Definition
The state where a product satisfies strong market demand well enough that growth becomes a matter of scaling distribution rather than fixing the offering.
Why it matters for growth
Pouring money into acquisition before product-market fit almost always fails, because the product cannot retain the customers it acquires.
Example
A founder notices organic word of mouth and unprompted customer requests to pay more, both classic signals of early product-market fit.
FAQ
- What is Product-Market Fit?
- The state where a product satisfies strong market demand well enough that growth becomes a matter of scaling distribution rather than fixing the offering.
- Why does Product-Market Fit matter for growth?
- Pouring money into acquisition before product-market fit almost always fails, because the product cannot retain the customers it acquires.
- What is an example of Product-Market Fit?
- A founder notices organic word of mouth and unprompted customer requests to pay more, both classic signals of early product-market fit.