TAM (Total Addressable Market)

What is a TAM (Total Addressable Market)?

Formula: Total Number of Potential Customers × Annual Revenue Per Customer

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Measures the total market demand for a product or service in terms of revenue potential. Essential for business planning and investor pitches. For example, calculating the total possible revenue if every potential customer bought your product. Companies use TAM analysis for strategic planning and fundraising.

How do you calculate TAM accurately?

Calculate TAM by analyzing market data, customer segments, and revenue potential. Consider factors like pricing strategy, market penetration, and growth trends to determine total market opportunity.

What makes TAM analysis reliable?

Reliable TAM analysis combines multiple data sources, market research, and conservative assumptions. Include competitive analysis and market dynamics for accurate sizing.

How do you use TAM for planning?

Use TAM for strategic planning, resource allocation, and growth forecasting. Align business strategies with market opportunity and competitive positioning.

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Who is this for?

My services will turn on a tap of consistent flowing leads but it’s not for everyone. We’re likely a fit for each other if you’re:

A SaaS businesses that need more customers

If your SaaS company needs qualified users who are ready to become paying subscribers, I can optimize your Google Ads to deliver consistent leads.

Turning over of at least $20k/mth in revenue

I’ll use Google Ads to pour fuel on the fire. We need to know you have product market fit to be confident that you have a service that people are going to buy.

Have a strong retention rate

New users are great but we need to know that they will stay long enough to generate profit from their LTV.

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