GTM
PLG or sales-led? Start with PLG
“Your users become your most credible influencers, and they cost you nothing beyond making a product worth talking about.”
PLG or sales-led: which is best to start with? It's a question that I've been asked many times over the course of my career, but one I never really had a great answer to besides "it depends". It seemed that companies doing PLG had a hard time moving to SLG, and vice versa. However, I do think the landscape has changed, and my answer to that question now would be a resounding "PLG". Why?
Enterprise-first is seductive. Larger deals, more predictable revenue, real breathing room when you have VC expectations. But your channels are expensive and limited from day one. You can get 10 top names into a room at an event, and maybe 3 of them turn into massive opportunities, but those 3 opportunities are contingent on it being a well-executed, fun event, which is tough if the room is empty. The math only works when the room is buzzing. And rooms buzz when you've got a fan base.
Bottoms-up also gives you free UGC. Users who experience and enjoy your product talk about you. On Reddit, at meetups, on social. That leads to additional earned media opportunities. (Hello, AEO impact!) Economic buyers are still humans with social media accounts; they're seeing that conversation even when it's not coming through an enterprise channel.
“Your users become your most credible influencers, and they cost you nothing beyond making a product worth talking about.”
And even if you are spending on influencers, having a self-serve product gives them something they can experience and create content around in their own voice and in a way that resonates with their audience.
When you eventually move upmarket, you walk into those accounts with recall already in the room. The security, compliance, and governance features keep the deal afloat, but the awareness gets you in the door.
None of this is groundbreaking. Word-of-mouth, freemium, and PLG have been hallmarks of the SaaS world for ages. Unlike in the past, however, PLG is under a lot of pressure as a revenue motion. AI costs and low barriers to churn mean PLG can be economically unsustainable.
But as a marketing strategy, letting end users experience your product is still one of the most cost-efficient demand gen programs and growth plays you can run, and the foundation that makes your enterprise motion actually land.