How to Calculate Total Addressable Market (TAM) for B2B Outbound
Understanding your TAM is the essential first step in any outbound sales campaign. Without knowing how many viable accounts exist in your jurisdiction, sales teams risk burning through their market with unfocused messaging or under-investing in mailbox infrastructure.
1. TAM (Total Addressable Market)
The 100% maximum demand for your software or service if you had zero competition and unlimited budget. Formula: Total Accounts × ACV.
2. SAM (Serviceable Addressable Market)
The subset of TAM that fits your exact geographic, legal jurisdiction, technology stack, and company size filters (Skill 01/03).
3. SOM (Serviceable Obtainable Market)
The realistic percentage of SAM your sales team or autonomous AI squad can capture within 12-24 months.