How Neighbor Found Product Market Fit As A Marketplace (Joseph Chat Clip)

15 Mar 2022 · 2 min

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1:46

Neighbor started by obsessing over transaction error rates and founders personally fixing truck issues for Utah hosts. As they scaled to Series A, they shifted focus to organic adoption in new markets with zero marketing spend, proving the product worked on its own.

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Back to that kind of your first market that you were in, what were some kind of those initial kind of signals that you did have like product-market fit?
I think there's different signals that you look for over time. Initially, we're looking for, we're really dialed into how many people make money on the platform without having 10 problems. It's like reducing your problem, like error rate, you know, because so many people are going to have so many problems with their transactions. Later on, I think you pay a lot more attention to like organic signals. So, you know, raising kind of at that Series A stage, we started paying a lot of attention to, okay, we have a lot of markets where we've never launched to the market. We've never spent a single dime in that market. And yet we're having hosts sign up, we're having renters sign up and rent those host spaces all without us doing anything. And that kind of tug where whether we like it or not, people are going to use the product, that's what we look for later. But I think early on, you want to be in close, like we knew the names, we'd never met them before they signed up on the platform, but once they signed up, like We knew the names of our first 1,000 hosts in Utah. And we would, when there was a problem, we would like go personally rent a moving truck and show up at their house and like help, you know, someone's in Asia and their stuff's in the house and the house is selling. And so the stuff needs to be moved. Like we'd go move it ourselves. Today we have automated processes for all of that.