Looking at Twitter over the last year, I’m realising it had great Product-Market-Fit (PMF) but never great Business-Model-Fit (BMF)
Millions use Twitter for consumption, and creators use it to increase distribution and followers.
But Twitter itself has been unable to maximize monetisation of its users/creators. This was true of web browsers too (Netscape really made $$$ on the Server suite, not the consumer browser).
At Twitter (now X), Elon is trying to fix this monetisation black hole. If anyone can, he can. I don’t know how and that’s a $44 Billion Q.
Too many investors (me too) often sit on our high chairs and pontificate on PMF. But PMF without a strong ability to monetise (BMF) is incomplete.
Many startups in India end up layering product/services marketplaces on top. Some others layer ads or affiliate marketing.
Zomato: PMF = Discovery + Menus. BMF = delivery.
Zerodha: PMF = Free Trading acct. BMF = F&O, etc.
Google Maps: PMF = Directions for individual users. BMF = Enterprise Mapping (Uber, Dunzo, etc).
Did I miss any other popular examples?
Would love for you to add.
Let’s get back to you and your startup…What is your PMF? What is your BMF? Is it the same?
#startups #entrepreneurship #PMF #BMF #funding #ProductMarketFit #BusinessModelFit