MeasuriMeansurig Prodng Product/Muct/Market Fiarktet Fit becomebec omeunsa tisfieunsadtisfie overnightd overnight. To .s aTfego suaafegrd uayourrd syourelf asgelfa instag atheinstm the, m, estabelishstab alishnnua annl contraual contracts rathercts rather than thmaonth-to-n month-to-monthm onthdeals. d Iena lits.s Iena itrlsy early days,d Saaylesforces, Salesforce almo astlmo wentst w oentut of o ubut ofsines business dues todu thee to i nstheta bilityinstability of its of its month-to-month-to-month month subscriptiosubscription mond elm.odel. AgainAg, amine,a suringmeasuring churn churn helps helps your yourstartup sta rtupmak ema akne oabnjectiv objective e measmureeasmureentm ofent your of yourbusines business ands hoandw hoit’sw evolving it’s evolving. Som. eS ocmhuer nc his urn is healthhey,a espelthy, cespeiallyc ifia thelly if c theusto cmuserstom youers lose you alosere n aore longer no longer a goo ad goo fit fod r fit for your proyoudur proct duor fctu tor fureu roaturedma roapdma. p. 4. Commitment4. Commitment Here’Hers a seriee’s a sserie of qsu of qestionsuestions to as stoess as cosessmm coitmmmentitm: ent: • Are your customers involved in pilot programs?• Are your customers involved in pilot programs? • Are the pilot programs paid or free?• Are the pilot programs paid or free? • What are the terms of these programs • What are the terms of these programs — month to month, one — month to month, one year, or three years?year, or three years? Let’s Lciret’csle cir bcaclek btoac kthe to ithemport imaportnce aofnc es eofcuring securing ann uaannl couanl trcoacntstr. acts. BottoBmotto linme, theyline, theytransl traatensl inatote strongerinto stronger produ proct ducommct coitmmmenittm froenmt froyoumr your custocmuserstom. ers. MostMo custost cmustoersm woersn ’wot mnove’t m toove an to an anun anal nusubasl csriptionubscription until until they theyknow k nyoouwr yoproudr uproct dsolvesuct solves a key a p kaeyin ppointain point that wthatill m wostill m likostely li cokelyn co-n - tinueti bneingue b eingtroub trolesoubmlesoe. Som eif. youSo if c youan se cancure se ctheseure these contr contracts, aitcts show, it ss hows your yoproudr uproct dhuasc tlong-ter has long-term valmue v. aBetterlue. Better still, upfront still, upfront recurri rencgurri panygm pentayms ents are grearea t forgrea yot forur yostaurtr uspta’srt cuapsh flo’s cash flow andw revenue pre and revenue predictabdiilitctaby. ility. OnceO younce’ve you compile’ve compiled sucdces susc storiecess stories or cas seor stucasedie stus thdieats w thilla tregiste will register r with wneithw neprospew prospects, ucsets, the usem the to mencour to encourage naegew ncuestow cmustoersm toers pa toy fopar y for an anannu aanl nsubuascriptiol subscription soonn sooer, andner, toand migr to amigrte maorete m ofore your of yourcusto cmusertos mers to antonua anl ncouanltr coactsntr asacts yo asu gyoo.u O gnoe. Opotentialne potential migration migration path pmathight m bighte be month-to-month-to-monthm onthcomm coitmemmnitmets fornt sthe for firthest 10firs tc u10sto cmustoersm, 3+9ers, d3+9 d eals (ea als (a three-three-monthm onthcomm coitmmmentitm thentat rethnaet wresn forew sni forne nimnonthse months if not if c notancele candcele) d) for thefor n theext 10–next2 10–0 cu2sto0 cmustoers,m theners, thenswitch sw toitch an tonu anal-onlynual-only contr coacntstr foracts al forl all custocmuserstom beyoers beyond thndat ththresholat threshold. d. SomeSo mmarek metars aketres very are verycrow cdrowed, daend,d poteand npotetial ncutiastol cumserstom wersill swigilln sign up forup pro fordu proct dupilotct spilot froms frommany ma differentny different startup stas.rtup It’s s.co Itmm’s coonmm toon se toe see the stheame s acmuseto cmuserto logosmer logos on the on refere the reference linscets oflis tdifferes of different stanrtupt stasrtup in s in 4343 4343

Measuring Product/Market Fit - Page 6 Measuring Product/Market Fit Page 5 Page 7