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How do you conduct software market research?

The easiest way to obtain accurate market research is to purchase it. There are a number of agencies that sell such information but this type of reporting is very valuable and it is also typically very expensive, especially for a small developer just starting out. It is not always realistic for a small business to spend a large amount of capital on purchasing market research.

There are less expensive ways to get a feel for a markets size and scope. Examine the competition in your niche, look at their website popularity and traffic. You might also find out some interesting details  if you pull a Dunn & Bradstreet report on them, keep in mind if they are privately held this information may not always be accurate. Take a look at the download sites, look at the popularity and download numbers of the applications in a the niche that you are considering.

Also Developer Resource contains some statistical information on the growth in software categories and region http://www.developer-resource.com/statistics.htm. Use this information to determine what markets might make the most sense when you are just starting out.

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