Companies like Slack and Dropbox have pioneered the use of Product-Led Growth (PLG). They start by building a product that's indispensable for small teams, then count on low friction and customer advocates to expand throughout the organization. PLG works, at least at first. But it can create challenges for growing companies. The answer isn't to reject PLG. It's to embrace it — but to plan ahead. Eventually, even the best PLG company will need an enterprise sales strategy which takes years to develop. Don't wait until product-led growth stalls to plan for a multi-pronged sales strategy.
What is Product-Led Growth (PLG)?
Product-Led Growth (PLG) is a business model where companies focus on building a product that is essential for small teams, leveraging low friction and customer advocates to drive expansion within organizations. Unlike traditional sales strategies that rely on extensive sales and marketing operations, PLG emphasizes the product itself as the primary driver of growth.
Why do companies need an enterprise sales strategy?
While PLG can be effective initially, it is crucial for companies to develop an enterprise sales strategy as they grow. This strategy takes time to establish and is necessary to ensure sustained growth, especially when product-led growth begins to plateau. Waiting until growth stalls can hinder a company's ability to scale effectively.
What challenges do PLG companies face?
Companies employing a PLG model may face challenges as they scale, such as the need to transition from a low-touch sales approach to a more structured enterprise sales strategy. This shift can be complex and requires careful planning to avoid stagnation in growth, as the initial momentum from PLG may not be sustainable indefinitely.
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