Product-Led Growth: cheatsheet for busy founders
What's PLG? What benefits does it bring? Where can you read more?
What's PLG? What benefits does it bring? Where can you read more?
Table of Contents
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📈 Definition — Product-led growth (PLG) is a business methodology where user acquisition, conversion, and retention are primarily driven by the product itself.
🔄 Company Alignment — PLG creates alignment across teams, focusing on the product as the main source of sustainable business growth.
💻 User Experience — PLG emphasizes a consumer-grade user experience, often through freemium or free trial models, to drive adoption and retention.
🔍 Democratization — PLG is not about product managers leading but about democratizing decision-making to build better products.
Examples
📊 Zoom — A prime example of successful PLG, with a rapid user base growth and a market cap of $15.9 billion at IPO.
💼 Airtable — Demonstrates PLG with $142 million in revenue in 2022 and the creation of Airtable Universe to scale use cases.
💬 Slack — Known for its PLG approach, allowing users to experience the product without a traditional sales process.
Benefits
🕒 Shorter Sales Cycle — PLG can reduce the time-to-value and sales cycle by letting users onboard themselves.
🌟 Better User Experience — Focusing on the product leads to a more intuitive and valuable user experience.
💰 Lower CAC — A self-serve model can lower customer acquisition costs by allowing users to upgrade without sales interactions.
👥 Higher RPE — Product-led companies can achieve higher revenue per employee due to scalable operations.
Adoption Process
🆓 Freemium Model — Many PLG companies offer a free version of their product with the option to upgrade for advanced features.
🔄 Trial Experience — Free trials allow users to experience the product before committing to a paid plan.
📈 Virality — PLG strategies often leverage the virality of the product to attract new users and drive growth.
Market Evolution
📉 Shift in Demand — Users now expect a consumer-grade experience, driving the need for PLG in B2B and B2C markets.
🔀 Consumerization — The trend towards consumer-like experiences in enterprise software is a key driver of PLG adoption.
📚 History of PLG — The term 'product-led growth' was coined in 2016, but the approach has been evolving over the past decade.
Additional Reading
📈 Definition — Product-led growth (PLG) is a business methodology where user acquisition, conversion, and retention are primarily driven by the product itself.
🔄 Company Alignment — PLG creates alignment across teams, focusing on the product as the main source of sustainable business growth.
💻 User Experience — PLG emphasizes a consumer-grade user experience, often through freemium or free trial models, to drive adoption and retention.
🔍 Democratization — PLG is not about product managers leading but about democratizing decision-making to build better products.
Examples
📊 Zoom — A prime example of successful PLG, with a rapid user base growth and a market cap of $15.9 billion at IPO.
💼 Airtable — Demonstrates PLG with $142 million in revenue in 2022 and the creation of Airtable Universe to scale use cases.
💬 Slack — Known for its PLG approach, allowing users to experience the product without a traditional sales process.
Benefits
🕒 Shorter Sales Cycle — PLG can reduce the time-to-value and sales cycle by letting users onboard themselves.
🌟 Better User Experience — Focusing on the product leads to a more intuitive and valuable user experience.
💰 Lower CAC — A self-serve model can lower customer acquisition costs by allowing users to upgrade without sales interactions.
👥 Higher RPE — Product-led companies can achieve higher revenue per employee due to scalable operations.
Adoption Process
🆓 Freemium Model — Many PLG companies offer a free version of their product with the option to upgrade for advanced features.
🔄 Trial Experience — Free trials allow users to experience the product before committing to a paid plan.
📈 Virality — PLG strategies often leverage the virality of the product to attract new users and drive growth.
Market Evolution
📉 Shift in Demand — Users now expect a consumer-grade experience, driving the need for PLG in B2B and B2C markets.
🔀 Consumerization — The trend towards consumer-like experiences in enterprise software is a key driver of PLG adoption.
📚 History of PLG — The term 'product-led growth' was coined in 2016, but the approach has been evolving over the past decade.
Additional Reading
📈 Definition — Product-led growth (PLG) is a business methodology where user acquisition, conversion, and retention are primarily driven by the product itself.
🔄 Company Alignment — PLG creates alignment across teams, focusing on the product as the main source of sustainable business growth.
💻 User Experience — PLG emphasizes a consumer-grade user experience, often through freemium or free trial models, to drive adoption and retention.
🔍 Democratization — PLG is not about product managers leading but about democratizing decision-making to build better products.
Examples
📊 Zoom — A prime example of successful PLG, with a rapid user base growth and a market cap of $15.9 billion at IPO.
💼 Airtable — Demonstrates PLG with $142 million in revenue in 2022 and the creation of Airtable Universe to scale use cases.
💬 Slack — Known for its PLG approach, allowing users to experience the product without a traditional sales process.
Benefits
🕒 Shorter Sales Cycle — PLG can reduce the time-to-value and sales cycle by letting users onboard themselves.
🌟 Better User Experience — Focusing on the product leads to a more intuitive and valuable user experience.
💰 Lower CAC — A self-serve model can lower customer acquisition costs by allowing users to upgrade without sales interactions.
👥 Higher RPE — Product-led companies can achieve higher revenue per employee due to scalable operations.
Adoption Process
🆓 Freemium Model — Many PLG companies offer a free version of their product with the option to upgrade for advanced features.
🔄 Trial Experience — Free trials allow users to experience the product before committing to a paid plan.
📈 Virality — PLG strategies often leverage the virality of the product to attract new users and drive growth.
Market Evolution
📉 Shift in Demand — Users now expect a consumer-grade experience, driving the need for PLG in B2B and B2C markets.
🔀 Consumerization — The trend towards consumer-like experiences in enterprise software is a key driver of PLG adoption.
📚 History of PLG — The term 'product-led growth' was coined in 2016, but the approach has been evolving over the past decade.
Additional Reading
📈 Definition — Product-led growth (PLG) is a business methodology where user acquisition, conversion, and retention are primarily driven by the product itself.
🔄 Company Alignment — PLG creates alignment across teams, focusing on the product as the main source of sustainable business growth.
💻 User Experience — PLG emphasizes a consumer-grade user experience, often through freemium or free trial models, to drive adoption and retention.
🔍 Democratization — PLG is not about product managers leading but about democratizing decision-making to build better products.
Examples
📊 Zoom — A prime example of successful PLG, with a rapid user base growth and a market cap of $15.9 billion at IPO.
💼 Airtable — Demonstrates PLG with $142 million in revenue in 2022 and the creation of Airtable Universe to scale use cases.
💬 Slack — Known for its PLG approach, allowing users to experience the product without a traditional sales process.
Benefits
🕒 Shorter Sales Cycle — PLG can reduce the time-to-value and sales cycle by letting users onboard themselves.
🌟 Better User Experience — Focusing on the product leads to a more intuitive and valuable user experience.
💰 Lower CAC — A self-serve model can lower customer acquisition costs by allowing users to upgrade without sales interactions.
👥 Higher RPE — Product-led companies can achieve higher revenue per employee due to scalable operations.
Adoption Process
🆓 Freemium Model — Many PLG companies offer a free version of their product with the option to upgrade for advanced features.
🔄 Trial Experience — Free trials allow users to experience the product before committing to a paid plan.
📈 Virality — PLG strategies often leverage the virality of the product to attract new users and drive growth.
Market Evolution
📉 Shift in Demand — Users now expect a consumer-grade experience, driving the need for PLG in B2B and B2C markets.
🔀 Consumerization — The trend towards consumer-like experiences in enterprise software is a key driver of PLG adoption.
📚 History of PLG — The term 'product-led growth' was coined in 2016, but the approach has been evolving over the past decade.
Additional Reading
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