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Is social media and internet marketing the last hope for the “middle class”?

Sobering facts:

Real (inflation adjusted) income for men in the U.S. has NOT increased for over 35 years.

Increase spending in the U.S. during the last generation has been a function of two things:

#1 The (false) wealth effect – greater spending due to higher assets values of stock portfolio’s and home prices.  

#2 Growth of women in the workforce (dual income households).  

The default rate for small business administration loans has skyrocketed from 2.5% 5 years ago to over 12% today.  In some parts of the country the SBA default rate is near 30%. Lending to small business is not a viable investment anymore.

Large business benefits when small business disappears. More market share… less competition – greater pricing power.

Because large companies have superior financial strength they can (over) invest in advertising and marketing to grow.

83% of TV ads don’t cover the cost of running the ad. Large companies have money to burn. The death of the yellow pages has crippled many small businesses.

Small business can now only invest in very high ROI marketing strategies.   

Is social media and internet marketing the only strategy that gives small business hope?

But if small business owners aren’t getting social media  / internet marketing results have they exhausted their final opportunity to compete?

What do you think?

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