SOM is the short-term financial goal. Past earnings are a good indicator of what one can accomplish in the short term.
If you had their direct competitor’s market size and earnings, you can proportionally size Eventbrite’s earnings based on its market size.
Benchmarking against comparable companies can be useful. For example, WeWork’s competitors in the short-term commercial office lease market knew something was financially wrong with WeWork because their numbers were bizarrely different from everyone else’s.
Experts can help size your market, and may have proprietary models based on these and other methods.
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Correct! Living Social sells experiences (you can think of them as “tickets” to experiences) and takes a percentage of the proceeds.
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Correct! We use TAM to start high-level, strategic discussions.
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Correct! TAM is the revenue opportunity available for a product, disregarding all constraints. If every human had an Eventbrite window pop up in front of them, who would buy and how much would they spend?
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Correct! Each number gets progressively smaller.
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Correct! This is the difference between SAM and SOM.
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Correct! Ticketmaster sells tickets to the public for a percentage of the proceeds.
