How many inbounds per month is good?
Few agency owners know the answer to this question. 👇
How many target businesses are in your vertical market?
Translation:
How many total plumbing businesses are in the US that have a problem you solve?
(For agencies who target plumbers)
Side note: This metric has many names, including Total Addressable Market (TAM), Total Relevant Market (TRM), Serviceable Available Market (SAM). Side note #2: Yes--I know these are all different but related metrics--I don't want to get into a war of definitions right now.
Here's the thing...
Knowing the number of target businesses in your vertical market is critical.
How else do you answer the following questions:
- How many inbounds per month is good? (5% of your vertical market is actively buying per quarter)
- When should we launch the next vertical? (when 3-5% of your vertical market are clients)
- When should we raise our prices? (also when 3-5% of your vertical market are clients)
- How many businesses should we target with our outbound?
- ...and more.
Good news: If you don't already know the number of target businesses that are in your vertical market, it's not hard to get started. One of my favorite sources for this type of data is IBIS World. Check them out!
CQ
