Definition
The portion of the total addressable market that a specific product can realistically serve given its current business model, geography, and positioning.
Why it matters for growth
SAM is a more honest planning number than TAM, since it excludes segments the product cannot actually reach or serve today.
Example
Out of a $2 billion TAM, a founder estimates a $400 million SAM by excluding regions where the product isn't yet localized.
FAQ
- What is Serviceable Addressable Market (SAM)?
- The portion of the total addressable market that a specific product can realistically serve given its current business model, geography, and positioning.
- Why does Serviceable Addressable Market (SAM) matter for growth?
- SAM is a more honest planning number than TAM, since it excludes segments the product cannot actually reach or serve today.
- What is an example of Serviceable Addressable Market (SAM)?
- Out of a $2 billion TAM, a founder estimates a $400 million SAM by excluding regions where the product isn't yet localized.