Product-led Growth (PLG)

What is product-led?

A product-lead approach is a relatively new term which describes the kind of approach software companies use to grow. The strategy of product-lead growth is using the product itself as the main mechanism to acquireactivate, and retain users.

Product-led VS Sales-led companies

A sales-lead approach considers its customers to be buyers, whereas the product-lead approach treats its customers as users. Furthermore, sales-lead companies work on a revenue model and target biggers businesses. On the other hand, product-led companies work on an acquisition model and usually target smaller businesses.

Who is product-led growth (PLG) for?

When a product is complex by nature and high in price, more traditional approaches to growth should be used. Enterprise products (e.g. Essbase by Oracle) should use a sales-lead approach.

ProductLedGrowth 1

However, PLG works great for self-served products, designed for small businesses. What’s also very interesting is that PLG works for both the B2B and B2C industries. This explains why B2B companies like Slack, Zoom and Stripe, as well as B2C companies like Pinterest, Evernote, and Airbnb, all grew thanks to the PLG approach.

Ready to put your product as your basis of your growth?

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