Total Addressable Market(TAM) - Deepstash

Total Addressable Market(TAM)

After having identified your target market and your end user, you’re in a good position to estimate the Total Addressable Market (TAM). TAM is the amount of revenue you’d make if 100% of the market became customers.

To calculate this, start by figuring out how many people there are who fit your end user profile. Then multiply this number by how much each user is worth. The resulting figure is the TAM.

The sum you expect the customer to spend in a year X multiplied by the number of estimated total customers = TAM.

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jessicadelgado

Medical sales representative

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