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Typical PLG failure points in Sales-led companies
- Product-led growth (PLG) is not just about freemiums and needs to be thoughtfully implemented for sales-led companies.
- Founding a company with only PLG is not advisable since sales are an important function that helps understand customers while PLG and Sales-led (PLS) need to be combined for maximum effect.
- Inbound and outbound sales approaches can both be useful depending on the situation, but the most important thing is to have a ROIC (return on invested capital) better than the competition's.
- A good PLG motion can rarely be driven by sales or product alone; a cross-functional CEO who is willing to implement change is needed.
- Classical sales organizations are not ready for PLG without fundamental changes to how incentive plans are structured, how revenue is evaluated short-term vs long-term, and how requests from different departments are balanced.
- PLG is data-informed but not always purely data-driven since sometimes data isn't the best indicator of what needs to be done, and conviction is the only way forward.
- Customer success is an essential part of any successful PLG motion since it provides a key element of the company's long-term revenue.
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