The "Dirty Dozen" of PLG B2B metrics, creating demand for PLG startups, & going from SLG to PLG

Recap

• Dave is always vocal about the commitment to PLG and how long it takes companies to see a proper ROI, especially in Sales-led companies who want to adopt PLG later.

• You will spend $4M in 4 years anyway, so do you want a low CAC or not? PLG is the key to a low CAC, period!

• Companies like Hubspot, Mulesoft, and Mixpanel all brought in PLG later and because of their 4-year commitment, they have not been disrupted by smaller PLG-first companies. They were smart!

• PLG is a whole mindset shift and will require 2 full years building it and then another 2 years optimizing it.

Recap

• Anthony emphasizes the importance of creating demand for PLG startups by focusing on specific user problems in content.

• Using Figma as an example, he demonstrates how Figma exposes deficiencies in traditional design tools, and showcasing Figma's game-changing capabilities helped generate demand. I think this is really smart!

• Figma provides relatable, real-life situations that capture users' attention and resonate with their pain points, stopping the scroll.

• He lists actionable steps for startups to follow:

  • including breaking high-level problems into sub-problems

  • using sub-problems as content themes

  • finding specific user examples and sharing them through distribution channels.

Recap

• Ben tackled many alignment challenges in the hyper-growth PLG environment at Snyk. He shares his biggest learnings dealing with this challenge.

• He recognized the need to establish a shared understanding of product-led growth and growth strategies.

• It’s important to embrace evangelism and over-communication to maintain company alignment, especially sharing killer tactics during company-wide updates. My favorite in the list is: Involving the whole company in the growth process

• Nothing is more critical to alignment than the power of repetition!

5️⃣ Momo Ong

Strategy or Tactic: Strategy

Growth lever = All levers

Recap

• Great breakdown by Momo! He discusses the critical decision early-stage startups face between product-led growth (PLG) and sales-led growth.

• Using Buildium as an example, he demonstrates the $580M impact this choice can have on a company.

• Momo argues that smaller startups must choose between the two approaches due to constraints on resources and the need to focus on building mastery in one area.

• He highlights that there are unavoidable tradeoffs when making this decision, such as pricing, resource allocation, and marketing strategies.

• Ultimately, Buildium's PLG approach led to greater efficiency, profitability, and a $580M acquisition by RealPage.

Strategy or Tactic: Tactics

Growth lever = Monetization

Recap

• Adam Fishman dropped an amazing monetization resource in his newsletter last week where he discusses the challenges of effective monetization and the impact of pricing strategy on acquisition channels, value propositions, and market segments.

• Fishman analyzes the high-friction monetization model and value proposition, and how they are linked to the choice of acquisition channels.

• He proposes moving away from cost-plus pricing and considering value-based pricing, which takes into account the customers' willingness to pay and the perceived value of the product.

• A higher price point may not negatively impact the monetization friction and could allow for the introduction of higher-cost acquisition channels, potentially improving conversion rates and profitability.