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Example 1: Software company Based on market research, this company finds that its niche software could serve up to 30,000 clients in North America. Because their average account value is $5,000 per year, they calculate their TAM revenue by multiplying 30,000 potential clients by $5,000, arriving at $150 million per year.
For example, in my own experience as a founder: Before we enter into a new agreement with our freelancing clients we go through a deep-dive discovery process to better understand what matters most to them. You may use a Gmail client to stay productive and keep in touch with your clients. Need a proof point?
Airbnb and Dropbox are textbook examples of how growth hacking can transform a business from a niche offering into a household name and market leader. For example, if you run a software company, talking to clients at a trade show might put you in touch with the right audience. Slack started with a minimumviableproduct.
Niche businesses Instead of appealing to the mass market, a niche business caters to a smaller, more defined market. You target certain kinds of customers with specialized products or services that meet specific needs — things that larger companies have overlooked. Bureau of Labor Statistics.
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