What is Product-Led Growth?
Definition
A business strategy where the product itself drives customer acquisition, retention, and expansion through free tiers and self-serve experiences.
Understanding Product-Led Growth
Product-led growth (PLG) is the strategy behind many successful subscription services. Instead of relying on sales teams, the product itself attracts and converts users through free tiers, freemium models, and viral features. Companies like Slack, Zoom, Dropbox, and Figma grew primarily through PLG.
Key PLG mechanics include generous free tiers, inviting teammates (viral loops), usage-based upgrade triggers, and self-serve purchasing. For consumers, PLG benefits mean better free tiers, easier evaluation before purchasing, and products designed to be intuitive without sales pressure.
Related Terms
Freemium
A pricing model that offers basic features for free while charging for premium features, storage, or usage beyond free tier limits.
Free Tier
A permanent free access level for a subscription service that provides basic functionality without any payment required.
Conversion Rate
The percentage of users who upgrade from a free plan or trial to a paid subscription.
Viral Loop
A growth mechanism where existing subscribers naturally invite others to join, creating a self-reinforcing cycle of user acquisition.