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How do you determine the size of the market before getting into it?

by bgump
11 replies
So I am trying to figure out how to quantify the size of a market in terms of customers/dollars spent before getting into it.

Specifically I have a couple of new niches that I am looking at. I've done the research and selected a couple I want to pursue.

Ideally I'd like to find some numbers explaining how large each one of these niches are in terms of potential customers and money spent.

So far I've been getting the data by searching through google to find any studies about these particular groups of people and most of my information has come from spending a few hours backing into the numbers. Also with some niches the information has been easy to find while with others it's been extremely difficult.

I'm sure there has to be some websites or companies that help gather this type of data rather than doing it manually. What resources are out there that you use?

Thanks!
#determine #market #market research #size
  • Profile picture of the author NatesMarketing
    A few preliminary places I "scan" for some information is via Google Trends - it will allow you to hone into locations as well (if building a physical business)

    I also look up similar sites/businesses on Alexa - Actionable Analytics for the Web , http://quantcast.com , etc to get an idea of the market.

    Also, using ad platforms like Adwords and Facebook's Ad Manager...you're able to gather some information concerning potential customers.

    Facebook's ad manager allows you to look at all kinds of data - it's a very useful system...even if you're not using it for advertising.

    Those are what I mainly use for my preliminary research.
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  • Profile picture of the author banwork
    Often you do not need to know the size of the more broad market but just the size of your exact audience. For example, if you want to sell shirts you do not need to know how many people like to buy shirts collectively but how many people will buy your shirts. Just try out what you want to do and approach the exact people you want to buy from you directly. There is no good way of predicting better than luck what you can be successful with beforehand so just try out all of your ideas. Whichever one works you can then focus more on.
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    • Profile picture of the author IneedProfit
      Originally Posted by banwork View Post

      Often you do not need to know the size of the more broad market but just the size of your exact audience. For example, if you want to sell shirts you do not need to know how many people like to buy shirts collectively but how many people will buy your shirts. Just try out what you want to do and approach the exact people you want to buy from you directly. There is no good way of predicting better than luck what you can be successful with beforehand so just try out all of your ideas. Whichever one works you can then focus more on.
      You should be embarrassed to post crap like this. Yeah, most businesses just rely on luck, and a little trial and error. Alright Bob, a lot of cars pass by here, lets break ground. Donald Thompson is ready for your trial run at his franchise -- it's all just luck -- they must have a lucky horseshoe in their ass.
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  • Profile picture of the author ATAC
    Here is a couple cool tools to play around with that I am sure will help ..

    Real-Time Insights Finder

    Consumer Barometer
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by bgump View Post

    How do you determine the size of the market before getting into it?
    I don't.

    I just guess, using my general knowledge, my impression of whether or not it's something that people are interested in, whether or not there are suitable products with suitable sales pages for me to promote as an affiliate (that's hugely important to me!), and whether or not people are spending money on magazines to read articles about it. If there's enough interest in it for commercial publishers to print and sell magazines with articles about it, then that's good enough for me.

    Originally Posted by bgump View Post

    So I am trying to figure out how to quantify the size of a market in terms of customers/dollars spent before getting into it.
    Why?

    Why is "quantifying the exact size of a market" so important to you?

    You surely don't imagine that your own prospects of monetizing a market are somehow proportional to its size? The reality is far more complicated than that ...


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    • Profile picture of the author bgump
      Originally Posted by Alexa Smith View Post


      Why?

      Why is "quantifying the exact size of a market" so important to you?

      You surely don't imagine that your own prospects of monetizing a market are somehow proportional to its size? The reality is far more complicated than that ...


      .
      You're right I don't imagine that monetizing a market is proportional it its size.

      It's important to me to not overlook understanding a market before getting into it. I'd like to be able to look at some numbers and get an idea of what the market looks so I can make data informed decision going forward.
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  • Profile picture of the author Tom Reed
    1 way to find a niche that you should avoid is 1 that has no competition.

    Google the keywords and if there are no ads running, there's a good chance it's not a good online based niche.
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  • Profile picture of the author seobro
    Often, I will try to sell my product on ebay to get a good idea of market size. Also, this will give me an idea on how to set the price. Notice that people love your product until they have to pay. Then you find that they really to not need it or want it. Generating demand is not easy.
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  • Profile picture of the author WillR
    I'd have a look around at who is operating in the market already and see what sort of following etc they have. It should give you a pretty good impression.
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  • Profile picture of the author IneedProfit
    And to answer your question... Google Keyword Planner, buying market reports, paying for studies, doing your own market research, social media polls, etc. The problem here is everyone wants something easy and sometimes it's not just a click away.
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  • Profile picture of the author rlopez88
    Google keyword planner. If you don't know how to use it try searching on google for tutorials
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