Growth
PLG (Product-Led Growth)
A go-to-market strategy where the product itself is the primary driver of customer acquisition, activation, conversion, and expansion — typically with a self-serve free tier or trial.
In plain English
Instead of sales reps qualifying leads and demoing to executives, the user finds the product, signs up, uses it for free, and converts to paid when the value is obvious. Slack, Notion, Figma, Linear all run PLG motions.
Example
A developer hears about a new code-review tool from a podcast. Signs up, free tier covers solo use. Two weeks in, invites a teammate. Three months in, the team-tier paid plan becomes obvious. They self-serve upgrade — no sales call ever happens. Annual contract value: $1,200. CAC: ~$0 (organic). Payback: month 1.
Why it matters
PLG flips the unit economics of SaaS. CAC drops dramatically; the product replaces most of the sales motion; expansion happens naturally as teams grow. Works best when: the buyer is the user, the value is obvious in <5 minutes, and viral / network mechanics exist inside the product. Doesn't work when: buyer ≠ user (enterprise IT, regulated industries), procurement is complex, or value requires significant setup.
Common mistakes
- Calling a 14-day trial 'PLG' — true PLG has a forever-free tier
- Hiding pricing — PLG depends on self-serve purchase; obscured pricing kills the conversion
- Adding sales-led friction (gated demos, mandatory calls) on top of PLG signup — defeats the motion
- Underestimating product engineering investment — PLG demands more product investment than SLG; the product is the salesperson
- Confusing PLG with bottom-up — they overlap but aren't identical (bottom-up describes who decides; PLG describes the motion)