1What is Product-Market Fit?
Product-market fit means being in a good market with a product that can satisfy that market. It's the moment when your product becomes a must-have, not a nice-to-have.
Signs you have PMF: organic growth, high retention, customers actively recommending you, people get upset when you're down.
Signs you don't have PMF: constant churn, sales cycles that never close, users try it once and disappear.
2The Sean Ellis Test
Ask your users: 'How would you feel if you could no longer use this product?' If 40%+ say 'very disappointed,' you likely have PMF.
This metric matters because it measures emotional attachment, not just usage. Usage can be habitual; disappointment reveals value.
Survey at least 40 users who have experienced your core value proposition at least twice.
- Focus on users who've had a complete experience with your product
- Segment responses by user type to find where you have strongest fit
- Ask follow-up questions to understand the 'why'
3Finding Your First 10 Customers
Your first 10 customers are crucial. They'll shape your product, provide case studies, and become your first advocates.
Start with people you know who have the problem. Warm intros convert at 10x the rate of cold outreach.
Do things that don't scale: personal onboarding, white-glove service, be available 24/7. Learn everything about their needs.
4Iterating to PMF
PMF is rarely found on the first try. Plan for iteration cycles.
Talk to users constantly. The feedback from users who churned is often more valuable than from happy ones.
Focus on one segment first. It's easier to expand from a stronghold than to be mediocre everywhere.
- Set a cadence: talk to 5 users per week minimum
- Build feedback loops into your product
- Track the Sean Ellis score monthly