Glossary
What is product-led growth (PLG)?
Product-led growth (PLG) is a go-to-market approach where the product itself drives acquisition, conversion and expansion: people find it, sign up, get value and pay with little or no contact with sales. Free plans, free trials and in-product sharing are typical. Slack, Notion and Calendly grew this way.
PLG vs sales-led
| Product-led | Sales-led | |
|---|---|---|
| First touch | Sign up | Demo request |
| Who sells | The product | Sales team |
| Deal size | Smaller, many | Larger, fewer |
| Key metric | Activation | Pipeline |
What it needs
- A free plan or trial with no sales call.
- Fast time to value: the first useful result in minutes.
- Onboarding that guides new users to that result.
- Pricing that grows with use: seats, usage, features.
- Built-in sharing or collaboration that brings new users.
Where launches fit
PLG products benefit most from launches and directories, because visitors can try immediately. A directory visitor who can sign up in one click converts; one who must book a demo usually doesn't.
Example
A scheduling tool gives every user a booking link. Each invitee sees the product, some sign up, and teams upgrade when they add colleagues. Most new customers never talk to anyone at the company.
FAQ
Is PLG only for cheap products?
No. Many PLG companies add sales for larger accounts (product-led sales).
Does PLG need a free plan?
A free plan or free trial; the key is self-serve value.
What is time to value?
How long it takes a new user to get their first meaningful result.