TAM

TAM stands for Total Addressable Market. It refers to the overall revenue opportunity that exists within a specific market for a particular product or service. TAM represents the maximum potential sales opportunity that a business can achieve if it captures 100% of the market demand. However, businesses focus on a more realistic slice of the market, the Serviceable Addressable Market, which considers who can actually afford and want their product. So, TAM gives a sense of the overall opportunity, while SAM helps businesses set achievable goals.