Methods for Assessing Market Potential

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My inbox, and I’m guessing yours, is constantly inundated with money-making “opportunity propaganda.” Try this,

voila, you’ve made it big. By becoming an affiliate and selling my ebook, you’ll be flush with cash quickly. I don’t know about you, but I can’t discern the difference between a good opportunity and a bad one. Consequently, I made a list of nine criteria, a checklist, to use when I come across something that I don’t consider full of “poof.”

Is it an excellent product, both personally and in my target markets? 1.

For me, this is true. In my experience, free information items rarely deliver what they promise.
I’m tired of slamming through 150 pages to get to the four that contain anything remotely “real.” Also, out of the hundreds I’ve read, only about 2 in 25 are passably organized and written, so how different can the material be?

If a book costs $20, why would someone pay $49 or $249 for the same information? Electronic books are not the same thing as printed books. Those who buy them do so for different reasons. What makes this product unique enough to warrant my purchase, even if it isn’t informational and I can find similar products elsewhere for less money? Do the answers make sense, or are they provided from the producer’s perspective with a “dance of the sale”?

Some folks sell whatever they can. Does this manufacturer qualify as such? In most cases, if they do, it is obvious. When I asked website owners that offer external things if they’ve read or tried them, the vast majority said they don’t care about the truth or value, only the money. It makes me uncomfortable when I receive an email promoting a teleseminar, and the content itself states, “First time given.”

What part does this play in establishing reliability? No, it doesn’t. They don’t bring back the brainiacs. The manufacturer’s label will now be applied to the retailer. Please, please, please return a defective item for a full refund if you purchase it. These people are gambling that you won’t have the nerve or interest to inquire. If this happened more often, consumers and businesses would benefit from increased standards.
Poor-quality goods continue to be sold because consumers are too afraid to speak up. Spend your money how you want.

What is the current state of this product’s demand in the market?

Where does demand sit on the normal distribution? For new items, the bell curve (a symmetrical sales graph) climbs gradually, peaks at a curving plateau, and then spiral down (sometimes steeply, sometimes more slowly) depending on the nature of the product and the state of the economy. This is true for physical and digital products, regardless of where they are sold.

When did this product first appear on store shelves? Is it fresh, stale, or overexposed? This will require some digging.
But beware: if the original producer doesn’t respond to your inquiry, that’s the solution. What are the manufacturer’s plans for the product’s eventual retail distribution? Can anyone take advantage of this deal? Is he getting going now? Selling to early adopters is one approach to the ebook market, followed by launching an “everyone” affiliate network. To whom do they refer when they say “everyone?”

Is the future of this opportunity online rather than in stores?
This transformation isn’t optimal for all possibilities.
Take Coke; it can’t be sold online because it’s offered exclusively in stores. The market for website hosting and domain names has become saturated. Getting involved with this product is like a plateau product that needs serious production pushes to generate meaningful profits. Are you prepared to make the necessary sacrifices (described below)?

What’s the third question?

Is this a seasoned corporation, or just starting? Customers often hesitate to buy from startups because they wait for the company to prove itself. Consumers are more likely to support well-established brands. According to the numbers, 85% of startups fail within the first year. Customers like to do business with established companies and reputable individuals.

I will abandon further investigation if I haven’t found reliable information about the company. Feel free to contact them via email or phone with any inquiries. Often, I have trouble even locating a contact phone number. Moving on to another prospect is best if you don’t hear back from them.

Validation of Income-Generating Real Estate

Naturally, advertisements boast the best possible outcomes while glossing over potential drawbacks.
Ignore this and make your calculations based on the information you find.
Having a solid foundation in accounting makes this task more straightforward for me. If you don’t feel comfortable with this kind of math, seek the help of an accountant, enroll in a relevant course, or read up on the topic. You can use this knowledge in a wide variety of contexts.

When assessing a potential opportunity, remember to put your emotions aside. Falsifies the evidence. You can use your feelings to close a sale, but you shouldn’t let them influence your spending.

To do this, you need to calculate your break-even point honestly, your desired income, the number of sales necessary to reach that goal, and the period during which you need to do it. To make a decent living off of ebooks, you need between 117,000 and 225,000 readers. How do you plan on obtaining that sum? That much is undoubtedly feasible.

5 – Costs

Is the pricing too high for the potential purchasers? Can you estimate the potential buyers’ disposable income? Is the product within their price range? How does your price compare to the market average? Is the extra cost warranted by the quality of your product or service? Customers’ valuation, not yours. Although pricing isn’t always the deciding factor, it could be fatal if it’s the company’s last chance.

Is this an item that will only be sold once?

It’s not easy to find a product that sells itself and incurs no costs; therefore, any that does deserve serious consideration. Marketing a product only sold once has a higher overall cost and a higher cost per unit sold. For instance, if a membership fee could be charged for access to all ebooks and updates, the business may make more money overall due to the lower cost of sales.
A website hosting service, for instance, will have to spend more on advertising to win you over. After that point, keeping you around won’t cost as much. They also have the disadvantage of enduring the pain of shifting to a new host.

Seven, what kind of distribution model does the manufacturer employ?

How is the producer helping you to be a successful marketer? Not all businesses supply every necessary item. Does all the marketing content generation fall on your shoulders? Do you have the resources to complete the task? What would it cost you if they didn’t give it to you? Profit margins of over $5,000 seem impressive until you factor in the cost of creating promotional materials. This point must be made clear; failing to do so will significantly limit your options. Get a firm grasp of your needs and the associated time and money investments.

8. Will you be responsible for making sales presentations, cold calls, and following up?

Ask yourself honestly if you have the resources to complete these tasks. If you have full-time work and no time during the day to follow up with leads, mail, or conduct sales calls, would you be willing to do it in the evenings? How confident are you in making sales?
If not, how much time and money will be spent teaching them?
Is it necessary, or can you discover something else that’s a better fit?

9. Are there any derivative works in the same market?

Is it possible to discover additional products that complement this one? If a customer buys one of your products and is satisfied with it, they may be open to purchasing more of the same. There’s also the option of offering “one free with the purchase of” or “two for the price of one” deals.

To conclude

Be aware, and know your limits with the goods and the advertising. Look for the hidden fees the corporation doesn’t want you to know about until you make the original investment or purchase. Don’t rush your decision; instead, talk to other people in the sales department who aren’t invested in the outcome of your conversation.

EzineArticles.com/5267 is where this article was sourced from.

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