Website Management Needs SCost Controls in Slowing Economy

Smart website management requires a balance of both revenue and expenses to achieve a healthy profit and healthy growth.

When the economy is growing strongly, it is of course much easier to grow revenue as well.

Businesses spend more on advertising, they make more money and they often increase their advertising budgets in response to their growth in revenue.

Websites that rely on advertising for most if not all of their revenue will benefit greatly from this increase in advertising.

They may even be tempted to increase their expenses by using the profits to invest in content, people and technology.

So revenue in a strong economy drives growth and brings the expenses along with it.
When Expenses Lead Revenue
But the opposite is true as well when the economy starts to slow. It is especially true during a recession like the deep downturn in 2008.

When economic and advertising growth begin to moderate, they put pressure on the bottom line for websites.

When those slowing growth trends turn into declines -- especially deep declines -- it becomes time for a much greater focus on strong cost controls.



Website Management Needs SCost Controls in Slowing Economy