Product-market fit isn't just growth; it's an extreme market pull where customers buy your product despite its imperfections. The ultimate signal is when deals close quickly and repeatedly, with users happily ignoring missing features because the core value proposition is so urgent and compelling.
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Product teams often fear showing prototypes because strong customer demand creates pressure. This mindset is flawed. Having customers eager to buy an unbuilt feature is a high-quality signal that validates your roadmap and is the best problem a product manager can have.
You've achieved product-market fit when the market pulls you forward, characterized by growth driven entirely by organic referrals. If your customers are so passionate that they do the selling for you, you've moved beyond just a good idea.
Unlike traditional software where PMF is a stable milestone, in the rapidly evolving AI space, it's a "treadmill." Customer expectations and technological capabilities shift weekly, forcing even nine-figure revenue companies to constantly re-validate and recapture their market fit to survive.
Chasing ten $10k deals over one $100k deal is a mistake. Smaller deals attract clients who nickel-and-dime you, don't fully buy into the vision, and provide distracting feedback. A single large deal provides a committed partner who will help guide your product roadmap.
Winning accolades like Product of the Day/Week/Month provides an initial user spike but doesn't guarantee product-market fit. True PMF is indicated by sustained, accelerating organic word-of-mouth growth, not a launch-driven bump that later flattens out.
A core investment framework is to distinguish between 'pull' companies, where the market organically and virally demands the product, and 'push' companies that have to force their solution onto the market. The former indicates stronger product-market fit and a higher potential for efficient, scalable growth.
