Q:How do I know if I have product-market fit?

Product-market fit is best read as a spectrum of growing confidence rather than a single yes-or-no moment, and the clearest evidence is revealed behavior: retention that levels off and growth that comes from other users⁵¹. Look for pull from customers rather than push from your own effort³.

01Retention and usage signals

• Track cohorts over time: if retention curves flatten rather than decline to zero, a group of users is finding durable value¹⁵.
• Define "active" by your core user action, and report free and paying users separately, since blended numbers can hide real behavior¹⁰.
• Acquisition that outpaces paid spend is a sign users recommend the product themselves¹⁵.

02Customer sentiment signals

• Survey users on how disappointed they would be if the product disappeared; Sean Ellis's benchmark is 40% "very disappointed"⁵¹.
• Watch for pull such as customers asking to pay early, word of mouth, or complaints during downtime⁶.

03Caveats

• Fit alone is not enough; you must also deliver the product profitably at scale⁶.
• Customer interviews on recent specific experiences give a more reliable read than general opinions⁸.