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What it feels like when you've found product-market fit

by
Lenny Rachitsky
Lenny's Newsletter
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The founders of 25 of the most iconic companies in the industry provide insight as to when and how they first knew they found product-market fit.

Biggest Takeaways

  • Market “pull” comes in many forms
    • An inflection in organic growth
    • Customers asking to pay for the product before you ask
    • Users flip from being excited about what you have to mad about what you don’t have
    • Customers complaining when your site goes down
    • People using the product even when it’s broken
  • About half of these companies found PMF immediately after launch, but half spent months or years iterating to get there:
    • Netflix: 18 months
    • Segment: 1.5 years
    • Airbnb: 2 years
    • PagerDuty: 2 years
    • Superhuman: 3 years
    • Amplitude: 4 years
  • The intensity of the pull is a factor of the fit (how good your product is at solving the user’s problem) AND initial market size (is it niche or broad).

Three Things Needed for True Product-Market Fit

  1. Make a product that people want
  2. Make a profit delivering this product to people at scale
  3. Find and keep these people, sustainably

Three Signs That You’ve Found Product-Market Fit

  1. Sudden and significant pull from the market
  2. Steady and compounding pull from the market
  3. Hitting a meaningful milestone that proves the idea is working
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