PLG
PLG, or Product-Led Growth, is a business strategy where the product itself is the primary driver of customer acquisition, expansion, and retention. Users can try, adopt, and experience the core value of a product (often a software tool) for free or at a low cost before committing to a purchase.
How it works
It works by offering a freemium model, free trial, or a self-service demo that allows users to onboard themselves and discover value independently. This approach matters because it aligns company success with user success, reduces traditional sales friction, and creates a scalable growth engine powered by a great user experience.
Examples
- 1.A project management tool that lets a team of 10 use it for free forever, hoping they'll upgrade to a paid plan for more features as the team grows.
- 2.A design platform offering a free tier with basic functionality, where users naturally hit limits and choose to upgrade to access premium templates and assets.
- 3.A developer API service that provides a generous free usage tier, allowing engineers to integrate it into an application before needing a paid subscription for higher volumes.