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A serviceable available market (SAM), or serviceable addressable market, is the portion of the total addressable market (TAM) that you can reach with your current business model. It’s a dollar amount—the number of serviceable customers times their average value—that can tell you and your investors the potential for your business.
You’ll never be able to capture the entire TAM, and the SAM defines the segment that’s the best fit for your business. For example, you can eliminate parts of the TAM that aren’t a good fit based on geographic, regulatory, technological, and marketing limitations.
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