Glossary

What Is Product-Market Fit?

Product-market fit (PMF) is the state where your product satisfies a strong market demand — users actively want it, retain, and recommend it without you having to push.

Marc Andreessen defined product-market fit as "being in a good market with a product that can satisfy that market." It's the point where growth becomes pull rather than push — users come back without prompting, word of mouth spreads, and churn is low because people genuinely need the product.

Signs you have PMF:

  • Users are disappointed if they can't use the product ("very disappointed" >40% on Sean Ellis test)
  • Retention curves flatten instead of declining to zero
  • Word-of-mouth is measurable — users refer others unprompted
  • Support requests are about desired features, not basic usability failures
  • Revenue is growing without proportional increase in sales effort

Signs you don't have PMF yet:

  • Users sign up but don't return
  • Churn is high despite product improvements
  • Sales conversations require heavy explanation of the problem (the market doesn't feel the pain)
  • Activation metrics are low — users reach signup but not the core value moment

PMF before scale: Do not invest in paid acquisition or scale the team before you have evidence of PMF. Pouring money into growth before PMF is the fastest way to burn runway without results.

How to find PMF faster: Ship the MVP, talk to every user personally, measure retention weekly. The feedback from your first 10 paying users is worth more than any market research report.

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