Step 2: Estimating the Value of this Market Overall
The second thing you want to consider is about how much money the average person in your market is spending on niche-relevant products and services.
Let’s go back to the example of those who have an interest in small business (of which mobile marketers are a smaller segment). Just consider how much the average small business owner spends each month. For the sake of simplicity, let’s assume it’s an online business owner with low overhead:
Domains, hosting, autoresponder and other tools: about $750 annually
Employees or independent contractors: about $40,000 annually
Product development: about $25,000 annually
Advertising: about $25,000 annually
Again, these are just made-up figures. The actual figures would vary widely depending on the industry and what the small business owner is selling.
For example, someone who’s developing software and apps is likely to have a far greater product development budget than someone who is developing books. And of course, someone who sells physical products would have manufacturing, stocking and shipping expenses. So, just realize these figures aren’t made to represent any particular industry.
Now, with that disclaimer out of the way…
What we can see is that an average small business owner spends over $90,000 annually. That’s a good sign. Whether you’re looking at the overall market (which include the 1.9 million people interested in small business) or the smaller segment (those who’re interested in mobile marketing), you can see this is indeed a valuable and big market.
So, what is this market worth to you? That’s what you’ll determine in the next step.