Some good advice here cheers :)
The customer that originally wanted printed advertising was my dad :) He'd been struggling with keeping his printed advertising in line with his website for some time.
The product I'm building was originally aimed more at bricks-and-mortar store owners who wanted an website (most of these guys don't need ecommerce) - the ecommerce part of it came much later.
Most bricks and mortar stores rely on some type of printed advertising - it forms an important part of all physical retailing - just look at all the large retailers - Officeworks, K-Mart etc - they all have printed catalogues being generated on a 4-8 week cycle. These types of catalogues were out of reach for small business owners - they either have to pay $500-$1000 for each one to be designed or they have to try to create their own marketing materials using Word or Photoshop.
I certainly see what you mean about ecommerce being difficult to break through - there are just so many options out there.
My gut feeling is that local bricks and mortar merchants in South Australia, where i'm from will respond to a site builder + catalogue designer more strongly than purely online retailers. Thats why I've also registered www.localsa.com.au to promote this product under that brand. This approach will of course require a more traditional sales approach ie knocking on doors and cold calling.
So my approach will be two pronged - ecommerce merchants targeted through the generic wizifi brand and local merchants tageted through the localsa brand.
Will be interesting to see which works better.
I know it's probably naive to think this way but I only need 125 customers to match my current salary. Maybe I'm being optimistic, but that number doesn't seem too unatainable - especially since what i'm really selling is hosting with the site builder and catalogue software as value added.
The idea of targeting a niche is a good one - now to find a bunch of under-serviced people ;)