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Weekly update on the most important PLG companies
There is an undeniable movement happening across technology companies: product-led growth (“PLG”) is becoming the de facto go-to-market motion. Rather than relying on a traditional outbound sales motion, technology companies are designing their products to drive adoption, activation and expansion. Some of the defining characteristics of PLG companies are:
Focus on end user: for PLG companies, the end user is the buyer. The buying criteria is often how this product will help the user do her job better rather than an economic decision made by an executive.
Self-service adoption: a user can get started with the product without having to talk to a sales rep. In most cases, the user can purchase the product with a credit card rather than having to go through finance or procurement.
Immediate product value: the product delivers a magical experience out of the box. The product delivers value before capturing value often through a free trial or freemium pricing model.
Transparent pricing: users can clearly understand pricing without talking to a sales rep. Predictable pricing reduces adoption and expansion friction.
Every Monday, starting next week, I will provide an update on the most important public and private PLG companies. If you have friends or colleagues interested in PLG, I would greatly appreciate if you could please forward this email to them. As we go, I would love to hear your feedback, spotlight ideas and suggestions as I plan to expand and evolve this newsletter. Reach me at email@example.com or @zacharydewitt on Twitter.
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