Where to start and why…
Thinking About TAM in Hiring
In SaaS businesses, the acronym TAM tells you how big the opportunity is. We use it to ask: Is this market big enough to build a business here?
I learned a few years ago that we can borrow that concept for hiring. Because every role also has a Total Addressable Talent Market. And it kind of changes how you go about sourcing potential candidates for your vacant roles.
For example:
- A receptionist has a big TAM — The role has a low barrier to entry, meaning there is a high volume of potential candidates.
- A brain surgeon has a tiny TAM — The barrier to entry is very high due to the qualifications and experience needed, which means that there is a limited pool of talent.
This isn’t a hard concept to understand, but thinking about it this way gives you a better framework for thinking about a hiring strategy.
Some of the key hiring metrics are kind of tied to this in a way.
- How long will it take me to hire someone? A bigger TAM should mean that there are more options, so a quicker hire is likely. And the reverse is also probable.
- How much will I have to pay? A smaller TAM most likely means that your TAM is in demand, meaning you may have to pay more, or offer better terms. Particularly if they’re already working.
This is all simple supply and demand, right?
So, instead of treating every role the same, your approach is best when it’s based on how wide (or narrow) your TAM really is.
This matters because misjudging your talent TAM leads to;
- Unnecessary frustration from engaging with the wrong candidate profile,
- Spending more time than originally planned on hiring,
- The onset of hiring fatigue, which I’ve seen lead to poor hiring decisions, in a bid to just end the process,
- The rest of the team covers the work that this role would do, leading to potential burnout.
Not to forget that the longer a role is open, the higher the chance that the market may perceive a problem with you as the employer.
Like a house that won’t sell, people wonder what’s wrong with it.
So, the sourcing and hiring funnel for different TAM markets looks very different.
Two Versions of the Hiring Funnel
The levers to pull for attracting and screening candidates in both of these TAMs are also quite different. It’s also not unreasonable to say that the two groups probably want different things from work because they’re either at different career stages or from different socio-economic backgrounds.
Or, of course, maybe both.
The value propositions and, therefore, the language of any inbound or outbound advertising will be vastly different and nuanced.
Large TAM = High-Volume, Low-Context
Best for:
- Roles with predictable workflows
- Need to hire at scale
- Situations where drop-off is acceptable
Tactics:
- Programmatic job ads (Indeed, Seek, LinkedIn Easy Apply)
- Bulk email or CRM outreach with light personalisation
- Clear, simple application flows (1-click apply, short forms)
- Funnel-based assessment (e.g. video screen, basic testing)
Example: SDR role at a mid-stage SaaS
- Ad: “We’re growing our sales team in Sydney! Great base + uncapped OTE”
- Process: Ad + screening Qs > async video screen > sales task > panel interview
- Channel: LinkedIn + Seek ads. Generally all inbound
Common Pitfalls:
- Trying to stand out without a strong brand
- Poor candidate experience at scale
- Overwhelming internal teams with noise
Small TAM = Low-Volume, High-Context
Best for:
- Critical early hires (founding engineer, first marketer)
- Specialist or rare-skill roles
- When your story and mission are your biggest assets
Tactics:
- Warm referrals and founder-led messages
- Direct messages referencing specific work or shared values
- One-pager or Notion doc on “Why now, why us, why you”
- Coffee chats before formal interviews
Example: Founding Designer at an early-stage startup
- DM: “Hey, loved your recent work on the XYZ project. We’re building a tool that needs world-class design thinking from day 1. Would you be open to a quick chat?”
- Landing page: Personalised doc outlining the mission, role, team, and product vision
- Process: Intro chat > async design conversation > working session with founder
Common Pitfalls:
- Doing this without clear alignment or prep
- Ghosting leads who expect high-touch follow-up
- Assuming you can scale it without losing the human element
Strategy Notes
Hopefully, this all makes a bit of sense, but do let me know if any of it is confusing. Here’s my high-level takeaways.
- Pick the right model for the role. Hiring a customer service rep and a CTO should not follow the same process.
- Don’t mix signals. A job ad written like a form letter but followed by 5 rounds of interviews will cause whiplash.
- Build trust differently. High volume = fast, clear process. Low-volume = credibility and connection.
- Know your constraints. High-context works well for your first 5 hires. High volume helps when you’re hiring 5 of the same person.
This TAM idea lets you think more tactically about how many qualified people might exist for your role, then choose tactics that match reality. High-volume when you have options, high-context when you don’t.
But don’t overthink it. Do the searches, count the profiles, pick your approach, and start reaching out. The worst hiring strategy is the one you never execute.
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Thanks for being here, now on with the good stuff.
What I learned from speaking to Alex McClafferty
Alex McClafferty has sat on every side of the startup table — founder, acquirer, hiring manager, and now advisor. He’s built products at scale (leading Canva’s China expansion), survived an acquisition (his startup WPCurve to GoDaddy), and coached 70+ founders through the chaos of early-stage growth.
What strikes me about Alex’s perspective is how grounded it is in reality, not theory. He’s navigated the full spectrum of startup challenges and emerged with a healthy scepticism about conventional wisdom. His approach to hiring, product development, and founder coaching cuts through the noise to focus on what actually moves the needle.
Captions are auto generatedPlayIt’s me ☝️
Here are three things that stuck with me. Watch the full interview here
1. Influence matters more than frameworks
“I look for people that have that X factor — influence is one of them for product management and probably execution for a lot of the other roles.”
Alex challenges the traditional product manager checklist. Instead of focusing on whether someone can write PRDs or run ceremonies, he looks for people who can actually get things done when there’s no clear process.
This resonates because I’ve seen too many hires who look perfect on paper but crumble when they need to navigate ambiguity or get buy-in from skeptical stakeholders. The ability to influence without authority isn’t just nice to have — it’s essential when you’re building something new.
2. Case studies reveal more than you think
“Any idea that I have from the data they’ve given me is something they’ve probably already pursued. I need to come at it from a different perspective.”
Alex’s Canva interview story is fascinating — not because he got lucky and pitched something they were already working on, but because of his reasoning process. He assumed the team was competent and had already explored obvious solutions, so he looked for adjacent opportunities.
That kind of thinking — assuming intelligence in others rather than looking for gaps to exploit — shows intellectual humility and strategic thinking. It’s the difference between someone who sees problems and someone who sees systems.
3. Prepare for post-acquisition reality
“You need to be ready to be sacked the next day. And you need to be ready to have your team sacked the next day.”
This is brutal honesty that most advisors won’t give founders. Alex strips away the romantic notion of acquisition as validation and forces founders to confront the mathematical reality: you’re now a line item on a spreadsheet, not the visionary leader of your destiny.
What I appreciate is how he frames this as preparation, not pessimism. By setting realistic expectations upfront, founders can make better decisions about whether to sell, how to structure deals, and what to do with their lives afterward.
Final thought
Alex brings a founder’s urgency with an operator’s pragmatism. He’s direct without being dismissive, experienced without being jaded.
“I’m very biased and my personal style is just to figure out what’s the most efficient way to get a problem solved.”
That bias toward action over process — combined with real empathy for the human cost of startup life — makes him exactly the kind of advisor every founder needs: someone who’s been there and will tell you the truth, even when it’s uncomfortable.
The List
🧵 10 Good To Follow Twitter Threads About Startups
- Shreyas Doshi – Product Management Wisdom https://twitter.com/shreyas Legendary for deep, practical PM insights.
- Gokul Rajaram – Operating Advice https://twitter.com/gokulr Known as the “godfather of ops” – short and sharp.
- Andrew Chen – Growth and Marketplace Strategy https://twitter.com/andrewchen Partner at a16z, drops growth knowledge.
- Lenny Rachitsky – Frameworks Galore https://twitter.com/lennysan Usually posts summaries of best ideas in product/startups.
- Julian Shapiro – Startup Growth https://twitter.com/Julian Curated tactics and frameworks.
- Tomasz Tunguz – SaaS Metrics and VC https://twitter.com/ttunguz Quantitative breakdowns and data-rich threads.
- Delian Asparouhov – Wild takes, startup lore https://twitter.com/zebulgar If you’re into Silicon Valley chaos.
- Bri Kimmel – Founder Lessons & Fundraising https://twitter.com/briannekimmel Great voice for early-stage founders.
- Packy McCormick – Future Tech Threads https://twitter.com/packyM Big ideas and futuristic trends.
- Alex Garcia – Growth Threads https://twitter.com/alexgarcia_atx Quick-hit marketing and growth hacks.
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Weekly newsletter drops
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Need hiring help?
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Simon
