How do you know if you have product market fit?

Determining if you have product-market fit (PMF) can be approached through several indicators and metrics, as discussed by various experts in the field:

1. User Disappointment Measure: Rahul Vohra introduces a method where PMF can be measured by asking users how they would feel if they could no longer use the product. If 40% or more express that they would be very disappointed, it suggests initial PMF 1.

2. Word of Mouth: A strong indication of PMF is when users spontaneously recommend your product to others. This organic spread is a reliable sign of genuine user approval and interest. For instance, if new users report hearing about the product through friends or colleagues, that's a significant marker of PMF 2.

3. Market Pull: When the market demonstrates a strong demand for your product, such that sales or sign-ups occur quickly and repeatedly, this indicates a robust PMF. This could be seen in both consumer behavior and immediate traction in sales or growth metrics 3.

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     Measuring Product Market Fit

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     Achieving Product Market Fit

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     Trial and Fit

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     5

     Product Market Fit Indicators

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4. Customer Reactions: Andy Rachleff highlights that if upon withdrawing a product (like ending a trial period), customers react strongly or demand continuation, it suggests a deep need for the product, indicating PMF 4.

5. Growth Metrics: Growth in user base or revenue, especially when driven organically, can signal PMF. Exponential organic growth, typically through word of mouth, implies that users are delighted by the product, which is a strong endorsement of PMF 5.

Each of these methods provides a different perspective, and often a combination of these indicators is used to confidently assert the presence of product-market fit.