a bright future with domains and in domaining. If not for realizing I/We have the best investments in the world. The most portable investments, the most lucrative and the most universally expandable, then I would be pretty nervous about the future and my friends, there is a LOT to be nervous about. More than at anytime in my life and even years before that. We are entering uncharted territory both economically and politically. A huge bust is coming if we stay on this path. Of course, all the 'Experts' will be surprised. Seems they are always chasing the train that already left the station. Always a few steps behind. Keep in mind, we have yet to feel the impact and pain for those that have lost their jobs. This will begin to manifest itself now that unemployment benefits and savings are running out for those that got laid off early on and are still not employed. We are about to see what happens when a city or a region hits 15%, 20%, 25%. How desperation manifests itself where it affects the lives of others.
If you think I have been exaggerating about the state of the economy, the state of the industry and the future of both, let me take the time to tell you that it is you that is underestimating what is happening and what is to come. It is you that will be surprised and unprepared. It will be you that will be scrambling while those that prepare are sucking up opportunity. Because that is what my posts are about. Opportunity! But if you are not in a position to take advantage of opportunity, you will watch it pass by. If you are in denial about the pitfalls, you will surely be a victim of them.
There are major shifts in strategy going on throughout the industry. Don’t think so? Then we are watching a different movie. Weak domainers are getting weaker. Strong domainers are smart enough to see what is coming and are scrambling.
That’s the way I see it. My record speaks for itself. The reason I have a record is I say what nobody dare says. I ask the questions that folks don’t ever want to even think about. I say/ask it early and often. Could this be a summer of discontent? Could there be a disastrous fall? Could things be getting worse, not better? Fasten your seat belts!
Hope for the best, prepare for the worst. Anything in between and prepare to pay a price. Dare to ask questions of “What if this”, “What if that?” Be bold enough to find the answer. The best answer. Even the ones you don’t want to find. Even when you are ridiculed for doing so.
Here is a secret. The only reason my 2008 and 2009 have been record years for me personally was I started preparing in 2007. When do you think it is time for you to prepare? You can disagree, but you can only avoid the gravitational downturn we are going to face by a plan and preparation and even that is no guarantee. Last fall I said that after there is a glut of goods on the market, it would be followed by shortages. I can identify several items in society that are now in a short supply. Can you? Do you have a stock of these items? My job in life is staying at least one step ahead of the masses. One step ahead of you.
In the meantime, you can hear some more of my thoughts in this Podcast done by Ed at OzDomainer.com.
See you on the other side.
Have a GREAT Day!
Rick Schwartz
Kevin
Ultimately though, no matter how much foresight and preparation, we are all at the mercy of each other because we live in”Cities”, in terms of our personal lives and our business lives, and especially doing business on the Internet which is one gigantic global city.
Protecting yourself by trying to insulate your assets from the impact of the economy is a futile cause I think. Look at real estate for example. For all the past decades it always increased in value like clockwork. Look at it now. A total disaster, still declining and the primary cause for unraveling everyone’s wealth base. There were many domainers posting diversify your virtual real estate into real world real estate a couple years ago during the boom, and all the people that followed that advice are now in deep doo doo with that part of their portfolio. It was pretty evident the real estate business had turned into a ponzi like house of cards investment, but like all ponzi schemes everyone wanted to believe it could go on forever, which is mathematically impossible. There comes a point no matter how clever the intricisies in the scheme, no matter how much liquidity is out there to enable property buys with no cash down, that YOU RUN OUT OF ENOUGH NEW BUYERS to keep the game going and the bubble bursts and everyone scrambles to get out at the same time.
So yeh the world is in a mess, but at the same time millions, billions, and trillions of business is happening regardless like always. There are always industries that do well no matter what. You just have to find what’s doing well and get your assets and endeavors working there. The world cannot collapse it can only change. Change is good. Change clears off the dead leaves on the tree and brings in the new ones. There are over 6 Billion people still on the planet to do business with. You don’t need them all to become successful and wealthy. Just find the niches and get in on the action. Take risks. No pain no gain as they say. To hide and cower in a cave somewhere with the survivalist mentality is absurd. Opportunity is worldwide right now and it’s never been so easy and affordable to access it.
Personally, I’m burned out on all the doom and gloom, including my own preaching of what was coming in the past year. I’ve come to the conclusion it is what it is. It’s something new we’ve never experienced before like you say, unchartered waters, and we all just have to make the best of it. Some will drown, most will find a way to tread water, a few will actually swim well through it all and do great regardless. It all depends how resilent your mind and endurance are and how creative you are to get above the muck of it all and still find ways to prosper even in the worst economy ever.
What I do is keep my optimism and head in constant reinforcement mode now. Every morning before going online and every night before going offline I read and re-read over and over and over success stories of Internet companies and worldwide business stats articles about how much business the world does which is roughly $55 Trillion per year. That’s $1 Trillion a week in opportunity in my eyes. And the advertising industry is $365 Billion annually so about $1 Billion each day is spent on advertising. I know no matter how bad the economy people still have to do business, still have to buy advertising, still are growing the Internet, etc and if I work hard, ignore all the doom and gloom to keep my mind unfettered by the negative energy, innovate and create new ideas, I’ll continue to do fine. It’s all in the mind that’s the bottom line. It’s ok to be aware of all the doom and gloom, but don’t let it overtake your psyche or you won’t be able to operate well each day. Load your mind with POSITIVE THOUGHTS not negative thoughts. The energy in your mind is real and the more exciting stuff you feed into that energy the more invigorated your mind will feel each day just like your body does when you eat 3 healthy meals a day and the more opportunities and success will come your way.
Rick Schwartz
Kevin,
Don’t miss the point. Here is an example of the same set of circumstances with one major difference and a big difference in the outcome.
If you buy a million dollar home and it goes down to $500k market value and you have no mortgage, you are in the same world as the guy that has the same house with a $850,000 mortgage on it and is underwater. Only difference is one is scrambling and under a lot of pressure and one is watching TV waiting it out in comfort.
The name of the game is to put yourself in the position to minimize the fallout and buy time to wait it out while focusing on opportunity not spending time scrambling.
So I will repeat for the infinite time, not doom and gloom. A ROADMAP, a chart, a plan to succeed and thrive during the times that others are in turmoil.
Imagine a storm at sea. One ship and captain unprepared and caught in the storm. The other captain saw it coming and sought safe harbor. One is fighting for survial, one is fishing for dinner.
Kevin
Here is a good example of success during the worst economy in our history. Three young entrepreneurs asked the question”What do we do with our text books after college?” The solution has made them millionaires and their company is doing $31 Million per year and selling 50,000 used college books per day.
Full article here on CNN.com.
http://www.urltwit.com//1p
art furm
Kevin,
All this is well and good, yet the focus on wealth and business success can’t mask the path we are on to total economic collapse, civil unrest, scarcity of vital resources (water, food, energy) nor do any good when hungry people start showing up at your door with guns looking for food. When society turns to chaos disease and war are next– that means all the money in the world will do you no good when the water and power get shut off and there are no medical supplies or services to treat you.
I think Rick’s message is be prepared. What’s the harm in having a couple of months supply of canned food, water, medications and power supplies?
Rick is a sage and sometimes sages are great resources when the news is too busy on salacious gossip and pop culture to prepare mankind with the truth.
I sat through the movie previews last weekend and 3/4 were about the end of the world. It’s a trend that started with Independence Day and then the will Smith movie. Hollywood is trying to send a message.
Mac M
Rick is on the money again, but I think we have a couple of years to get our financial houses in order. The Spendulous bill that Congress passed is our nations last credit card- the bank of China will not let us have another one. Our schools and governments have used that money as a stop gap- when it runs out, you have more people joining the 15 to 20% who are now out of work. In two years, the ignorant media will try to tell us that we chose the wrong Democrat, and how Hillary will save us; as if anyone in our government is helping us. they aren’t even reading the bills they are passing. The media will never admit the huge errors our government is now making that are exacerbating the financial crisis. When the stimulous money ends, and inflation takes hold, Rick and a very few of us in the U.S will be right again, and prepared.
(the Chinese are buying commodities and are aware of our impending doom)
Kevin
Mac, without the US, China will collapse right after we do, should that ever happen to us. Over half their $1.9 Trillion in foreign reserves are in the US and we account for 1/5th of their trade and are their biggest customer for their goods. China has 130 Million of their people living on $1 per day and high unemployment. The last thing China wants is to see the US tank and have hundreds of millions more of their labor force out of work. China’s entire banking system is state controlled so you can only imagine the shenanigans going on with the government controlling the entire financial system over there. For all we know they could be in worse shape than we are right now. I wouldn’t bank on any numbers coming out of a political system like theirs as being accurate.
Anthony
Rick,
As you have noticed the world is changing what it revolves around now. I love reading your posts, the raw truth behind them is refreshing. Money and assests are good in a world that is ran by a government controlled society who puts value on such assets. But I have never heard you speak of faith. This question is for you, does not have to be published to your blog as I know you moderate your comments.
I have to ask….
Would you accept the mark?
http://www.xmark.com
The FDA approved an implantable chip for us humans in Oct. of 04, as I’m sure you are well aware of. The same type that is in the new passports.
“He also forced everyone small and great, rich and poor, free and slave to recieve a mark on their right hand or forehead, so that no one could buy or sell unless he had the mark,”
If this comes to pass, it does not matter how much money you have in the bank, domains you have in your portfolio or how much traffic you have to your sites. Would you rather give up everything or take the mark, chip, whatever you want to call it?