Matt VaadiCEO at guHRoo | We help small businesses build HR growth infrastructure (People + Tech + Benefits)

Product Market Fit The Problem You ACTUALLY Want!

Name: Product Market Fit The Problem You ACTUALLY Want!
Uploaded: 2026-04-24T18:00:53+00:00
Duration: 56 s
Channel: Matt Vaadi
Description: In this segment, Matt Vaadi explains how his company Underdog identified that it had achieved product‑market fit by observing unusually high response and…

24 Apr 2026 · 1 min

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In this segment, Matt Vaadi explains how his company Underdog identified that it had achieved product‑market fit by observing unusually high response and close rates to cold outreach in the highly concentrated payroll and PEO market. He notes that while the industry has 16,000 providers, making customer acquisition difficult, Underdog’s cold emails generated a strikingly high reply rate, leading to rapid customer sign‑ups. The demand grew so fast that the team had to temporarily shut off marketing because they were at capacity, a clear sign of a "good problem"—excess demand that outpaces supply. The anecdote illustrates a practical, data‑driven way to recognize product‑market fit beyond abstract metrics.

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But you talked about, you hit on a term in there and just going to take it back to Underdog. Like how did we recognize Underdog was like onto something? Well, that term product market fit, I'd never really experienced it before. And the way that I knew we were experiencing it was where the response rates we were getting to cold outreach. So in the payroll and PEO space, my brothers and sisters in Christ listening, my goodness, like it is hard to find customers, man. There's 16,000 payroll providers. So there's not going to be a poll. When you have that much market concentration. Whereas when we hit somebody with an email that says, hey, like we're getting leads, we offer unlimited marketing services, blah, blah, blah, we're getting a super high response rate for cold, not super high in general, but for cold. And then we're getting a really high close rate and adding customers that actually had to close the door on customers recently and say, hey, turn off all the marketing for a minute. Like we're full, let's get everybody on board, then we'll turn it back on. That's when you know you got a problem, right? A good problem to have. A good problem.