How interest rate is affecting those creating content for developers?
And why Krunch is needed now.
Note: Krunch is Strictly for those creating content for developers, if you are not one of them feel free to ignore this.
There is a pattern that when the economy is doing well, all outreach functions such as developer marketing, education, experience, and community building expand. When the economy is not doing well, as is the case right now, these functions tend to shrink. Now, those of you who are creating content for developers probably work under one of these categories and may already be witnessing layoffs happening around you.
What I am about to share is not scaremongering, but rather an alternative way to break this pattern.
The biggest factor that is causing all the layoffs you are seeing around you:
To understand this alternative way, it is important to first put ourselves in the shoes of investors and company management. Companies are created to deliver something valuable to society, and investors are the ones providing the financial capital to these companies, enabling them to achieve this crucial goal in a market economy. In order for investors to assess which company to invest their financial capital in, they consider which one can provide them with the highest possible return. The return is influenced by a company's ability to generate revenue, profit, and user growth. Naturally, companies that can achieve high user growth will attract significant capital from investors, while those that cannot will not.
The factor that has undergone the most significant change, and arguably the most important factor leading to layoffs and budget tightening in the tech industry, is the interest rate set by the Federal Reserve (Fed). As depicted in the chart below, since 2022, the Fed has dramatically increased the interest rate from 0% to its current level of 5%. The objective is to mitigate inflation by slowing down the economy. Due to the global reserve currency status of the US dollar, this interest rate hike not only affects the United States but also impacts other major economies such as Canada, Europe, the UK, Australia, Japan, China, and Southeast Asia.
So how is this related to you?
With interest rates rising so dramatically, it will inevitably have unintended consequences on people's behavior and expectations. For investors, this means that the threshold for investing in riskier tech companies has significantly increased. Why? Because investors now have much safer alternatives, such as parking their cash in banks. As a result, we are currently witnessing a major reduction in capital flowing into the tech industry. This, in turn, translates to less capital available to hire more content creators and marketers like yourself. Additionally, company management will pay much closer attention to the return on every dollar spent and will be more inclined to cut unproductive projects that do not contribute to revenue and growth. Consequently, you will need to exert more effort to demonstrate how your work contributes to company growth.
Inevitably, with such a significant change in the economy, it necessitates a shift in our approach to adapt to the new environment and ensure continued success.
The new approach is simple: Place more emphasis on tracking and reporting the value that your content creates for the company. Demonstrate to management how your content drives increased traffic, visitors, and sign-ups. Take the initiative to share your outstanding work with them, and make them aware of the remarkable contributions you are making.
We, at Krunch, have made it incredibly easy for you to track and report the value your content generates for the company. In fact, existing analytics tools (yes, we're looking at you, Google Analytics) have failed to capture the full extent of the value you create, particularly when your content has an impact beyond your website or app. Considering the current environment, it's essential to ensure that all your value is captured and reflected in your reports to management.
By implementing the aforementioned approach, you'll position yourself much stronger when it comes to year-end performance evaluations and budget reviews.
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