Ten Ways to Evaluate a Market

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What are the “Ten Ways to Evaluate a Market”?

“So often people are working hard at the wrong thing. Working on the right thing is probably more important than working hard.” — Caterina Fake, founder of Flickr.com and Hunch.com

Key Points:

• These ten points help identify the attractiveness of a market:
  
  
  
  • Urgency: How badly do people need this right now?
  • Market size: How many people would purchase this?
  • Pricing Potential: What’s the highest price people would be willing to pay?
  • Cost of Customer Acquisition: How easy is it to acquire a new customer?
  • Cost of Value Delivery: How much does it cost to create and deliver the offer?
  • Uniqueness of Offer: How unique is your offer versus the competition’s? How easy is it to be copied?
  • Speed to Market: How quickly can you create and sell?
  • Up-Front Investment: How much do you have to invest before having an offer ready?
  • Up-Sell Potential: What related offers could you present to purchasing customers?
  • Evergreen Potential: Once the offer is created, how much work do you have to put into it to continue selling?
• You should rate them from 0 to 10, with 0 being extremely unattractive, and 10 being extremely attractive.
• When you’re done with the rating you should add it up, and depending on the score, you’ll have an idea of how promising your idea is.

Questions for Consideration:

• How attractive is the market for your idea?
• Are there other markets that may be more promising?
• Can you alter the idea to appeal to a more attractive market?

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