TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?

As a marketer, I often find myself sitting down at my desk with a calculator to do some basic math. And most of the time, I’m in a kerfuffle with three acronyms: TAM SAM SOM.As a marketer, I often find myself sitting down at my desk with a calculator to do some basic math. And most of the time, I’m in a kerfuffle with three acronyms: TAM SAM SOM. Calculating your total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM) can be helpful beyond the realm of just marketing. Business owners can use these calculations to determine the viability of a business. Product teams can validate new product offerings. But that’s just the tip of the iceberg when it comes to the potential of the TAM, SAM and SOM trio. Ignoring these numbers can be detrimental. You could enter a market that doesn’t have a large enough market size to convince investors to back you, or you could set an unrealistic revenue goal for your business and burn your employees out. To help you avoid these issues, I’ve put together a guide that’ll teach you exactly how to calculate your industry’s total addressable market, serviceable addressable