TL;DR:
- The Real Problem: Most businesses struggle because of weak “Product-Market Fit” (PMF), not poor marketing. They’re trying to force-sell a product the market doesn’t fundamentally desire.
- The Litmus Test: The “40% Rule,” pioneered by Sean Ellis, is a simple survey. If over 40% of your users say they would be “very disappointed” if they could no longer use your product, you have a strong foundation for sustainable growth.
- The Path Forward: Stop guessing and start listening. The most direct path to effortless growth is to systematically find and solve your customers’ most important unmet needs, creating a product that naturally sells itself.
You feel it, don’t you? The constant, grinding effort. The endless meetings about marketing funnels, the pressure on the sales team, the budget evaporating into ad campaigns with lukewarm results. For many founders and leaders, growing a business feels like trying to push a giant boulder up a steep hill. Every inch of progress is a struggle.
But what if you’re pushing the wrong thing?
We are conditioned to believe that if sales are slow, we need better marketing. If leads aren’t converting, we need a better sales team. While those things matter, they often mask a deeper, more fundamental issue: a weak product-market fit. You’re trying to create demand, when you should be channeling a demand that already exists.
What is Product-Market Fit, Really?
Product-Market Fit (PMF) is that magic, almost mythical state where your product and your customers are in perfect sync. It’s the moment your business stops feeling like you’re pushing a boulder and starts feeling like you’re being pulled by a powerful magnet.
- Low PMF (Pushing 🗿): Sales cycles are long. Customers haggle on price. Reviews are mediocre. Your team feels burnt out. You have to spend a fortune on marketing just to get noticed.
- High PMF (Pulling 🧲): Sales happen with ease. Customers refer their friends without being asked. You can charge a premium. Word-of-mouth becomes your best marketing channel. Your team feels energized because they’re selling something that people genuinely love.
Achieving this state of natural flow isn’t about luck. It’s about a deliberate process of listening and adapting. It starts with asking one simple question.
Introducing the 40% Rule: Your PMF Litmus Test
Sean Ellis, a key figure in the growth of companies like Dropbox and Eventbrite, needed a reliable way to measure PMF. He developed a simple survey, now famously known as the Ellis Test, centered on a single critical question you ask your users:
“How would you feel if you could no longer use this product?”
- Very disappointed
- Somewhat disappointed
- Not disappointed
- N/A – I no longer use it
The magic number is 40%. If 40% or more of your users answer “Very disappointed,” you have likely achieved strong product-market fit. You’ve built something that has become essential to them. It’s a leading indicator of retention, pricing power, and organic growth.
If your number is below 40%, it’s not a failure. It’s a gift. It’s a clear signal to stop pushing and start listening.
How to Run the Test: A Step-by-Step Guide
You can implement this today. It doesn’t require complex software, just a commitment to honest feedback.
- Identify the Right Users: Send the survey to users who have experienced the core of your product. For a software company, that might be people who have used it in the last two weeks. For a service business, it could be recent clients.
- Keep it Simple: Use a simple survey tool (like Google Forms or a specialized tool). The key question is the one above. We also recommend adding two open-ended follow-up questions:
- What is the main benefit you receive from our product? (This tells you your core value proposition in your customers’ own words).
- How could we improve our product for you? (This gives you a direct, prioritized roadmap for development).
- Analyze with an Open Mind: Tally the results for the main question. If you’re under 40%, dive deep into the open-ended answers. The feedback from the “Somewhat disappointed” group is often gold—they see the potential but something is missing. This is where you find your path to a stronger product.
Beyond the Test: Building a System for Listening
The 40% rule is a snapshot, not the whole film. The real work is in building a culture of continuous listening. It’s about embedding the customer’s voice into every decision you make.
- Create an “Inner Circle”: Identify your best customers and create a small group for regular feedback in exchange for perks or discounts.
- Talk to Your Team: Your customer-facing teams (sales, support) are on the front lines. Survey them monthly: “What would make our customers never want to leave us?” and “What would make them all leave?”
- Build a Product Backlog: Funnel all this feedback into one place. Prioritize it not by what’s easiest, but by what has the highest potential to solve an important, unmet customer need.
Your Product is Your Best Marketer
At UNQA, we believe in building bridges, not just burning ad budget. The most sustainable, powerful, and natural bridge between you and your customers is a high-quality product that they genuinely need. When you achieve that, marketing becomes less about persuasion and more about making people aware of a solution they were already looking for.
Stop pushing the boulder. Find your magnet.
Not sure if your business would pass the 40% test?
It can be tough to see the full picture from inside the frame. We specialize in the discovery and research that uncovers the true, unmet needs of your customers.
Book a free, no-pressure discovery call with us today, and let’s find your path to effortless growth.