Product-Market Fit: Experience & Data

The article defines Product/Market Fit as a shift from struggling to win each customer to being overwhelmed by demand, and it argues that this shift shows up as a linear growth curve with a sudden change in slope rather than exponential growth. The author, who says he built several companies and angel-invested in dozens more, sets the threshold at cancellation under 3% per month for B2B or 5% per month for B2C, and at least $20,000 per month in revenue or at least 200 new weekly active users added per month. Examples cited include ConvertKit, Pallyy, HubSpot, Slack, Facebook and Airbnb, with the article arguing that high cancellation caps growth, as shown by Buffer's leveling off in 2020.