What is Product-Led Growth (PLG)?
Product-Led Growth (PLG) is a business strategy where the product itself serves as the primary driver of customer acquisition, conversion, expansion, and retention. Instead of relying heavily on sales and marketing, PLG companies let users experience value firsthand through free trials, freemium models, or self-service onboarding.
Key Characteristics of PLG
- Self-Service: Users can sign up, onboard, and succeed without talking to sales
- Free Entry: Freemium tier or free trial lowers barriers
- Value-First: Users experience value before purchasing
- Viral Loops: Product encourages sharing and collaboration
- Data-Driven: Product usage signals guide expansion
PLG Company Examples
- Slack: Teams adopt organically, then upgrade
- Zoom: Free tier drives viral adoption
- Calendly: Users invite others through scheduling
- Notion: Freemium with team expansion
- Figma: Collaborative design drives team adoption
PLG vs. Sales-Led Growth
| PLG | Sales-Led |
|---|---|
| Self-service acquisition | Sales team-driven |
| Bottom-up adoption | Top-down enterprise sale |
| Low CAC, high volume | Higher CAC, larger deals |
| Usage-based expansion | Contract-based expansion |
PLG and Customer Success
In PLG companies, Customer Success often focuses on:
- Identifying Product Qualified Leads (PQLs)
- Converting free users to paid
- Driving team/enterprise expansion
- Supporting high-value accounts
.png)
.png)
%20(1).png)
.png)
.png)
.png)
.avif)
