roduct-led growth" is defined as "instances in which the usage of products functions as the primary driver of the acquisition, retention, and expansion of consumers" for a product's user base. Many businesses that are looking to expand have adopted the phrase "growth" as a strategy. Product-led growth (PLG) is not a new concept. The concept was coined by Openview Partners, but it has since been adopted by many others looking for fresh ways to expand their businesses. PLG is also known as 'freemium,' 'try-before-you-buy,' 'SaaS 2.0,' and 'free trial.'

"Customer information is required for improving the platform, determining the product-market fit, and training investors for a product-driven startup." As the customer base expands, it's important to build an effective feedback process to ensure that all departments agree on the importance of input and how it's used. The best way to improve customer service is to listen to what people want and don’t.

The best way to start early maybe to create a list of what you want your employees to do every day.

What's unique about product-led growth?

Product-led companies move the conventional sales model on their head, unlike sales-led firms. The product-led company makes this possible by providing the "keys" to the customer to use the product and helping them obtain a positive result by using the product. At this stage, upgrading to a paid plan becomes a no-brainer for many customers.

You've experienced the firsthand impact of product-led growth. You haven't read a long whitepaper about the benefits of good internal connectivity or cloud-based file sharing if you've utilized Slack or Dropbox. You wanted to see the product moving.

By the end of this article, you will find out why companies prefer to be product-led, what it takes to become product-led, and what are the key advantages of product-based development. You will also find out what it is like to work for a company that is product-led and how you can get involved in the process.

Why PLG matters now more than ever

Product-led growth is about so much more than "try before you buy," says a tech company. Customers are demanding. They want to try before they buy. Their attention spans are low. They'd rather see the product than read a whitepaper on the problem it solves.

Why does PLG matter more than ever now?

Customers expect a lot. They want to give it a try before making a purchase. Their attention spans are extremely limited. They'd prefer to see your product than read a whitepaper about the problem it solves.

However, product-led development entails far more than "test before you buy."

You can avoid product-led growth marketing by avoiding the following traps:

The rising expense of advertisements

Profitability is difficult to achieve.

Long sales cycles and minimal income per employee

Client LTV and low retention

However, many of the most profitable and well-liked businesses are product-driven.

Examples of B2B companies that are product-led:


Airtable Universe will focus on customer success rather than product sales as the primary driver of growth. The company expects to generate $20 million in revenue over the next three years.


Slack, the company behind the popular messaging app, says that 43% of the Fortune 100 pay for their service and are loud advocates of it.


The startup's product-led approach to solving designer pain points such as project organization, file management, and real-time collaboration led to a Series C round of funding that closed in 2019.

Examples of B2C companies that are product-led:


The company has a $12.7 billion valuation and will be worth more than $1.5 billion by 2019. Pinterest's product-led growth is driven by its curated feed, tailored onboarding, and inherent virality.


Typeform, a form-based data management tool, has raised $35 million in funding since it was founded in 2013. In 2017, the company closed down a $35m Series B round of funding.

Warby Parker

Eyewear raised a $75 million Series E round of funding in January. The company's omnichannel customer experience and free Home Try-On service (aka free trial) helped it raise money.

And the list continues








Companies such as Salesforce, HubSpot, and Pinterest have experienced rapid growth by leading from day one with their brand. All are highly successful companies that have experienced fast, scalable growth by focusing on product-led growth. Some of these companies have successfully moved from a sales-led approach to a product-led one.

These companies all offer consumer-grade products through a freemium or free trial. Instead of trying to push consumers into the arms of a waiting sales rep, their marketing strategies are mostly focused on getting people to try the goods themselves. These companies all provide thoughtful user onboarding experiences and continuous in-app messaging once consumers are in the product. They effectively incorporate pricing, CS, and marketing communications into the product itself.

Attributes of Product Led Growth

The best strategy for your business is product-led growth. While it's not ideal in all cases, there are some distinct advantages to product-driven development.

Growth faster

The number one reason companies use product-led growth would be. to speed up adoption and expansion. By offering users free access to the product, you are cutting right to the chase and lowering barriers to entry, says of a company that makes its money through advertising.


Many enterprises will be delighted to achieve the same degree of success as Slack and Shopify, but it can be difficult to scale up. Product-led growth is often used by fast-growing businesses because it lends itself to a broader top-of-funnel powered by free trial or freemium models. While rivals are focused on developing their sales organization, product-led businesses can guide efforts to enhance onboarding and customer support.

Lower costs for acquisitions

Using a product-led growth strategy, since consumer acquisition channels are integrated into the product, dramatically decreases the marketing budget a company needs. In exchange, this lowers total acquisition costs for the company, which in turn reduces its need to spend money on marketing.

Higher Rates of Retention

Product-led development helps consumers to grasp the importance of your product easily, ensuring that consumer preferences are consistent with the functionality. This provides a better user fit, which in the long run, improves user retention.

Approval for Customers

Goods-led growth relies heavily on word-of-mouth marketing. Your company is not the one that persuades consumers to utilize your brand. Your users, on the other hand, are the ones who encourage adoption. 

The majority of consumers would have positive reviews because the item is so focused on providing value. The fact that many customers tend to study online products they have learned about offline also plays in favor of businesses that use product-led development.

The future of product-led growth is

The product-led model of growth changes the way you think about your product, your customers, and the relationship between the two. It's a new way of looking at what makes you different from your competitors.

Product-led development emphasizes the teams, not the leaders, of a company. Modern business consumers want their teams to purchase the software. Product-led growth enables you to demonstrate (not tell) them that the best solution is your product.

It's not surprising that product-led companies are priced more than 30 percent higher than the public market index fund.


Product-Led Growth is an action plan that enables accounts to be acquired, retained, and ultimately expanded. The product at the center of any decision should always be at the forefront of a company's strategy.

Jan 22, 2021

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