Product-Led Growth (PLG)
Product-Led Growth (PLG) is A go-to-market strategy where the product itself drives customer acquisition, conversion, and expansion through free trials, freemium tiers, and in-product upgrade prompts.
Product-led growth flips the traditional sales model: instead of convincing prospects to buy before they use the product, PLG lets the product sell itself. Users sign up, experience value, and then convert to paid. Slack, Zoom, Figma, and Notion all grew this way. It's not a new concept, but it's reshaping how RevOps thinks about funnels and metrics.
PLG Models
- Freemium: Free tier with limited features. Users upgrade when they hit the ceiling. Works when the free product is useful enough to create habit but limited enough to create upgrade pressure.
- Free trial: Full product access for a limited time (14 or 30 days). Creates urgency but also abandonment if the trial window passes without activation.
- Open source: Free core product, paid enterprise features. Long conversion cycle but deep product loyalty.
PQL vs MQL
In a PLG model, the MQL gives way to the PQL: a Product Qualified Lead. Instead of scoring based on content downloads and email clicks, PQLs are scored on product usage. Did they invite teammates? Did they use a premium feature? Did they hit a usage threshold? These signals are far stronger indicators of purchase intent.
RevOps Implications
PLG doesn't eliminate sales. Most successful PLG companies run a hybrid model: self-serve for small accounts, sales-assisted for expansion and enterprise. RevOps has to build infrastructure for both motions, track conversion funnels from signup to PQL to paid, and manage the handoff from product-led to sales-led within the same account.
For how PLG fits into the broader GTM landscape, see What Is RevOps? For the metrics that matter in a PLG model, CLV becomes even more critical: see Customer Lifetime Value.
Frequently Asked Questions
Does PLG replace the need for a sales team?
Rarely. Pure PLG works for low-ACV, high-volume products. Most B2B companies end up with a hybrid model: PLG for acquisition and SMB, sales-assisted for mid-market expansion and enterprise deals. Even Slack and Zoom have large sales teams focused on enterprise accounts.
What metrics matter most in a PLG model?
Activation rate (% of signups who reach the 'aha moment'), time-to-value, PQL conversion rate, free-to-paid conversion, expansion revenue from self-serve upgrades, and net revenue retention. Traditional funnel metrics like MQLs become less relevant; product usage metrics take their place.
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