Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

What is the final stage in the progression of product/market fit?

1. Growth

2. Monetization

3. Traction

4. Launch

The correct answer is: Monetization

The final stage in the progression of product/market fit is monetization. Once a business has achieved product/market fit, it means that it has developed a product that meets the needs of its target market effectively, leading to satisfied customers who are willing to engage with the product. At this stage, the focus shifts to turning that engagement into revenue. Monetization involves creating strategies to convert users into paying customers, which can include setting pricing models, developing subscription services, or other revenue-generating activities. It signifies that the product is not only accepted in the marketplace but also has the potential to sustain a profitable business model. The other stages, such as growth, traction, and launch, are important in their own right, but they precede monetization. Growth typically refers to increasing the customer base and scaling the business post-monetization, traction indicates early proof of demand before reaching the point of monetization, and launch is the initial introduction of the product to the market.