Product/Market Fit
Introduction to Product/Market Fit
Product/Market Fit is the point at which a product satisfies the needs of a specific market segment. Achieving PMF is critical for a startup's success.
The Only Thing That MattersThis is the first article written about the concept of product / market fit (PMF). Marc Andreessen explains how the one thing that matters more than team, market, or product is one thing: "being in a good market with a product that can satisfy that market."
Tactics, Metrics, & Benchmarks to Get To PMF
Tactics for getting to PMF include identifying the target customer, creating a minimum viable product, measuring customer engagement, and iterating based on feedback. Metrics like customer acquisition cost and lifetime value can help track progress.
How Superhuman Built an Engine to Find Product/Market FitRahul provides a deep case study (via his product, Superhuman) on how to iterate your way to PMF. It includes a clear 4-step process, and a metric threshold based on the question, "How would you feel if you could no longer use [product]?"
How to Tell if You Have Product/Market FitMerci establishes a variety of clear metrics for product / market fit: NPS above 60, and retention via MAU or WAU depending on the" reasonable human behavior you’re looking for."
- Zero to Product/Market Fit (Presentation)
Andrew reviews how to make it easier to find PMF by looking at products and markets that are the most conducive to PMF.
The best metric for determining quantitative product market fitFor multiple-use / subscription products, Jeff describes why and how cohort retention can be more meaningful for PMF than NPS and other survey-based metrics.
What it feels like when you've found product-market fitLenny interviewed the founders of 25 iconic technology companies, and discovered that there are 3 ways that PMF can be "felt": 1. Sudden and significant pull by the market 2. Gradual but compounding pull from the market 3. Hitting a milestone that proves it's working
From One-Time to Continuous PMF
Continuous PMF involves regularly revisiting customer needs and adjusting the product accordingly. This requires a culture of experimentation and a willingness to pivot.
The Never Ending Road To Product Market FitBrian disagrees with one aspect of Marc's initial definition: that product / market fit is a singular milestone. Rather, product / market fit is a continuous process "for one reason - your market doesn’t sit still."
Tweetstorm on Stages of Product/Market FitElizabeth explains how startups go through PMF loops across stages, e.g. getting to Series A benchmarks versus going from Series B to Series C.
PMF Case Studies
These case studies show how companies achieve PMF by focusing on customer needs, iterating quickly, and using data to inform decisions.
The Sharp Startup: When PayPal Found Product-Market FitPayPal's path to product/market fit involved listening to customers until they found a niche with extreme product metrics. The PayPal team then focused all of their effort on that niche - servicing eBay sellers.
Bonus Content
Bonus content includes resources for further reading on PMF, such as books and podcasts, as well as tips for avoiding common PMF mistakes.
10 Places to Find Product-Market FitGigi describes 10 specific places that provide fertile hunting ground for founders to find PMF.
Twitter Thread on Definitions of Product/Market FitThe replies in this Twitter thread provide alternate definitions of product / market fit.
