Every SaaS founder wants PLG now. Most categories can't support it. Here's how to tell which side you're on.
PLG wins when
- →The product can demonstrate value in under 5 minutes
- →Single users can adopt without IT/security approval
- →Annual contract value (ACV) is under $10k per customer
- →The buyer is also the user
Sales-led wins when
- →Implementation requires multi-stakeholder buy-in
- →ACV is over $25k and requires procurement cycles
- →Product value compounds with scale (platforms, infra)
- →Competitive landscape rewards relationships
Why hybrid usually fails
Hybrid motions feel appealing but typically underinvest in both muscles. PLG requires world-class onboarding, retention, and self-serve funnels. Sales-led requires pipeline discipline, account-based strategy, and complex enablement. Building both halfway usually beats neither.
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