Market Sizing

Model Structure

Drivers (4)

Total PopulationARPUTarget Segment RateCapture Rate

Outputs (3)

TAMSAMSOM

Determining the size of the pie your company is taking a slice out of can quickly become an exercise in grandeur. That being said, having a standard, top-down market sizing model will often be one of the first steps when analyzing a new opportunity. Definitions: TAM – Total Addressable Market: the full revenue opportunity if you captured 100% of every potential customer globally. SAM – Serviceable Addressable Market: the slice of TAM you can realistically reach given your geography, segment focus, and go-to-market. SOM – Serviceable Obtainable Market: the portion of SAM you can realistically capture in the near term given competition and execution. Like any standard funnel, the primary drivers are the volume at the top and the throughput at each level. Let this be a check against your proposed investment in a project rather than your pricing strategy.

Other Paths

FTE vs. Contractor

Most teams already have an opinion on this trade-off. Few have done the math. This model converts a salary into what your company actually pays, making the FTE and Contractor costs genuinely comparable. The output isn't just a cost comparison. It's the starting point for a broader conversation about where full-time commitment is worth the premium. Run it twice: once with the low-end of your compensation bands, once with the high-end. The range between those two outputs is your uncertainty — and your negotiating room.

Updated Apr 29, 2026

Real Estate

In Real Estate, the revenue drivers are the units available for rent, along with the sale value of the asset. Market dynamics affect these drivers more regularly than other business models. This creates a need to stay up to date & re-run your numbers when there's a shift. Use this model to know when is a good time to hold the property and collect rent or entertain offers to sell.

Updated Apr 29, 2026

Sales-Led Growth

Every company needs a Go-to-Market motion. Do you know what yours runs on? If your Sales team is leading the charge, then surprise, your company relies on Sales-Led Growth (SLG). Successful SLG companies always have two things in common: targeting high-quality Leads, and high Avg. Contract Value offers. Conversion at each stage of the funnel is important, but a SLG company runs best when the bookends are optimized.

Updated Apr 29, 2026

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