Targeting

Total Addressable Market (TAM)

The total revenue opportunity available if your product achieved 100% market share in your target segment.

What is TAM?

Total Addressable Market represents the entire revenue pool available for your product or service. For B2B SaaS and dev agencies, TAM helps determine whether your market is large enough to justify investment and guides outbound targeting strategy.

TAM Calculation Methods

Top-Down

Start with industry data and narrow by your ICP filters. Example: "There are 50,000 SaaS companies in Europe → 8,000 are Series A-C → 3,000 match my tech stack criteria → TAM = 3,000 × $120K ACV = $360M."

Bottom-Up

Start with your ICP and count actual companies. This is more accurate but more time-consuming. I recommend this approach because it produces an actionable target account list, not just a number on a pitch deck.

// TAM vs REALITY

pitch_deck_tam: "$5B market opportunity"

actual_serviceable_market: 2,000 companies that fit your ICP

outbound_addressable: 500 companies showing intent signals right now

the only number that matters for outbound: 500

TAM and Outbound Strategy

Your TAM determines your outbound approach:

• Small TAM (< 500 accounts): Deep ABM, multi-thread every account, long nurture cycles
• Medium TAM (500-5,000): Signal-based outbound with tiered prioritization
• Large TAM (5,000+): Segment aggressively, focus outbound on highest-value tiers

I help clients define their realistic serviceable market and builds outbound campaigns accordingly. I would rather target 300 perfect-fit companies than spray 10,000 loosely-matched ones.