How are your competitors doing?
This week, we're taking a look at a few different ways to estimate the market size for a web 2.0 start-up. Today we're going to talk about how to estimate the market size based on how your competitors are doing in the marketplace.
If you don't already have an idea of who your competitors are think about who sets the standard in your industry, or what types of products/applications are similar to yours. Look at several competitors to get a nice range for your business's market size.
For example, one product similar to ours is Google Docs. It's like Swivel in that it gives people a private space online where they can work with others. Swivel could find a market here among people who are interested in working with their documents online and want a first-class chart creation tool.
From looking at sites like Quantcast and Compete, we can estimate that Google Docs has 1.5 to 2 million unique monthly visitors in the US. If 1 in 20 of those people would be interested in using Swivel, then that's a market size of 75 to 100 thousand unique monthly visitors.
Like I said yesterday, I still have a lot to learn about marketing, but I thought I would share my strategies with you. I'd love to hear marketing tips and stories from you too!
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