Due Diligence, Market Research.. Ahead of the curve.

[anthonyl]

Hello List.
I have been sitting on this business plan of mine for some time now - still incomplete.
I work in the industry and I think there is an opportunity for this product/service to grow as it is simple and attractive because it is branded/associated with the a fortune 100 company. So for customers to subscribe, they would see it is not some little five and dime startup.

My problem is that I am not sure whether paying some market research company to go out and interview my demographic would give me a good indication of whether I should go forward or not because of the fact that I don't think my demographics knows of this service yet.

My other idea is to build the prototpype - advertise (online & offline) and get subscriptions to use the service for free and then after a tipping point where I have attracted and retained, I then charge for the service.

What are your thoughts?

[Kevin Lee]

Hello List.
I have been sitting on this business plan of mine for some time now - still incomplete.
I work in the industry and I think there is an opportunity for this product/service to grow as it is simple and attractive because it is branded/associated with the a fortune 100 company. So for customers to subscribe, they would see it is not some little five and dime startup.

My problem is that I am not sure whether paying some market research company to go out and interview my demographic would give me a good indication of whether I should go forward or not because of the fact that I don't think my demographics knows of this service yet.

My other idea is to build the prototpype - advertise (online & offline) and get subscriptions to use the service for free and then after a tipping point where I have attracted and retained, I then charge for the service.

What are your thoughts?

Hi anthonyl,

Welcome to our forums!

In regards to your first question, why not conduct the market research yourself, rather than spending money you haven't earned yet? You could organize a focus group at a local coffee shop or email online surveys to your target audience, etc.

And with respect to your second inquiry, I think it's a good idea to offer your service for free and wait until you build up a large enough subscription base before you begin charging money. Sure some members will drop out when they learn they have to pay, but there should be enough people who stay to help sustain your business model.

For instance, http://www.emusic.com/ allows you to download 50 songs for free over a short period of time before they start billing you. However, people who sign up have the option of cancelling their membership before the trial period ends. I find it hard to believe that every customer would simply download 50 songs and then never return.

But just be sure that you're satisfied with your market research before building your prototype.

[Dave_Adler]

I agree with Kevin- do your own market research first. Get a sense for who your customers are and what they are going to find valuable. Once you've identified the prospective customer base do some micro-group research. Ask friends, relatives and colleagues for feedback.

With respect to the second part, definitely get your service up and running. Nothing says dollars like registered users.

[OmnivoreInk]

Hello List.
I work in the industry and I think there is an opportunity for this product/service to grow as it is simple and attractive because it is branded/associated with the a fortune 100 company. So for customers to subscribe, they would see it is not some little five and dime startup.

...

My other idea is to build the prototpype - advertise (online & offline) and get subscriptions to use the service for free and then after a tipping point where I have attracted and retained, I then charge for the service.

Since you're in the industry yourself, you should already have some idea of if there is a need out there for your service?

I say jump in with both feet with your prototype!

[LoveInventions]

Hello List.
I have been sitting on this business plan of mine for some time now - still incomplete.
I work in the industry and I think there is an opportunity for this product/service to grow as it is simple and attractive because it is branded/associated with the a fortune 100 company. So for customers to subscribe, they would see it is not some little five and dime startup.

My problem is that I am not sure whether paying some market research company to go out and interview my demographic would give me a good indication of whether I should go forward or not because of the fact that I don't think my demographics knows of this service yet.

My other idea is to build the prototpype - advertise (online & offline) and get subscriptions to use the service for free and then after a tipping point where I have attracted and retained, I then charge for the service.

What are your thoughts?

Market research doesn’t just have to be on what’s already on the market.

You can always get research from your key demographics showing them your concept and asking if they’d use your product/service.

As long as you can show them what you would do, the key benefits and features etc you can get a basic feel as to if or not they would be interested.

No market research is perfect but it does give you a good idea of what some of your audience think.

[Kevin Lee]

I say jump in with both feet with your prototype!

If you choose to do what Barbara suggests, I would advise that you build a prototype with only the bare essential features to save on costs. Then get feedback from your customers and advisory board on what direction you should take.

[TheRainmaker]

Congrats!

A few months ago I wrote extensively on market research. Check in the Inventors corner for the posts.

Let me know if I can help further! Dont spend a dime on a protype or advertising until you do some research!
Jude

[OmnivoreInk]

It's been a while... care to share on how things are working out for you with this?

[orxan]

You can use SurveyMonkey or other surveys programs to research your market. It is easy to use and I do it all the time. If you have a list you can send that survey to your list. If you don't have a list, find an ezine owner and send the survey to his list paying him money in exchange.

About advertising, I would advise to use social media advertising, because people are responsive to these things there and it is free, but effective form of advertising.

Also... People love FREE. yes, it is magic word. Customer doesn't like when he sees you are trying to sell him something. Give as much free info as possible and when you offer them paid subsciption after this, they will trust you and your sincerety and will join probably.

Orxan

[Donna]

You can use SurveyMonkey or other surveys programs to research your market. It is easy to use and I do it all the time. If you have a list you can send that survey to your list. If you don't have a list, find an ezine owner and send the survey to his list paying him money in exchange.

About advertising, I would advise to use social media advertising, because people are responsive to these things there and it is free, but effective form of advertising.

Also... People love FREE. yes, it is magic word. Customer doesn't like when he sees you are trying to sell him something. Give as much free info as possible and when you offer them paid subsciption after this, they will trust you and your sincerety and will join probably.

Orxan

This is going to sound like a really goofy question, but I haven't found the answer I created a survey on Survey Monkey and I want to link it to my website - however, I need the URL. Where do I find the URL for my survey?? Thank in advance for the help.

Donna

[orxan]

I don't where is the problem to link to the Survey Url on SurveyMonkey.com.

But if it is still problem you can alternatively put the codes of survey itself to your site or blog. Do you know simple HTML codes?

Orxan