Glossary

Product-Led Growth vs. Sales-Led Growth

Definition

Product-led growth (PLG) and sales-led growth (SLG) are two distinct strategies companies use to scale.

  • Product-Led Growth (PLG): The product itself is the primary driver of customer acquisition, retention, and expansion. Customers experience value through free trials or freemium models, with the product serving as the main sales tool.
  • Sales-Led Growth (SLG): Growth is driven by a dedicated sales team that nurtures leads, builds relationships, and closes deals. Here, personal interaction and relationship-building play a central role.

What is the key difference between PLG and SLG?

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PLG relies on the product experience to convert users into customers, while SLG depends on sales teams to guide prospects through the funnel.

Can companies use both strategies?

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Yes, many companies use a hybrid model, starting with PLG to attract users, and then deploying sales teams to convert high-value accounts or enterprise customers.

When should a startup consider PLG?

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-The product is easy to adopt and use without heavy onboarding. -Freemium or trial models can showcase value quickly. -The market values low-friction, self-service adoption.

When is SLG more effective?

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-Products are complex or high-ticket. -Buying decisions involve multiple stakeholders. -Customers require personalized demos, consultations, or negotiations.

What are the benefits of PLG?

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-Lower customer acquisition costs (CAC). -Faster, organic adoption. -Scalable without equally scaling the sales team. -Direct product feedback from users.

What are the benefits of SLG?

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-Stronger personal relationships with customers. -Better suited for complex B2B deals. -Tailored onboarding and support. -Ability to handle objections and negotiate.

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