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PMF (Product-Market Fit)

Validated product-market alignment.

Product-Market Fit (PMF) is the point where your product perfectly meets the needs of a large enough market. It's the Holy Grail of every startup. Without PMF, scaling is impossible and dangerous. Marc Andreessen defined it as: "Being in a good market with a product that can satisfy that market."

Concrete Example

Signs of PMF: organic growth, low churn, customers who recommend, demand exceeding supply.

The Sean Ellis test: >40% of users would be "very disappointed" to lose the product.

Tips

  • The Sean Ellis test (40%) is a good indicator
  • Listen to your best customers, not all customers
  • Retention is the best PMF indicator
  • Iterate quickly until you find PMF

Common Mistakes

  • Confusing enthusiastic early adopters with PMF
  • Scaling before truly having PMF
  • Ignoring negative signals (churn, low NPS)

Related Terms

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