Product-led growth (PLG)
What is product-led growth?
Product-led growth (PLG) is a go-to-market strategy in which users discover, try and adopt the product themselves, through a free plan, a trial or open source, and the product’s value and built-in sharing drive growth. Sales, if any, helps larger customers expand.
It contrasts with sales-led growth, where deals start with a sales conversation.
Why product-led growth matters
When people can try a product immediately, the cost of acquiring each customer can fall and growth can scale with usage. It needs a product that delivers value quickly without help.
Related marketing terms
A viral loop is a cycle where using a product brings in new users, who use it and bring in more, such as invites or shared content.
Community-led growth is growing a business through a community of users who help, teach and recommend each other, with the company as host.
A go-to-market strategy is the plan for bringing a product to customers: who it is for, how it is positioned, priced, marketed and sold.
Founder-led sales is when a startup’s founders sell the product themselves in the early days, before hiring a sales team.