Cracking the Code to Product-Market Fit - Lessons from 1,000 SaaS Founders| Nick Tomic | S3:E10

In this episode of Force and Friction, we welcome Nick Tomic, founder of FaceToFace.io and ProductMarketFit.io, to dive deep into what it really takes to achieve product-market fit.

Having interviewed over 1,000 SaaS founders, Nick has uncovered critical insights on what separates successful startups from those that never gain traction.

From avoiding common mistakes to knowing when to scale, Nick shares battle-tested lessons every SaaS founder needs to hear.

Nick Tomic

Face 2 Face

Nick Tomic is an innovative SaaS founder who’s redefining how startups connect with their customers and achieve product-market fit. As the founder of Face2Face.io, he’s revolutionizing engagement by bringing real-time, face-to-face video communication directly to websites.

In addition, Nick leads ProductMarketFit.io, where he’s on a mission to interview 1,000 SaaS founders to uncover the most effective strategies for navigating this critical stage of growth. With a focus on direct customer interaction and actionable insights, Nick is empowering startups to build stronger connections and drive sustainable success.

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Here are the core areas we discuss in today's episode:

Understanding Product-Market Fit: Why It’s Make or Break:

Achieving product-market fit (PMF) isn’t about launching a product and hoping it sticks. Nick emphasizes that true PMF is when a product not only solves a problem but becomes indispensable to its users.

“Your first users are your most valuable asset. If they don’t stick around, neither will your business.”

Nick shares how early-stage founders can measure PMF, why traditional metrics like revenue don’t always indicate success, and how to know when you’ve truly hit the mark.

Founder Identity: Are You an Innovator, Builder, or Entrepreneur?

Nick challenges founders to identify what type of entrepreneur they are, and why it matters. He breaks it down into three categories:

1. Innovators – Those who thrive on creating new, disruptive ideas
2. Builders – Those who excel at turning ideas into products
3. Entrepreneurs – Those who can scale and sell a product effectively

“If you don’t know who you are, you’ll struggle to find the right opportunities.”

Understanding your strengths helps founders make better decisions about product development, team-building, and market positioning.

Lessons from Failure: The Tire Business That Almost Ruined Everything:

Before returning to tech, Nick ventured into the tire-changing business, a decision that cost him two years, financial struggles, and a hard lesson in product-market fit.

“I was chasing revenue instead of solving a real problem I cared about. That’s the fastest way to burn out.”

His takeaway? Stay in your lane. Focus on industries where you have knowledge, passion, and strategic advantage.

Why Most SaaS Startups Fail: Common Pitfalls in PMF.

Having worked with hundreds of SaaS founders, Nick has seen why most startups never reach product-market fit. The biggest mistakes?

1. Too many features, not enough focus – Founders keep adding features instead of perfecting a core product.
2. Building before validating demand – Many teams launch without confirming if anyone actually wants their solution.
3. Scaling too early – Growing before proving PMF leads to wasted resources and high churn.

“If your first feature doesn’t sell itself, no number of extra features will fix that.”

Nick advises founders to resist the temptation to “build their way” to PMF and instead focus on solving one clear problem exceptionally well.

The Role of Founder-Led Sales in Achieving PMF:

Nick believes that founders should be their company’s first sales reps. By engaging directly with early users, they get real-time feedback and can refine their product faster.

“Your first 10-50 customers should come from direct conversations. If you can’t sell your product, neither can your team.”

He discusses why early-stage SaaS companies should prioritize sales over marketing, using direct outreach and networking to validate demand before investing in paid acquisition.

How FaceToFace.io Helps SaaS Founders Close the Gap:

Nick built FaceToFace.io after struggling to communicate with early users of his own SaaS products. His solution? A tool that lets founders see where users get stuck, engage in real-time, and improve activation rates.

Key benefits of FaceToFace.io:

1. Live customer interaction – Connect with users in-app to guide them through the product.
2. Behavior tracking – Identify friction points that prevent activation.
3. Higher retention – Reduce churn by solving onboarding issues instantly.

“The best way to get to PMF is by talking to your users. FaceToFace.io makes that easier than ever.”

Final Thoughts:

Nick Tomic’s journey offers a masterclass in resilience, adaptability, and smart decision-making.

Whether you’re an early-stage SaaS founder or scaling your startup, his lessons on focusing, validating demand, and engaging users directly are invaluable.

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Your Host:

A little about Mike who hosts the show.  Please connect with us on LinkedIn we would love to have you as part of our professional networks.

Mike Midgley is the CEO at 6teen30 Digital, Inc. and a dynamic digital entrepreneur, nxd, strategist, public speaker and host of TheOpenMike Podcast show & Co-Host at The Force & Friction Podcast.

Mike has achieved successful six and seven-figure exits over a 30-year career, raised in excess of £1.6m [$2.5m] in Venture Capital and franchised his businesses 68 times.

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