Why Most New Products Fail – And How to Beat the Odds

"Most new products will fail in the market, even if competently executed." — The Law of Market Failure, Alberto Savoia, The Right It

Every product manager dreams of launching a successful product that captures the market’s attention, solves real problems, and scales effortlessly. Yet, the harsh reality is that most new products—no matter how well-designed or well-executed—fail to achieve market success. Why does this happen, and more importantly, how can we avoid becoming part of this statistic?

The Illusion of a “Great Idea”

Many products fail not because they are poorly built but because they solve a problem that doesn’t truly exist or doesn’t exist in the way customers experience it. We often fall into the trap of believing in our ideas without validating them with real users. This is what Alberto Savoia calls "False Positives"—when we think a product will succeed just because we believe in it.

Execution vs. Market Fit

Flawless execution is necessary, but it’s not enough. A perfectly built product with no market demand is just an expensive failure. The key to avoiding this is focusing on market validation before full-scale development. Instead of asking, “Can we build this?” we should first ask, “Should we build this?”

How to Reduce the Risk of Failure

Here are a few principles to increase the chances of success:

? Pretotype, Not Prototype – Before investing in full development, test whether customers truly need your product through low-cost experiments. Fake landing pages, clickable mockups, and concierge tests can reveal early insights.

? Talk to Your Customers—A Lot – Data is valuable, but direct user conversations reveal the why behind behaviors. Understanding the pain points of potential customers helps refine product-market fit.

? Measure Interest, Not Opinions – People often say they would use a product, but their actions tell the real story. Watch for real engagement, sign-ups, pre-orders, or actual usage, not just positive feedback.

? Iterate Fast and Pivot When Necessary – If early signals show weak demand, don’t be afraid to pivot. Dropbox, Slack, and Airbnb all went through major iterations before finding success.

Final Thoughts

The Law of Market Failure isn’t meant to discourage us but to push us towards smarter product development. The best product managers don’t just build great products,

they build products that people actually want.

Have you ever experienced a product failure or a surprising market rejection? What lessons did you take away? Let’s discuss in the comments! ??