potential revenue

How to Calculate Potential Revenue?


Calculating potential revenue involves several steps. First, identify the total addressable market (TAM), which represents the overall demand for your product or service. Next, estimate your market share, i.e., how much of the TAM your business can realistically capture. Finally, multiply your market share by the average revenue per customer (ARPC). The formula is:
Potential Revenue = TAM x Market Share x ARPC

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