amp0193
Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
What are the ways you verify a niches T.A.M. (Total available market)
TAM (Total Available Market) is way more broad than counting google searches. TAM is basically everyone who could possibly own your product, worldwide.
For razors: All men in the world over 16 who have facial hair. Take that # of people and multiply by the average number of times they need to buy razors over the year, multiplied by the price. TAM way in the billions.
TAM is a big overview looking at if a vertical is even worth spending time on. Also important... is it growing, or shrinking over time? You might have to dig into research, trends, and studies to learn this.
Next is SAM (Serviceable Addressable Market). This is the portion of the TAM that your product is really designed to reach.
For razors: Maybe you your plan is to sell old-fashioned straight razors in South Africa. What demographic uses straight razors? Old men? High-income, white-collar millennials? Whatever it is. How many of those people are in your target area and what would they buy a year. That's your SAM.
Finally you have SOM (Serviceable Obtainable Market). This is the percentage of the SAM pie that you think you and your company can capture.
For razors: So you're selling old-fashioned straight razors in South Africa like 10 other companies. Your plan is to sell through high-end men's fashion retailers, and to target only the high-income, white-collar millenials. At this point, you estimate the volume you could do through those retailers (how many of these stores are there in South Africa, how many would they sell). Whatever that number is... maybe it's 1 or 2 percent of the SAM... that's your SOM.
So to recap:
Think not only about what product or category. But also, about who you're going to target. How many of those people are there. How are you going to reach them. How many can be reached by that channel. These sorts of questions.
I would reverse engineer iKonick and figure out where there traffic is coming from. It might not be from google searches. New products, that require discovery and awareness before purchase, might not be searched for... if no one thinks to search for it, or even knows it exists.