Business & Retail Tech

What is Product-Market Fit?

Quick answer

The point at which a product satisfies a strong market demand, so customers actively want, use, and recommend it.

Product-Market Fit, explained

The phrase was popularized by investor Marc Andreessen, who described it as being in a good market with a product that can satisfy that market. Before product-market fit, startups struggle to attract and keep users no matter how hard they push. After it, demand starts pulling the product forward.

Signs of product-market fit include strong retention, users returning without reminders, organic word-of-mouth growth, and customers who would be very disappointed if the product disappeared, a question used in a well-known survey method. There is no single precise threshold, and fit can be lost as markets change. Founders are often advised to focus on finding product-market fit before scaling marketing or hiring rapidly.

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