This term refers to the potential revenue that a company can generate if it were able to capture 100% of its target market. TAM also includes an estimation of the size of a company's list building efforts, as larger lists typically lead to higher revenues. It is important for companies to regularly assess and update their TAM in order to best allocate resources and make strategic business decisions. By understanding their TAM, businesses are better equipped to set realistic goals and forecast future growth.

TAM can be segmented in a few ways, but the three most common methods are by geography, by customer type, and by product.

1. Geographic TAM is the total market opportunity for a company's products and services within a specific region or country.

2. Customer Type TAM is the total opportunity for a company to sell its products or services to a specific customer type, such as businesses or consumers.

3. Product TAM is the total opportunity for a company to sell a specific product or service.

Each of these segments can be further divided into smaller segments to get a more granular view of the market opportunity. For example, geographic TAM can be split into state, city, or even neighborhood level segments. product TAM can be segmented by product features, such as size, color, or function.

No matter how you slice it, understanding your company's TAM is critical to making informed decisions about where to allocate resources and how to grow your business.