What Is Product-Market Fit (PMF)?

The degree to which a product satisfies strong market demand.

The degree to which a product satisfies strong market demand.

Product-market fit (PMF) occurs when your product satisfies a strong market demand. It's the point where customers are actively seeking your solution, retention is strong, and growth becomes more organic.

The most common quantitative measure is the Sean Ellis test: if 40%+ of surveyed users say they'd be 'very disappointed' without your product, you likely have PMF. Other signals include strong NRR, low churn, and organic referrals.

Achieving PMF is the single most important milestone for a startup. Before PMF, focus on learning and iterating. After PMF, focus on scaling distribution and optimizing unit economics.

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