Chapter 1 of 15 · Finding Product-Market Fit
← The growth course
1. Finding Product-Market Fit
How to test for real customer pull earlyHow to pick a narrow niche to start inHow to launch a simple first version fastHow to learn from users and customersHow to read early signs of product-market fit2. Onboarding and Activation
How to structure onboarding as a storyHow to ask and use onboarding questionsHow to get users to the aha moment fastHow to decide how long onboarding should beHow to build quiz funnels for paid traffic3. Paywalls and Pricing
When to choose a hard paywall over freemiumHow to design a paywall that convertsHow to price annual and monthly plansHow to set, raise and localize pricesHow to run free trials and free tastes4. Business Models and Revenue
How to structure subscription tiersHow to keep a free tier that pays offHow to charge for usage and AI creditsHow to pair hardware with a subscriptionHow to add ads, affiliates and partners5. Retention and Engagement
How to measure retention honestlyHow to build habit loops that bring users backHow to use notifications and lifecycle messagesHow to reduce churn and handle cancellationsHow to build social loops and community6. Brand and Positioning
How to position against bigger incumbentsHow to name and describe your productHow to earn trust in high-stakes categoriesHow to borrow credibility from celebrities and experts7. Organic Content and Creators
How to find, vet and recruit creatorsHow to pay creators fairly and safelyHow to brief and manage creatorsHow to find and copy viral formatsHow to scale one format across many accountsHow to rank in AI search and SEO8. Paid, App Store and Viral Growth
How to make ads that convertHow to turn organic winners into paid adsHow to structure and scale Meta campaignsHow to tell if paid acquisition is profitableHow to win in the App StoreHow to build viral and referral loops9. Experimentation and Analytics
How to run trustworthy experimentsHow to judge test results correctlyHow to run more experiments fasterWhat metrics to track and how to define them10. Building AI Products
How to build for the models of tomorrowHow to design AI interfaces beyond chatHow to design AI agents people can trustHow to measure AI quality with evalsHow to control AI costs and pricingHow to build products with AI coding tools11. Teams, Hiring and Funding
How to hire people who thrive on ambiguityHow to organize small product teamsHow to run exploratory bets and kill themHow to work as a team with AI agentsWhen to raise money or sell your company12. Founder Principles
How to pick a mission worth building a company aroundWhy to trust your own judgment over the consensusHow to turn failure and setbacks into the next stepHow to learn from rivals and copy what works13. Choosing Where to Compete
How to make low cost your competitive advantageHow to create a market instead of fighting for shareWhy scarcity and brand can beat volumeHow to build an advantage that feeds itselfHow to attack a bigger rival where it cannot followWhen to stay focused on the core business14. Building and Leading the Company
How to hire great people and give them roomHow to align pay and ownership with the missionHow to keep your culture and standards as you growHow to build candor and fast decision-makingWhy leaders must stay close to the work and customersHow to choose and prepare a successor15. Capital and Deals
How to fund growth without losing controlHow to acquire companies and keep what makes them workWhat to do with cash: reinvest, buy back or holdWhy to keep a cash cushion and avoid heavy debtHow to structure ownership to protect your missionHow to negotiate deals that keep your leverage1 The bottom line
Start with the narrowest group that feels real pain and that you can reach, in a market where others already earn money. Winning a small group first gives you proof and a base to expand from.
2 Key takeaways
- Start from a real pain, not an app idea. People pay to fix pain, and you do not have to convince them they need it.
- Migraine Buddy makes over $50,000 a month from about 15,000 downloads a month

Steve P. Young, Migraine Buddy1:18.
- Migraine Buddy makes over $50,000 a month from about 15,000 downloads a month
- Pick a group so narrow it feels too small. Content converts better there, and few rivals copy what works.
- Knitting, ballet, and wrestling and MMA are examples

Canyon (Kenyon Prasad), Sideshift21:21. - Course Hero began with Cornell alone
Andrew Grauer, Learneo.
- Knitting, ballet, and wrestling and MMA are examples
- Choose a group you can reach and that can pay. A narrow group is no use if you cannot find it or it cannot buy.
- BoldVoice found working professionals beat college students

Anada Lakra, BoldVoice34:10. - Shotsy started with its founder's own Reddit group

Rik Haandrikman, RevenueCat14:40.
- BoldVoice found working professionals beat college students
- Enter a market where others already earn money. An empty market may mean nobody wants to pay.
- Look for one to three apps above $100k a month

Caleb Dean, Runafy54:06.
- Look for one to three apps above $100k a month
- Win the niche first, then expand to what is next to it. Starting broad and narrowing down is the harder route.
- Breathwrk started with breathing only and was acquired by Peloton for $2.2 million
Steve P. Young, Breathwrk9:12.
- Breathwrk started with breathing only and was acquired by Peloton for $2.2 million
Narrow until you can win it.
Josh, Blue Throne
2.1 Start from a real pain
Painkillers sell themselves; vitamins need convincing
| Painkiller | Vitamin | |
|---|---|---|
| Examples | Migraine tracking, green noise | To-do, friend-making apps |
| The pain | Persists until solved | Optional, nice to have |
| Landing page | Needs little explaining | Must convince people |
| Buying | Users pay quickly | Slow, hard to convert |
The best niches begin with a problem people already hurt from and will pay to solve.
- Pick a painkiller, not a vitamin, as

Steve P. Young, Migraine Buddy1:18 says.
- A need-to-have gets higher subscription conversion and needs far fewer downloads to reach $50,000 a month

Steve P. Young, Migraine Buddy1:18. - Look for incumbents with weak onboarding and paywalls

Steve Young, App Masters12:05. - Migraine Buddy shows about $70K a month from 30K iOS downloads on Sensor Tower

Steve Young, App Masters12:05. - Dating is a pain that does not go away until solved, so the landing page needs little explaining

Dmitri, YourMove AI29:55. His one named exception is longevity, which people pay a lot for.
- A need-to-have gets higher subscription conversion and needs far fewer downloads to reach $50,000 a month
- Understand one customer's problem deeply before you build. With building getting faster, this matters most
Alexander Embiricos, OpenAI (Codex)54:40.
- Spend day one researching the niche, the market and competitor apps

Nicole Cheung, Glam Up11:03. - Write one key user, one problem and one use case, so the goal rules out approaches

Cat Wu, Anthropic7:00. - Canva started with school yearbook coordinators who had no design experience, and spoke to every customer

Melanie Perkins, Canva50:38.
- Spend day one researching the niche, the market and competitor apps
- Pick a field where you know something others do not.
- Build the app around what you know that somebody else does not

Jacob Eiting, RevenueCat53:43. - Cursor's founders spent four months on mechanical engineering because it looked uncompetitive. They lacked the expertise and the excitement

Michael Truell, Cursor15:35.
- Build the app around what you know that somebody else does not
2.2 Define a bullseye group you can reach
Name the smallest group most likely to adopt first, and set everyone else aside for later.
- Define a comically narrow bullseye customer before you build or research. This is advice from
Michael Margolis, GV9:45.
- Narrowing prioritizes your roadmap, focuses your research and filters the feedback you get
Michael Margolis, GV9:45. - Decide their language, money, problem, technical facility and temperament
Seth Godin24:05. - If no one in a narrow group is thrilled the product exists, that is a warning sign
Michael Margolis, GV9:45. - Pitching the Humane Pin to about 400 tinkerers on Product Hunt would have given room to dance
Seth Godin24:05.
- Narrowing prioritizes your roadmap, focuses your research and filters the feedback you get
- Serve the users who feel the most pain.
- GPTZero started with teachers, whose jobs ChatGPT disrupted

Edward Tian, GPTZero8:18. - Runna built product and marketing around race trainers, its highest value users

Miranda Paine, Runna47:52. - Teachers shared GPTZero with students, who became the much larger share of users

Edward Tian, GPTZero8:18.
- GPTZero started with teachers, whose jobs ChatGPT disrupted
- Choose a group you can find and that can pay.
- Build for a group you can reach, such as a Reddit group or a conference

Rik Haandrikman, RevenueCat14:40. - Check ability and need to pay. International students improve on their own and have not felt the career cost yet

Anada Lakra, BoldVoice34:10. - Tolan's Gen Z users dropped off after a day or two. Users 30 to 35 plus kept higher retention and conversion

Ajay Mehta, Tolan13:49. - Tolan first designed for younger kids. Testing pulled it toward late teens and early 20s

Ajay Mehta, Tolan13:40.
- Build for a group you can reach, such as a Reddit group or a conference
2.3 Check that the market is real
A good niche already shows demand and money, without being a trap.
- Look for proof that people pay in this space.
- Enter a space where one to three apps make at least $100k a month. Take the concept to an adjacent area, like ranked gyms to ranked running

Caleb Dean, Runafy54:06. - Filter Flippa or Acquire.com listings to iOS apps, since sellers must show revenue
Bechir Arfaoui0:15. - Find the keywords first, then build for that search demand
Steve Young, App Masters20:30. - Liftoff had held $100k a month or more for at least 12 months when Caleb validated

Caleb Dean, Runafy54:06. Five thousand a month is not enough validation. - A new AI app reached $5,000 in its first month through ASO alone
Steve Young, App Masters20:30. - Benchmark against similar apps. The RevenueCat median is 2.6% iOS download to paid by day 35
Steve P. Young, App Masters4:54.
- Enter a space where one to three apps make at least $100k a month. Take the concept to an adjacent area, like ranked gyms to ranked running
- Prefer a crowded market with room for niches over an empty one.
- An empty market may mean users do not want to pay

Leon Sasson, Rise39:10. - Apply a novel idea to an already popular niche. That tests fewer unknowns than a blank slate

Daniel Heintzman, Sway AI37:30. - Most Rise users do not own a wearable, so it serves a different user than Oura and Whoop

Leon Sasson, Rise39:10.
- An empty market may mean users do not want to pay
- Be suspicious of ideas that get easy praise.
- A tarpit is an idea many people try that draws good early validation

Dalton Caldwell, Y Combinator24:40. - Pick steady demand over lottery topics

Casper, Payout35:46. - Friends' night-out apps, Foursquare clones and music discovery are tarpits

Dalton Caldwell, Y Combinator24:40. - Saving money videos swing from 100,000 to 10 million views. Side hustle videos always get at least 300,000

Casper, Payout35:46.
- A tarpit is an idea many people try that draws good early validation
2.4 Cut your niche out of a bigger category
Take one slice of a big market and become known for it.
- Pull one neglected tentacle from a successful app.
- Pick a content type or keyword a big brand added but cannot focus on
Steve P. Young, App Masters0:32. - Calm expanded into sleep stories, soundscapes and focus music, and does not optimize ASO for each
Steve P. Young, App Masters0:32. - One of Steve's apps built this way made $550,000 last year
Steve P. Young, App Masters0:32.
- Pick a content type or keyword a big brand added but cannot focus on
- Position around one use case, even if the features are general.
- Name the app and design the screenshots around one use case. You get known for one thing
Steve P. Young, Photo Revive AI2:50. - Photo Revive AI offers the same text to image and text to video as generic apps. It is estimated at about $500K a month
Steve P. Young, Photo Revive AI2:50.
- Name the app and design the screenshots around one use case. You get known for one thing
- Narrow until you can credibly claim number one.
- Keep it believable. The category needs real competitors and its own ecosystem

Josh, Blue Throne9:34. - Size the market by cutting Sensor Tower into logical categories. The top 30 apps are usually the lion's share

Josh, Blue Throne9:34. - Flow narrowed health to women's health and raised $200M+ at a $1B+ valuation

Josh, Blue Throne9:34.
- Keep it believable. The category needs real competitors and its own ecosystem
- Listen when users ask for a specific vertical.
- People kept asking if a martial arts app did wrestling, so George built Wrestle AI

George, Wrestle AI3:33. - Watch what users push a demo to do

Jack McDermott, ElevenLabs13:00. - Wrestle AI passed 100,000 downloads

George, Wrestle AI3:33. - Users pasted hundreds of thousands of characters into a 200-character demo box. ElevenReader then targeted fan fiction and web novels

Jack McDermott, ElevenLabs13:00.
- People kept asking if a martial arts app did wrestling, so George built Wrestle AI
2.5 Win it, then expand
Own the small group first, then widen along what your users already do.
- Start narrow and move up, not the reverse.
- Build a base of downloads and sales in the niche, then go up to broader categories
Steve P. Young, Breathwrk9:12. - Start with box breathing and move into meditation, rather than fighting Calm and Headspace
CP Young, Coursiv15:18. - Course Hero started with Cornell, repeated it course by course, and later spread across schools and geographies
Andrew Grauer, Learneo. - Honeydew spent six months only in New York. Adding Florida doubled the business overnight
David Futoran, Honeydew18:20.
- Build a base of downloads and sales in the niche, then go up to broader categories
- Expand by following what users already do.
- Watch for jobs inside your product that deserve their own surface. Do not sort by TAM

Dylan Field, Figma34:00. - Watch users who go through hoops to use your product in unintended ways, as Discord communities did

Peter Sellis, Snap and Discord57:50. - A school asked to use Canva for newsletters, which revealed a wider gap

Melanie Perkins, Canva50:38.
- Watch for jobs inside your product that deserve their own surface. Do not sort by TAM
- Design features that serve the core group and the next one.
- Zero's protein and hydration features serve both fasting and GLP-1 users

Mike Maser, Zero38:14. - Apt began with personality assessments, then added career path recommendations, job matching and an AI mentor

Tomas Hoyos, Apt20:00.
- Zero's protein and hydration features serve both fasting and GLP-1 users
2.6 Where they disagree
Advice splits on how crowded the market should be, how small the first group can be, and how hard to start.
- Crowded or uncrowded.
- Crowded markets with room for niches are good

Leon Sasson, Rise39:10. Red oceans like mental health and food scanners are very hard without a unique product 
Yuliya Lennox, Solid Starts1:12:50. - Others prefer boring niches like pest control or funeral homes. Less competition lets you charge real money
Andrew Wilkinson, Tiny6:26. - Cal AI won a seemingly saturated market through hustle and marketing

Yuliya Lennox, Solid Starts1:12:50.
- Crowded markets with room for niches are good
- Easy or hard first market.
- Speak stayed about four years in South Korea, the most demanding English-learning market, to prove real differentiation

Connor Zwick, Speak23:17. - Praktika chose Brazil for low English penetration and high income upside, despite weak purchasing power

Adam Turaev, Praktika10:03.
- Speak stayed about four years in South Korea, the most demanding English-learning market, to prove real differentiation
- Fast money or long-term brand.
- Superpower targets tastemakers first. They bring less money early but create the brand and culture
Max Marchione, Superpower28:06. - Business subscription apps can charge $200 to $300 a year when users make back $2000

Alex, Boost App Social39:40.
- Superpower targets tastemakers first. They bring less money early but create the brand and culture
- Small business or enterprise.
- Pick one and never blend them. Small business is marketing-led and enterprise is sales-led
Jen Abel, Jellyfish6:07. - SMB gives short feedback loops and millions of potential buyers, and the market pulls you upmarket over time

Dharmesh Shah, HubSpot49:06.
- Pick one and never blend them. Small business is marketing-led and enterprise is sales-led
← Previous lessonHow to test for real customer pull earlyNext lesson →How to launch a simple first version fast
Sources
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Sub Club - How Tolan 3X'd Subscriber Conversion after Shifting to Freemium ·
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Lenny's Podcast - Zigging vs. zagging: How HubSpot built a $30B company | Dharmesh Shah (co-founder/CTO) ·
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Lenny's Podcast - Advanced App Store Optimization Strategies for 2024 ·
App Masters - The hierarchy of engagement | Sarah Tavel (Benchmark, Greylock, Pinterest) ·
Lenny's Podcast - A step-by-step guide to crafting a sales pitch that wins | April Dunford (author of Sales Pitch) ·
Lenny's Podcast - Inside Linear: Building with taste, craft, and focus | Karri Saarinen (co-founder, designer, CEO) ·
Lenny's Podcast - Brian Balfour: 10 lessons on career, growth, and life ·
Lenny's Podcast - How to become a category pirate | Christopher Lochhead (Author of Play Bigger, Niche Down, more) ·
Lenny's Podcast - Picking sharp problems, increasing virality, and unique product frameworks | Oji Udezue (Typeform) ·
Lenny's Podcast - An inside look at Figma’s unique GTM motion | Claire Butler (first GTM hire) ·
Lenny's Podcast - Frameworks for product differentiation, team building, and first principles thinking | Ayo Omojola ·
Lenny's Podcast - Product lessons from Waymo | Shweta Shrivastava (Waymo, Amazon, Cisco) ·
Lenny's Podcast - Taxi mafias, cash vaults & 100% MoM growth: The story of SEA’s biggest startup | Kevin Aluwi (Gojek) ·
Lenny's Podcast - Competing with giants: An inside look at how The Browser Company builds product | Josh Miller (CEO) ·
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Lenny's Podcast - AI and product management | Marily Nika (Meta, Google) ·
Lenny's Podcast - This ChatGPT App Makes $200K a Month ·
App Masters - How to nail your product positioning | April Dunford (Obviously Awesome) ·
Lenny's Podcast - Founder-led sales | Pete Kazanjy (Founding Sales, Atrium) ·
Lenny's Podcast - How Snyk built a product-led growth juggernaut | Ben Williams (VP of Product at Snyk) ·
Lenny's Podcast - Developing a growth model + marketplace growth strategy | Dan Hockenmaier ·
Lenny's Podcast - Customer-led growth | Georgiana Laudi (Forget The Funnel) ·
Lenny's Podcast - The role of AI in new product development | Ryan J. Salva (VP of Product at GitHub) ·
Lenny's Podcast - The art of building legendary brands | Arielle Jackson (Google, Square, First Round Capital) ·
Lenny's Podcast - Product Market Fit: The Simple Way to Find It ·
App Masters - How to launch and grow your product | Ryan Hoover of Product Hunt and Weekend Fund ·
Lenny's Podcast - This Budgeting App Makes $400K a Month ·
App Masters - Should You Make a Wordle Clone? (And How One Wordle App is Making $50K a Month) ·
App Masters - This Photo Scanner App Makes $300K a Month ·
App Masters - App Ideas to Make Money - The Proven Method 2022 ·
App Masters - Avoid These App Launch Mistakes (Part 4) - App Startup Series ·
App Masters - Do This Before Building Your App (Part 1) - App Startup Series ·
App Masters - Influencer Marketing for Mobile App Downloads as an Indie Dev ·
App Masters - How to Launch a Successful App as An Indie Developer ·
App Masters - Side Hustle App Marketing Strategies ·
App Masters - Crossy Road Creator Matthew Hall (Audio Masterclass) ·
App Masters - This Intermittent Fasting App is Making $300K a Month (Fastic App Review) ·
App Masters - Hottest Monetization Trends for Mobile Games ·
App Masters - Chad Mureta's App Marketing Strategy (App Empire) ·
App Masters - 5 Juicy App Marketing Strategies With No Budget ·
App Masters - How to Validate App Idea With Simple One-Page Website ·
App Masters - 🧐 Market Research for an App - Save time and money with this tip ·
App Masters - Talk on Revenue at Founder Institute Sacramento ·
App Masters - Color Switch Creator on Game Design with David Reichelt ·
App Masters
Part of Finding Product-Market Fit in the growth library.