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• What is market sizing?

☝️Bottom-up methodology

Based on the number of units sold and the price.

<aside> 🔢 Formula:

Annual ARPU = Number of transactions per year x Pricing

*ARPU = Average revenue per user (per year).

Market size = Annual ARPU*** x** Number of potential customers

• Example </aside>

Market size calculator

**👇Top-down methodology

Based on the size of a large market, that includes your market.

<aside> 💡 Formula: TAM = ****Total market demand

SAM = The portion of TAM that best fits your service/product

SOM = The portion of SAM you expect to capture

• Example </aside>

⚖️ Pros and Cons

<aside> 🦄 Template generated by Appolica | Startup Studio

If you found this Market Sizing template useful, be sure to explore our Miro Workshop on the topic as well!

Let’s Connect: LinkedIn email: [email protected]

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