YC
David Rusenko - How To Find Product Market Fit
@ Y Combinator
09/06/18
Takeaways
DR
David Rusenko
09/06/18
@ Y Combinator
Weebly is an easy way for entrepreneurs to build a website or an online store, which was revolutionary compared to the previous requirement of learning to code.
DR
David Rusenko
09/06/18
@ Y Combinator
I wrote the first line of code for Weebly in February 2006, and over the next 12 years, we grew to 50 million users and around 350 employees before selling to Square for $365 million.
DR
David Rusenko
09/06/18
@ Y Combinator
Half of the US population visits a Weebly site every month, reflecting the success of the entrepreneurs using our platform to build their websites.
DR
David Rusenko
09/06/18
@ Y Combinator
Finding product market fit is the top problem any entrepreneur faces, and it's about the practical nitty-gritty hustle rather than theoretical concepts.
DR
David Rusenko
09/06/18
@ Y Combinator
The hardest part of a startup is getting from idea to traction, which is often where most companies fail.
DR
David Rusenko
09/06/18
@ Y Combinator
When you're in the product market fit phase, it's crucial to keep refining your product instead of just focusing on scaling the business.
DR
David Rusenko
09/06/18
@ Y Combinator
The two hardest challenges in a startup are finding product market fit and building a world-class team; making money is a distant third.
DR
David Rusenko
09/06/18
@ Y Combinator
To create a new market, you need to find a hidden need that many people don't realize exists, as this is often where the best opportunities lie.
DR
David Rusenko
09/06/18
@ Y Combinator
Listen to customers' problems rather than their proposed solutions, as they often don't know what they want until you show it to them.
DR
David Rusenko
09/06/18
@ Y Combinator
Rapid prototyping and user testing are essential; focus on getting a functional prototype out quickly, using tools to create clickable mock-ups or writing throwaway code to test ideas with users, as building a fully functional product before testing can be an expensive mistake.
DR
David Rusenko
09/06/18
@ Y Combinator
Don't worry about scaling your code initially; instead, prioritize getting in front of users and validating your product.
DR
David Rusenko
09/06/18
@ Y Combinator
Initially, don't stress about monetization; ensure the product experience is right before charging for it.
DR
David Rusenko
09/06/18
@ Y Combinator
Expect that the number of iterations needed to refine your product will be significantly higher than anticipated—about ten times more.
DR
David Rusenko
09/06/18
@ Y Combinator
Keep your burn rate low; if you only have enough cash for a few iterations but need many more, it won't work.
DR
David Rusenko
09/06/18
@ Y Combinator
Build a team that can iterate quickly; outsourcing coding in the early days often fails because it doesn't allow for rapid adjustments.
DR
David Rusenko
09/06/18
@ Y Combinator
Test your solution with target customers, being flexible about who those customers might be based on feedback.
DR
David Rusenko
09/06/18
@ Y Combinator
Don't overthink your approach; getting something out there and iterating based on feedback is more important than perfecting every detail.
DR
David Rusenko
09/06/18
@ Y Combinator
Conduct customer interviews to understand their motivations and pain points; aim for five to ten interviews for qualitative insights.
DR
David Rusenko
09/06/18
@ Y Combinator
Run UX testing sessions with three to five users to identify critical usability issues before launch.
DR
David Rusenko
09/06/18
@ Y Combinator
Track the right metrics, focusing on returning usage, NPS, and paying customer renewal rates to gauge product market fit.
DR
David Rusenko
09/06/18
@ Y Combinator
Returning usage is a key indicator of product success; track how many users return within various time frames after signing up.
DR
David Rusenko
09/06/18
@ Y Combinator
Aim for an NPS above 50 to indicate that you've likely achieved product market fit; this measures customer loyalty and satisfaction.
DR
David Rusenko
09/06/18
@ Y Combinator
Pay attention to customer renewal rates rather than just churn rates, as they provide a clearer picture of customer retention.
DR
David Rusenko
09/06/18
@ Y Combinator
You know you've achieved product market fit when customers are actively seeking your product and returning without prompting.
DR
David Rusenko
09/06/18
@ Y Combinator
Don't scale your team until you've achieved product market fit; keep the team small to maintain agility and focus.
DR
David Rusenko
09/06/18
@ Y Combinator
Once you've found product market fit, scale aggressively to capture market opportunities before competitors do, as advantages always accrue to the number one player in a competitive market, allowing for faster product development and increased revenue.
DR
David Rusenko
09/06/18
@ Y Combinator
Building a team aggressively but thoughtfully is crucial; ideally, you should not double the size of your company in any given year to avoid creating a shaky foundation.
DR
David Rusenko
09/06/18
@ Y Combinator
You should not scale a company past 20 people before achieving product-market fit; once you find it, scale aggressively.
DR
David Rusenko
09/06/18
@ Y Combinator
Great brands are built around a fundamental consumer insight that is often unacknowledged; this insight should be reflected in your product and messaging.
DR
David Rusenko
09/06/18
@ Y Combinator
Virgin America identified that the flying experience was poor and created an airline that offered a better experience, which became the foundation of their brand.
DR
David Rusenko
09/06/18
@ Y Combinator
During the first three to four years, Weebly focused on convincing people that building a website was possible, as many assumed it was beyond their capabilities.
DR
David Rusenko
09/06/18
@ Y Combinator
The key to achieving product-market fit is to continue iterating until you find something that resonates with users, rather than relying solely on metrics like signups.
DR
David Rusenko
09/06/18
@ Y Combinator
In the early days, the prevailing thought in Silicon Valley was to not charge for products, which led Weebly to initially offer a completely free service.
DR
David Rusenko
09/06/18
@ Y Combinator
When launching a product, focus on your customers' needs rather than your competitors' features; it's about doing one thing exceptionally well.