Serviceable Addressable Market

Also called SAM

Serviceable addressable market: the portion of the total market you could actually serve given your product, business model, and reach. Narrower than TAM.

Why it matters

SAM is a more honest measure than TAM of the market you can realistically go after with what you have. It grounds market-size claims in your actual product and geography rather than a fantasy of total demand.

For example

A payroll startup's total market is every business, but its serviceable market is the metro-based tech companies its product and sales actually fit.

Go deeper

Market Size: What is TAM, SAM, & SOM? carta.com · article A clear, no-nonsense primer on the three market-size numbers every founder gets asked about, with the bottom-up method that actually holds up in front of investors. Pick this over the SEO listicles because it comes from a platform that lives inside real cap tables and fundraises. Open carta.com →

Related terms

Also in Starting Up

See how founders actually handle this on Growing and marketing, part of the Starting Up hub.

eChai Partner Brands