Now let's try to understand this with a specific example. Let's assume that we are launching a platform for webinars and online conferences. Here are the initial data:
product: platform for conducting webinars and online conferences;
target market: companies conducting online events (including educational institutions, corporate trainings, marketing webinars, etc.);
sales model: the platform sells subscriptions to companies armenia whatsapp number data that pay for access to conduct webinars (annual subscription);
subscription cost: let's say 50,000 rubles per year.
Now let's look at how to calculate each metric for such a business.
What is PAM
In our webinar platform example, these are companies that regularly organize online events in our country. This includes training companies, educational institutions, large corporations, and small advertising agencies. Let's assume that there are only 50,000 such companies in the country, and according to forecasts, their number will increase by 15% over the next three years, which will amount to 57.5 thousand companies.
In this case, RAM = 57,500 companies x 50,000 rubles = 2.875 billion rubles.
This is the total market capacity for our product.
What is TAM
TAM (Total Addressable Market) is the total market that exists today. Roughly speaking, this is PAM without taking into account growth in the next three years. For TAM, it is enough to simply look at how many companies are currently on the market and multiply this number by the average check.
That is, TAM = 50,000 companies x 50,000 rubles = 2.5 billion rubles.