Product-Led Growth: the model that is transforming startup growth

Have you ever heard of PLG (Product-Led Growth)? If you haven’t heard of it yet or want to better understand why this model is dominating startup growth strategies, this article is for you.  

The truth is that, in recent years, many companies have stopped investing fortunes in sales and marketing to focus on what really matters: a product so good that it practically sells itself. And that's where PLG comes in, with a model that places the product as the protagonist of the entire customer journey. 

After all, what is PLG?

Let's get straight to the point. PLG stands for Product-Led Growth. This means that the product itself is responsible for attracting new users, engaging them, retaining them, and even expanding your customer base. No need to rely exclusively on a sales team making calls or running fancy marketing campaigns. 

The customer tests, tries out, feels the value of the solution in practice, and, if it is really good, decides on their own to continue with the purchase. This is why products with free or trial versions (the famous freemium and free trial) are so common in this model. They are not just a “free sample”, they are a central part of the strategy. 

But why is this model so popular? 

Well, think about the behavior of today's consumer. They want autonomy, agility and, above all, to feel real value before taking the card out of their pocket. And that's exactly what PLG delivers.  

This model works because: 

• It puts the user experience at the center of everything. If the product delights the user from the very first use, the chances of conversion increase, and a lot.  

• It is highly scalable. A well-made product can grow with less human effort involved. 

• The cost of customer acquisition (the famous CAC) drops drastically. After all, the product itself is the one selling. 

• Growth becomes organic. Satisfied users recommend the tool, and the cycle feeds back. 

In other words, in addition to being efficient, PLG is sustainable. And this makes perfect sense for startups that need to grow quickly, but without burning resources. 

And what changes in the sales funnel? 

You're probably used to the classic model: marketing attracts, sales convinces, and the product comes later. In PLG, this changes completely. Here, the funnel is inverted: the product enters right at the beginning of the journey.  

From the very first click, the user is already in contact with the tool. They try it out themselves, ask questions and advance as they discover value. This makes the journey more natural and reduces obstacles that previously hindered conversion. 

The result? A shorter, smoother, and much more efficient funnel. 

Who is already doing this successfully? 

If you think this all sounds too good to be true, just look at the market. 

Slack, for example, allowed any team to create a free account. It was so intuitive and useful that it quickly spread throughout companies, converting entire teams to paid plans. 

Dropbox also went viral by offering free space and rewarding those who referred friends. The campaign was a success because the product was simple, functional and delivered value right away. 

Another example is Notion, a productivity tool that started with individual users. They loved it so much that they took it to their teams, generating traction within organizations. 

And of course, we can't forget Zoom, which exploded during the pandemic thanks to a fluid experience and a well-structured freemium model. 

What do all these cases have in common? Products that deliver immediate value. That’s the essence of PLG. 

What can't be missing from a PLG strategy? 

If you are thinking about applying this model to your business, great. But it is important to know that, despite being powerful, PLG requires consistency, planning and focus on delivering value. 

Onboarding needs to be flawless. Don't leave the user lost on their first visit. They need to quickly understand how to take advantage of your solution. 

Design and user experience are also non-negotiable. A confusing product or one with a poor interface is unlikely to succeed in this model. 

You’ll also need to track key metrics like engagement, activation, retention, and growth. This data will show you where you’re losing users and what you need to improve. 

Another essential point: automation and scalability. Support, communication, upgrades, in other words, everything must work smoothly and automatically.  

And don’t forget about company culture. PLG requires a team that breathes product, knows users and is committed to constantly evolving. 

But not everything is rosy, right? 

The PLG model also has its challenges, and you need to be aware of them before you go all in. 

First, it requires an excellent product from the start. This means investing in technology, UX, and continuous testing. You can’t grow with a mediocre solution. 

Additionally, it can take time to see a return on investment. Since many users start out free, the model relies on upgrades and retention to generate revenue, and that takes time. 

Finally, PLG is highly dependent on strong organic engagement. If the experience isn’t really good, the strategy loses strength. In other words, it’s not enough to just offer something for free: you have to delight. 

How to begin? 

If you believe PLG makes sense for your startup, start by mapping out the core value of your product. What functionality shines in the eyes of the user? What can be released for free to generate delight? 

Then, work on a simple and efficient onboarding flow. The goal is to get the user to their first “win” as quickly as possible. 

Collecting constant feedback is also crucial. Knowing what users are feeling and where they are getting stuck is what will guide your evolution. 

And of course, align your team. Everyone needs to understand that the product is the heart of the strategy, from support to development, from leadership to operations. 

Is PLG just a trend?

Absolutely not. Product-Led Growth is not just another tech fad. It represents a change in mindset, a smarter, more user-centric way to grow consistently. 

If you are looking for scalable growth, engaged customers and a real competitive edge, PLG can (and should) be the next step for your startup. 

Now tell me: is your product ready to be your company's main growth channel? 

If this content helped you, share it with someone who also needs to know about PLG. Or, if you want to take the next step, contact our team, and we will help you put this into practice with strategy and focus on what really matters: delivering value.