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The Internet Compass

Product

Product-Market Fit

Product-market fit is the state in which a product meets real, urgent demand in a specific market, evidenced by strong retention, organic growth and customers who resist giving the product up.

Common signals include flattening retention curves, unprompted word-of-mouth acquisition, and support volume driven by usage rather than confusion.

Fit is market-specific: a product can have clear fit with startups and none at all with enterprises, and treating those as one market is a frequent strategic error.