Published models
Browse and explore business models built with Paths.
Market Sizing
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.
Go-to-MarketUpdated Apr 29, 2026
Tiered Usage Pricing
In the range of pricing models, tiered pricing sits closer to being aligned with the customer than flat pricing. This is because the customer gets to benefit from economics of scale. The more they use the product, the cheaper their cost-per-usage. Tiered usage pricing is a common pricing model in software. In many cases, the Tier 1 Price is FREE, with higher tiers combining a fixed monthly fee alongside the additional usage pricing. If you decide to implement tiered usage pricing in your business, anchor the tier limits to median customer usage and the tier prices to your target gross margins.
PricingUpdated Apr 29, 2026