How to implement product-led growth (PLG) strategies

8 steps 40 min Intermediate

Let your product drive acquisition, activation, and expansion by removing friction and delivering value before asking for payment.

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Step-by-Step Instructions

1

Step 1: Design your product for self-service adoption

Users should be able to sign up, understand value, and achieve their first win without talking to anyone. Simplify onboarding, remove unnecessary fields, provide in-app guidance, and eliminate gatekeepers. The best PLG products are intuitive enough that users can succeed independently. Reduce time to value to minutes, not weeks.

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Product-Led Growth by Wes Bush
Product-Led Growth by Wes Bush

Comprehensive guide to building and scaling product-led companies

Appcues
Appcues

User onboarding platform for building self-service product experiences

2

Step 2: Offer a free trial or freemium tier that delivers real value

Let users experience your product before paying. Freemium gives ongoing free access with limitations; free trial gives full access for a limited time. Choose based on your model. The free experience must deliver enough value to hook users, but create clear upgrade moments when they need more.

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Stripe
Stripe

Payment infrastructure for self-service trial and subscription management

Chargebee
Chargebee

Subscription billing platform for freemium and trial management

3

Step 3: Identify and optimize your activation moment

Activation is when a user experiences the core value prop. For Slack it's sending 2,000 messages; for Dropbox it's uploading a file. Identify your activation metric and ruthlessly optimize the new user journey to get people there fast. Activated users convert and retain at dramatically higher rates.

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Amplitude
Amplitude

Product analytics for identifying and tracking activation metrics

Mixpanel
Mixpanel

Behavioral analytics to track user journey to activation

4

Step 4: Use in-product prompts and messaging to guide users

Don't rely on emails alone. Contextual in-app messages, tooltips, checklists, and feature announcements guide users to value. Show features when they're relevant, not all at once. Educate users progressively as they're ready for more advanced capabilities.

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Pendo
Pendo

Product experience platform for in-app guidance and messaging

Intercom
Intercom

Customer messaging with targeted in-product messages and tours

5

Step 5: Build viral and referral loops into the product

The product itself should encourage sharing: collaborative features, invite teammates, share outputs publicly, "Powered by" branding. Every user should have opportunities to bring in others. PLG products grow because using them creates more users.

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ReferralCandy
ReferralCandy

Referral program platform to build viral loops into your product

Viral Loops
Viral Loops

Platform for creating referral campaigns and viral growth mechanics

6

Step 6: Implement usage-based or seat-based pricing that scales with value

Pricing should align with value delivered. As customers use more, get more value, or add more users, revenue grows naturally. Transparent, self-service pricing removes friction. Avoid "contact sales" until enterprise tiers. Make it easy to upgrade in-product.

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OpenMeter
OpenMeter

Usage-based pricing and metering infrastructure

Stigg
Stigg

Pricing and packaging platform for PLG companies

7

Step 7: Track product metrics and optimize conversion funnels

Monitor: signup → activation → paid conversion → retention → expansion. Identify drop-off points and experiment with improvements. A/B test onboarding flows, pricing pages, and upgrade prompts. Small conversion rate improvements compound into massive revenue gains.

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PostHog
PostHog

Product analytics with feature flags and experimentation

LaunchDarkly
LaunchDarkly

Feature management for A/B testing PLG conversion funnels

8

Step 8: Layer in sales for expansion and enterprise deals

PLG doesn't mean no sales team. Use product-qualified leads (PQLs)—users exhibiting buying signals—to trigger sales outreach. Sales focuses on expansion, enterprise features, and strategic accounts. The product lands users; sales expands them.

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Pocus
Pocus

Product-led sales platform for identifying and acting on PQLs

Correlated
Correlated

Turn product data into sales signals with PQL scoring