TAM/SAM/SOM

Definition

Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market—three increasingly pessimistic estimates of how much money you might theoretically make. The trilogy of optimism, realism, and 'if everything goes perfectly.'

Example Usage

Our TAM is $500 billion if you count everyone on Earth with an email address, but our SOM is approximately twelve enterprise customers.

Origin

Standard market analysis framework from business strategy consulting

Fun Fact

Most startup TAM slides use creative math that would make a politician blush, counting anyone who has ever experienced the problem as a potential customer.

Source: Market analysis and business strategy terminology

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