Yes, sure, a good answer which amounts to: transaction costs are higher than the variance. That's the answer they should have given Paul.
TAM answers the question, "In the best of all possible worlds, how much money would you make?"
As an entrepreneur you'd better have a good, if not totally accurate, answer to that question. At the very least it shows investors how well you've segmented and sized your target market.
Comments
Yes, sure, a good answer which amounts to: transaction costs are higher than the variance. That's the answer they should have given Paul.
TAM answers the question, "In the best of all possible worlds, how much money would you make?"
As an entrepreneur you'd better have a good, if not totally accurate, answer to that question. At the very least it shows investors how well you've segmented and sized your target market.