Why TAM Is the Wrong Way to Choose What to Build
Dylan argues you can't design your product strategy by always sorting for the biggest total addressable market. At Figma's start, data said there were only ~250,000 designers in the world, which would have killed the idea. They bet on the trend instead: as software proliferates, design becomes how you win or lose, so the number of people who care about design keeps expanding the market.
- Bureau of Labor Statistics showed ~250,000 designers when Figma started
- No data supported designers being a big market at the time
- They bet on the trend, not the current TAM, and the designer count exploded
- Design became the differentiator, pulling more people into the design process
- Go from strength to strength rather than chasing the next biggest TAM
“you can't constrain by always sorting designing by TAM we learn that very much from Figma”
“design is now the differentiator. It's how you win or lose.”