GenGrowth

Product-Led Growth

A go-to-market strategy where the product itself drives acquisition, conversion, and expansion.

Product-led growth (PLG) flips the traditional sales-led model. Instead of relying on sales teams to convert leads, the product does the selling through free trials, freemium tiers, or self-serve onboarding.

Companies like Slack, Notion, and Figma exemplify PLG. Users discover value before ever talking to sales, and word-of-mouth spreads adoption organically within organizations.

PLG requires a product that delivers value quickly, an intuitive onboarding experience, and built-in viral mechanics. The payoff is lower customer acquisition cost and faster time-to-value, but it demands significant upfront investment in product quality.

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Related Terms

Activation Rate

The percentage of new users who complete a key action that signals they have experienced the product's core value.

Growth Loop

A self-reinforcing system where the output of one step feeds into the input of the next, creating compounding growth.

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