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Glossary

Product-market fit (PMF)

Product-market fit is the point at which a product meets a real need well enough that the right customers keep using it, come to rely on it and pay for it without being pushed. It shows up in behaviour, not in what customers say.

What it means

Fit is easy to claim and hard to prove. Friendly early users, usage that only happens when prompted, and payments that come from a relationship all look like fit and aren't. The signals that count are the ones politeness can't produce: people returning on their own, relying on the product, bringing others and renewing.

One widely used measure is Sean Ellis's survey question: how would you feel if you could no longer use the product? It's a useful reading, and one signal among several rather than a verdict.

How we use it

Own venture otlo has customers paying real money, which proves willingness to pay. It doesn't yet prove product-market fit, and we'll only claim that once retention data supports it.

Go further

The five rungs of evidence: use, return, rely, refer, pay.

PMF Signal Ladder

Published 28 September 2026. All terms

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