Don't get distracted by the vague goal of "achieving product-market fit." Instead, focus on tangible, measurable signals of traction: Are people buying the product? Is the messaging resonating? Do you have the right sales funnel? These concrete metrics provide actionable feedback that leads to success.
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Instead of setting early revenue targets, new products should focus on a more telling metric: getting a small cohort of sophisticated users to become obsessed. This deep engagement is a leading indicator of product-market fit and provides the necessary insights to scale to the next 50 users.
Product-market fit isn't a sudden switch but a palpable shift in momentum. As a founder, you feel the change from pushing against the current (hard selling with little traction) to suddenly being pulled by it (easier sales, inbound interest). This directional change in velocity is the clearest signal that you're onto something.
The true indicator of Product-Market Fit isn't how fast you can sign up new users, but how effectively you can retain them. High growth with high churn is a false signal that leads to a plateau, not compounding growth.
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.
For Ethic, the feeling of true product-market fit wasn't just hitting metrics, but the moment they helped an advisor win a major new client. The founder realized this success was a replicable playbook that could be repeated, creating a flywheel for growth. The metrics then followed this initial breakthrough.
Founders often create complex plans and documents to avoid the simple, hard, and uncomfortable task of selling. Just as getting stronger requires consistently lifting heavier weights, finding product-market fit requires consistently doing the core work of talking to customers and trying to sell.
Founders must distinguish between persistence and fighting a losing battle. If you constantly feel like you're pushing a boulder uphill to convince the market, you're on the wrong path. Genuine product-market fit feels like the market is pulling you, and your job is to sprint to keep up.
Sales are a vanity metric for product-market fit. The real test is having ~25 customers who have successfully implemented your product and achieved the specific ROI promised during the sales process. If you don't have this, you have a product problem, not a go-to-market problem.
The ultimate validation of product-market fit isn't retention or satisfaction scores, but the percentage of new revenue driven by customer referrals. When 30% or more of your new top-line monthly revenue comes from existing customers recommending your product, you've built something people genuinely love and need.
The unambiguous signal of Product-Market Fit (PMF) isn't a magic number in your analytics. It's when customer pull becomes so strong that it breaks your supply chain, logistics, and team capacity, forcing uncontrollable growth even without marketing spend.
