Market Size Estimation (TAM/SAM/SOM)

Format: Estimate the market size for your product.

Concepts:

• TAM (Total Addressable Market): All potential customers worldwide
• SAM (Serviceable Addressable Market): Customers you can actually reach
• SOM (Serviceable Obtainable Market): Customers you can win in the short term

Exercise: Estimate the market for an "AI code review tool for indie developers":

TAM: Approximately 27 million developers worldwide
SAM: Of those, approximately 5 million indie developers/small teams
SOM: Year 1 target: 1,000 paying users

$19/month -> SOM annual revenue = $19 x 1,000 x 12 = $228,000