📱📈 PLG: A Product's Silent Army

Insights

Product-led growth (PLG) is the Silicon Valley darling that sounds amazing, and startup founders lust after it….. until they are drowning in free users, zero revenue, and burnout. This week, we’re discussing the basics of PLG, from what it is to the systems required to make it work and more.

Product-led growth (PLG) puts the product at the centre of the customer journey, but it doesn’t sideline sales, marketing, or customer success; it transforms its operations by tightly aligning them with the market and user behaviour inside the product.

In this issue, I cover

• What is Product-Led-Growth?

• How PLG Works - 4 Key Techniques

• Is PLG right for you?

• PLG Systems

Let’s dive in! 🚀 

Understanding PLG

What Is PLG?

Product-Led Growth (PLG) is a strategy where the product itself becomes the engine of growth. Unlike traditional models that rely on sales teams or aggressive marketing, PLG lets the product’s value speak for itself. Imagine a tool so intuitive and impactful that users naturally invite others to join, upgrade without pressure, and champion it organically. This is PLG in action.

Examples:

• Slack: Users invite teammates → viral spread.

• Figma: Designers share files → collaborators sign up.

• Calendly: Scheduling links act as ads.

• Dropbox: “Invite friends for free storage” → exponential growth.

Anti-Example (Sales-Led Growth):

• Oracle ERP: Requires sales demos, contracts, and negotiations.

How It Works

At its core, PLG hinges on accessibility and virality. Companies like Slack and Figma mastered this by designing products that users want to share. For example, when a designer shares a Figma file, collaborators must sign up to edit, turning every project into a growth opportunity. Similarly, Dropbox’s early success came from users inviting friends to earn extra storage, creating a self-perpetuating cycle of adoption.

The magic lies in four key techniques:

1. Freemium Models: Offering a free tier with intentional limitations (e.g., Zoom’s 40-minute meeting cap) nudges users toward paid plans.

2. Viral Loops: Building features that require collaboration (like Notion’s shared workspaces) turns users into recruiters.

3. Self-Serve Onboarding: Ensuring users can derive value immediately, without tutorials or sales calls. Canva’s drag-and-drop editor exemplifies this, no training needed.

4. In-Product Upsells: Timing upgrade prompts while users experience value, such as Miro’s gentle nudge when a team exceeds three free boards.
   

The Silent Machinery of PLG

Behind every successful product-led growth strategy lies an invisible engine, a system with carefully selected infrastructure that transforms user delight into growth. This machinery orchestrates everything from viral loops to seamless upgrades.

At its core are tools like Amplitude, mapping user journeys to pinpoint where curiosity turns to conversion. Stripe lurks in the shadows, turning “Upgrade Now” clicks into instant revenue. Meanwhile, Intercom’s chatbots whisper guidance at the right moment, answering questions users didn’t know they had.

Without these tools, even the best product becomes a leaky bucket. Users sign up, get confused, and leave. PLG isn’t just “build something cool.” It’s wiring the product so every click, share, or “Aha!” moment fuels growth.

PLG Infrastructure Checklist

To pull off PLG, you need:

1. Usage Analytics: Track users' interactions (e.g., Amplitude, Mixpanel).

2. In-App Messaging: Nudge users to upgrade (e.g., Intercom).

3. Frictionless Payments: One-click upgrades (e.g., Stripe).

4. Customer Success: Onboarding emails and help docs (e.g., HubSpot).

5. Viral Mechanics: Built-in sharing (e.g., “Invite teammates” buttons).

🚦 Does PLG work for every product?

In my experience, not every product is built for PLG. Some tools need hand-holding, contracts, or a sales team to make sense. Others? They’re ready to grow on their own.

Before you jump on the PLG bandwagon, ask yourself these three make-or-break questions. If you can’t answer "yes" to at least two, you might be setting yourself up for a world of free users and empty revenue reports.

Generally, products with long sales cycles, compliance regulations, and hand-holding requirements are not great candidates for PLG. However, some elements of PLG may still be beneficial.

On the other hand, consumer apps, developer tools, collaboration tools and products with network effects are fantastic candidates for PLG. If you are not using PLG for these, the product may not achieve its full potential.

The PLG Litmus Test

Ask these three questions:

1. “Can users get value in <5 minutes?” (If no, PLG won’t work.)

2. “Does our product improve with more users?” (E.g., collaboration tools.)

3. “Can we monetise without salespeople?” (E.g., credit card, not consultants.)

If 2/3 are “yes”, → PLG might work.

The Double-Edged Sword of Product-Led Growth

To wrap up this introduction to Product-Led Growth, it is worth noting that PLG isn’t a fairy tale; it’s a strategy with sharp edges. When done right, it turns users into advocates, features into growth engines, and simplicity into scalability. But when done wrong, it’s like planting a garden without watering it: everything blooms briefly, then withers.

For every Slack or Figma, there’s a cautionary tale of hype outpacing reality to watch out for.

Coming Next: The Dark Side of PLG
In our next edition, we’ll dissect why “build it and they will pay” is often a lie. We’ll explore:

• The freemium traps that train users not to open their wallets

• How vanity metrics hide ugly truths (spoiler: “viral” ≠ “valuable”)

• Case Study of a product that exemplifies how not to do PLG. Can you guess the app? Hint: We all ‘lived’ on the app during the Pandemic.

Watch this space!

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