| name | product-led-growth |
| description | Use when the user wants to grow their product through the product itself rather than sales, implement a freemium or free trial model, create viral loops, or convert free users to paid. Also use when the user mentions 'PLG,' 'product-led growth,' 'freemium,' 'free trial,' 'viral loop,' 'PQL,' 'self-serve,' or 'in-product growth.' |
Product-Led Growth
PLG is a go-to-market strategy where the product is the primary driver of acquisition, retention, and expansion. Users experience value before they talk to sales.
PLG vs Sales-Led Growth
| Dimension | PLG | Sales-Led |
|---|
| First touch | Product (free tier or trial) | Sales rep |
| Value delivery | Before purchase | After purchase |
| Primary conversion signal | Product usage | Deal progression |
| Expansion driver | In-product upgrade triggers | Account management |
| Works best for | < $10k ACV, wide market | > $25k ACV, complex procurement |
PLG is not a replacement for sales. At higher ACV, PLG and sales-led work together.
Freemium vs Free Trial
Freemium:
- Free forever with limited features/usage
- Best when: network effect or collaboration features; value increases with usage
- Risk: users stay free forever; support cost per free user is too high
Free trial:
- Full product, time-limited (7/14/30 days)
- Best when: value is obvious quickly; product requires setup effort that creates commitment
- Risk: users don't activate before trial ends; urgency feels artificial
Reverse trial (try both):
Start all new users on the paid plan for 14 days, then downgrade to free if no conversion.
Shows the full product value before restricting it. Converts better than standard freemium.
The PLG Flywheel
User acquires product (free)
→ Reaches aha moment
→ Invites teammates / shares output
→ New users acquired through product
→ Usage grows → hits upgrade trigger
→ Converts to paid
→ Expands seats/usage
→ Back to flywheel
Bottlenecks to diagnose: activation rate, invite rate, upgrade trigger hit rate, conversion rate.
Product Qualified Leads (PQLs)
A PQL is a free user who has exhibited behavior that predicts conversion.
PQL definition formula:
- Identify your best-fit paying customers
- Look at what they did in their first 30 days as free users
- Find the 2-3 behaviors that appear in 80%+ of converted accounts
- That combination = your PQL definition
Example PQL: "User who has created 3+ projects AND invited at least 1 teammate within 14 days."
Route PQLs to inside sales or automated upgrade sequences — not cold outreach to everyone.
Viral Loops
| Loop type | Mechanic | Example |
|---|
| Collaboration | Invite to use with you | Figma, Notion, Slack |
| Sharing output | Share a result that requires signup to interact | Loom video, Typeform |
| Word-of-mouth | Powered by / made with branding | Mailchimp footer, Calendly |
| API / embed | Product embedded in other products | Stripe, Twilio |
Viral coefficient > 1 = each user brings in more than one new user. Sustainable growth.
In-Product Upgrade Triggers
Place upgrade prompts at the moment of value, not at arbitrary limits.
Good trigger: User is about to collaborate with a 4th person — show the team plan.
Bad trigger: "You've used 80% of your storage" with no context on what they lose.
Upgrade triggers should feel like the next natural step, not a punishment.
Common Rationalizations
| Rationalization | Reality |
|---|
| "We can't afford to give it away for free" | If users don't experience value before buying, CAC is high and conversion is hard. |
| "Free users are a support burden" | Automate activation. PQLs handled by inside sales pay back support cost 10x. |
| "Our product is too complex for self-serve" | Complexity is a product problem, not a PLG problem. Simplify the first-use experience. |
| "PLG works for B2C, not B2B" | Slack, Figma, Notion, Linear, Vercel are all B2B PLG companies. |
Verification
