Evaluating Competition, Adwords, sites etc.

[Action Mike]

I have an idea I am excited about, it is a large market in the US at around 60 million potential customers. I've been researching and there is a lot of competition with some well known companies. I think I have some ideas that are not being implemented but I am in the process of researching all the similar sites I can find to see what they offer.

Does anyone have any tips on determining if it is still worth taking a shot with a lot of competition? I know its a good sign on one side because that means there is a lot of demand. I loved what MJ DeMarco said in the book about not being scared away from competition, I guess what I am trying to determine is there a certain point there is too much for the market if you have limited resources to get the site up and running.

If it turns out I can only add a few things that are better than what is available is it worth pursuing or find another idea?

Doing Google searches for common key words shows 4 adword listings at the top and four at the bottom, nothing on the side. I am just learning about adwords but is it possible to compete with companies that have deep pockets by buying adwords? In other words would it be impossible for me to be seen with a limited budget or does the system work in a way that I would get top listings for x searches so the difference is deeppockets.com might show up high on 10,000 searches and I show up high on 1,000 searches. Just trying to get an idea what to expect.

Another note about the key word searches the competing sites were high on the regular results. Would it be possible to use adwords as a way to rank high, at least for however long I pay for adwords.

Another thought, is it possible a market is large enough that you can have a great site that is just as good as the competition and there are enough customers to still make money?

 

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[Scot]

The first link in my signature has a couple of good resources to evaluate market for your idea.

Competition is good though. It does show there's a market for your idea.

However, that last question you asked, if you think that way the answer is no.

Add value. Value doesn't always mean you're adding new and exciting features. Value can be that you offer outstanding customer support. Value can be that you focus on a small niche in that market and specialize in them.

Without knowing the specifics, it's hard to tell. But are the competitors innovative and always evolving, or have they been there so long they've become stagnant and reactive? There's always the opportunity to be the disruptor.

 

[Action Mike]

The first link in my signature has a couple of good resources to evaluate market for your idea.

Competition is good though. It does show there's a market for your idea.

However, that last question you asked, if you think that way the answer is no.

Add value. Value doesn't always mean you're adding new and exciting features. Value can be that you offer outstanding customer support. Value can be that you focus on a small niche in that market and specialize in them.

Without knowing the specifics, it's hard to tell. But are the competitors innovative and always evolving, or have they been there so long they've become stagnant and reactive? There's always the opportunity to be the disruptor.

Great, I will check those links out. From what I have seen I strongly believe I can offer a better experience for the customers and better customer service, better layout etc. I get that you need to do it better I guess I am just trying to figure out to what level is necessary. Like I can make it a better experience, better support nicer features but I don't know (at this point at least) if I could bring something "revolutionary" to the table.

Good point about specializing, I have spent most of the morning thinking about doing it in a way more focused on once specific aspect of the business rather than try to appeal to everyone. Its kind of interesting how situations change and force you think more creatively and what new ideas can come out of nowhere when you have to be more competitive.

I would say that the other sites I have seen are up to date but have not made any outstanding changes or additions in a while.