HACKER Q&A
📣 rasulkireev

What is Product-Market Fit? Explain like I'm five


Just saw a guy on Twitter claim that he grew his client's revenue from $170k to $850k, because of product-market fit. (https://twitter.com/zachmstuck/status/1293570074054397952)

I was under the impression that product-market fit means how well your business idea meets the market demand. Well, how can then a consultant change that? Am I missing something?


  👤 pcannons Accepted Answer ✓
My framework for this as a failing entrepreneur so far, so don't take too seriously:

There are 3 steps going from 0 to 1: 1. problem/solution fit 2. product/market fit 3. business model fit

#1 determines whether or not you can make just a few people very successful in achieving some outcome they want where they are willing to pay you

#2 determines whether or not there's a market that highly demands your solution and you can convince them to pay you for it at scale

#3 determines whether the net profit and net profit growth YoY justifies working on the company

I think this tweet is saying the company already had product/market fit so scaling it was no problem.

Brian Balfour is someone who actually has some success. Here's his series for putting p/m fit in a different framework: https://brianbalfour.com/essays/product-market-fit-isnt-enou...