How you know when you’ve hit product-market fit

From THE PMARCA GUIDE TO STARTUPS Part 4: The only thing that matters by Marc Andreessen:

Product/market fit means being in a good market with a product that can satisfy that market.

You can always feel when product/market fit isn’t happening. The customers aren’t quite getting value out of the product, word of mouth isn’t spreading, usage isn’t growing that fast, press reviews are kind of “blah”, the sales cycle takes too long, and lots of deals never close.

And you can always feel product/market fit when it’s happening. The customers are buying the product just as fast as you can make it — or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company checking account. You’re hiring sales and customer support staff as fast as you can. Reporters are calling because they’ve heard about your hot new thing and they want to talk to you about it. You start getting entrepreneur of the year awards from Harvard Business School. Investment bankers are staking out your house. You could eat free for a year at Buck’s.

5 thoughts on “How you know when you’ve hit product-market fit

  1. In the case of internet services the market will tell you how well you’re faring even faster. And since user sentiment can be measured instantly with analytics, I’ve become a great believer in fail-fast projects. I.e. instead of betting on large and heavily analyzed killer features, constantly test small features that can be prototyped and launched quickly, be prepared to have most fail in user engagement metrics and end up with a few nuggets that were validated by the market and that can later be broadened to major features.

  2. Pingback: Product-market fit can be hard to spot | A Founder's Notebook

  3. Pingback: Obvious, but forgotten: the best way to lower customer acquisition costs | A Founder's Notebook

  4. Pingback: Four myths about product-market fit | A Founder's Notebook

  5. Pingback: What’s the best general advice on product market fit? | BrainQuilt

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s