venture-lab.org frames estimating market size terms of Total Available Market, Served Available Market, and Target Market.
Obtaining the 12 million annual traffic visits requires substantial investment in traffic acquisition; industry standards suggest 24% of total revenue. Since the corporate market has the lowest cost per customer acquisition costs it is a good starting point for us. We can readily identify these markets and target them with sales calls. While servicing corporate clients, we can slowly ramp up traffic acquisition.
Total Available Market
2010 global corporate e-learning market is $52.6 bn which includes learning management systems, courseware, and talent management systems. (per analysis done by GIA).
Served Available Market
Fortune 1000, Government agencies, Public School systems, Hospitals, Retirement centers.
Fortune 1000, Government agencies, public school systems, and hospitals. Organizations that have high human capital investments and could be better targets.
The fee charged to E2 could be anything, but based on customer interviews would need to be moderately priced at $2,500 to $10,000. Our product would help companies reduce the amount of courseware libraries they currently use.