Product-Led Growth (PLG)
Product-Led Growth (PLG) is a go-to-market strategy where the product itself drives user acquisition, conversion, and expansion — users discover, try, and buy the product without needing a sales team.
In depth
PLG examples: Slack (free team → paid upgrade), Calendly (free scheduling → team plan), Loom (free videos → team features), Notion (free personal → paid team).
PLG flywheel: 1. Free tier or free trial lowers acquisition friction 2. Product delivers value quickly (time-to-value < 5 minutes) 3. Users invite teammates (viral loop) 4. Team hits usage limits → upgrades to paid 5. Paid users expand seats over time (NRR > 100%)
PLG metrics that matter: - Time to value (TTV): how fast users get their first win - Free-to-paid conversion: 2–5% is typical, 10%+ is excellent - PQL (Product Qualified Lead): users who hit activation milestones - Viral coefficient: how many new users each user brings
PLG vs sales-led: PLG for SMB/mid-market with self-serve buyers. Sales-led for enterprise with $50K+ ACV and procurement processes.
Real example
Calendly grows by letting users send scheduling links — every recipient sees the product without a sales call.
Tools & calculators
Related terms
SaaS (Software as a Service)
Software as a Service (SaaS) is a software distribution model where applications are hosted in the cloud and provided to customers over the internet on a subscription basis, rather than installed locally.
Activation Rate
Activation rate is the percentage of new users who complete a defined 'aha moment' action — the key behavior that correlates with long-term retention.
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