Potential Market & Market Share
Next, identify the size of your potential market. For example, if you are building a platform for all real estate agents in the United States, you would have upwards of 1.3 Million potential users. It’s helpful to take that number and “stress test” it with various market share levels. For example, if you are able to get 1% of a potential market to sign up for your platform, you may still be very successful. We prefer projections against 1%, 2%, and 10% market share. If you are planning a subscription based website and think you will get 50% of your potential audience to sign up, chances are you’re being overly optimistic and you should plan for lower numbers.
Potential Market Size x Market Share % = # of Users