There are economic cycles. They are either upward or downward.

We’ve been in “upward mode” for quite some time as of April 2019 — it’d be madness to think we’ll never switch into “downward mode” ever. If we are to believe that, time will season us.

When the switch happens, we know what the consequences are. We can’t know up to which degree the market will fall, but we know most people will be looking to spend less and improve their situation.

When reducing costs, not as a company but as an individual, we’re looking to cut down on costs by having a look at the liabilities section. What we have to pay monthly is a subsection.

That category ranges from mortgage to G Suite’s monthly payments. Or Squarespace, or Dropbox — you get the idea. The good news is, SaaS products are bought on a more rational basis than a car. We pay for them knowing that it will help us do more.

So in a cost-cutting session, you might want your company’s product to do more than the competition. In other words, have more gold in my gold-glitter comparison.

What’s my takeaway here?

In the upward period of an economic cycle, we’re focusing more on the glitter than the gold. You know, we’ve got ad spend budget, we care more about the prettiness of the logo or whether that button looks slick.

In the downward period of an economic cycle, we’re focusing more on the gold, rather than the glitter.

About Ch Daniel

I run Chagency_, an experiences design agency — we help SaaS CEOs reduce user churn. I write daily on this topic and in similar areas. Here are my best pieces.

If I’ve helped you, follow me here and reach out: LinkedIn | Twitter | Email | Quora | YouTube 

I’ve also founded an app (among others) that has got 6 digits in # of users — chdaniel.com/app

If you want a more of a personal connection, here’s how to have that.