What is Product-Led Growth?
Product-led growth (PLG) is a business methodology where the product is the primary driver of customer acquisition, conversion, and expansion. Instead of relying on sales and marketing to push prospects through a funnel, PLG companies design their product to sell itself through free trials, freemium models, and viral mechanics.
Why Product-Led Growth Matters
PLG reduces customer acquisition costs, shortens sales cycles, and creates better product-market fit through direct user feedback. For technical products especially, letting the product speak for itself is often more effective than any marketing campaign.
How to Implement
- 1 Design for a fast time-to-value (under 5 minutes to 'aha')
- 2 Remove friction from signup and onboarding
- 3 Build sharing and collaboration into the product
- 4 Create clear upgrade paths based on usage
- 5 Instrument everything to understand user behavior
Common Mistakes
X Assuming PLG means 'no sales team'
X Ignoring the need for activation and onboarding
X Not having clear conversion triggers
X Underinvesting in product experience
Related Terms
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