Eric Deeran spent $5 million on ads and found that TAM size controls what you pay per lead. A tiny B2B market means expensive leads; a huge B2C market means cheap ones. B2B can afford it because prices are higher.
And if there's anything I've learned after spending $5 million on ads, TAM is the biggest factor to how cheap your lead cost is. How many, how many people are in that TAM? If you're, if you're targeting a super, super small TAM, then your lead cost is going to be a lot more expensive than if you were targeting a huge B2C market, right? So if you're going after a small amount of B2B companies, your lead cost is going to be more than if you just did like a large B2C company. And typically that works because you're charging a lot more money. And so you can justify the unit economics on that. But if you're going, you're typically making up for it in just sheer volume of people coming in. You're typically charging a lower ticket amount of money.
