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TAM or "Total Available Market" as a KPI is subjective BULLSHIT. Let's discuss.

My company recently announced that it will start tracking TAM as a KPI for sales. Now, if I sold a product, maybe... but a service like consulting? SO FUCKING SUBJECTIVE. There are so many variables to the usage of consultants for each company, department, division, etc. that some KPI's are just better left NOT being KPI's, TAM is certainly one of them in my industry. What is a bullshit KPI that your company tracks on the reg that you feel is ridiculous made-up bullshit?

🧒 Sales Management
πŸ“Š Metrics
6
braintank
Politicker
+6
Enterprise Account Executive
I don't get it. How are they using TAM as a metric? Isn't it a function of territory??
TheRealPezDog
Notable Contributor
+9
Account Manager
Not in my case.Β  My company doesn't do "territory" it is simply divided by account so my "TAM" in this case, would be the "total number of IT consultants being used at any given time for an individual account"

This means that I basically can make the number up if I wanted to and just tell them that (for example) I own 10 out of the 20 total consultants and thus 50% TAM.Β  Weird, eh?Β 
Kinonez
Celebrated Contributor
+9
WR Enthusiast
TAM can be useful in certain markets but definitely not all!! It's important to understand how and when TAM works, or you'll kill everyone's Quota in a flash!
CaneWolf
Politicker
+12
Call me what you want, just sign the damn contract
How is that going to work? Legit curious.
BCD
Politicker
+6
BDR
Damn, good luck.. TAM ruined my life at my last job
Lambda
Politicker
+6
Sales Consultant
Depending on the market there may be data to back the TAM so i wouldnt say its completely subjective.....
TheRealPezDog
Notable Contributor
+9
Account Manager
Yeah, definitely in some industries it is super useful, but if my company asked me to β€œincrease my TAM” all I would really have to do is make up a lower number, in my case (not that I would lie) but if my job was on the line I’d definitely be tempted, especially being a 40/60 base/comp structure, we have a pretty low base salary but an enormous and unlimited ramping commission structure, I made 3600 in commission last WEEK.
CuriousFox
WR Officer
+11
Senior Account Executive
How are they actually defining it?
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