23 min
8 | Starting with Product-Led Growth (PLG) vs Reworking Sales-Led Business Models – How to Avoid Common Pitfalls and Traps Good Revenue
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- Business
You have two options. Start from scratch with a product-led (PLG) business model, or bolt it on later because customers want to self-serve or competitors have figured it out and you need to compete.Either way you’ve got to map this business model across all 4 go-to-market functions: Product, Marketing, Sales, and Customer Success to improve your odds of success.
Key Takeaways:
Starting with PLG is easier than adding it in later.
Plan ahead for marketing and sales. No matter how amazing your product is, assume you will need good marketing and a great sales team at some point. PLG = marketing-led revenue. Viral growth loops are powerful. But they don’t work for all products and/or use cases. Anticipate that you’ll need to market the value of your product externally and do this well from the start. Do not optimize for signups alone. Unified GTM goals are critical from Day 1. Activated signups are a great benchmark. Just don’t assume every active user is willing to pay for the product no matter how great the product is. Design price, product and GTM for the unique needs, value, WTP of each segment you want to acquire (and retain).
Sales-led business models require careful planning and new processes.
You need to build a new GTM when you add PLG. Adding PLG to Sales-led GTM will cause pain. Know that you’ll have a loss in pipeline when you add on PLG. That’s normal. Update Sales/Marketing goals and compensation plans ahead of time. Your Sales team is probably too big. Design your GTM around the customers, not around your current team. Assume people don’t want Sales unless they ask for it. This is a huge mindset shift for teams. You need to think hard about what the customer actually wants and design your GTM around that instead of catering to the sales person which only helps you in the short run.
Check out the episode for all the tips.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio
Hosted on Acast. See acast.com/privacy for more information.
You have two options. Start from scratch with a product-led (PLG) business model, or bolt it on later because customers want to self-serve or competitors have figured it out and you need to compete.Either way you’ve got to map this business model across all 4 go-to-market functions: Product, Marketing, Sales, and Customer Success to improve your odds of success.
Key Takeaways:
Starting with PLG is easier than adding it in later.
Plan ahead for marketing and sales. No matter how amazing your product is, assume you will need good marketing and a great sales team at some point. PLG = marketing-led revenue. Viral growth loops are powerful. But they don’t work for all products and/or use cases. Anticipate that you’ll need to market the value of your product externally and do this well from the start. Do not optimize for signups alone. Unified GTM goals are critical from Day 1. Activated signups are a great benchmark. Just don’t assume every active user is willing to pay for the product no matter how great the product is. Design price, product and GTM for the unique needs, value, WTP of each segment you want to acquire (and retain).
Sales-led business models require careful planning and new processes.
You need to build a new GTM when you add PLG. Adding PLG to Sales-led GTM will cause pain. Know that you’ll have a loss in pipeline when you add on PLG. That’s normal. Update Sales/Marketing goals and compensation plans ahead of time. Your Sales team is probably too big. Design your GTM around the customers, not around your current team. Assume people don’t want Sales unless they ask for it. This is a huge mindset shift for teams. You need to think hard about what the customer actually wants and design your GTM around that instead of catering to the sales person which only helps you in the short run.
Check out the episode for all the tips.
_
Where to find Neeta:
https://www.linkedin.com/in/neetabidwai/
_
Where to find Good Revenue:
https://dfnstrategy.com/goodrevenue
Sound by RPS Audio
Hosted on Acast. See acast.com/privacy for more information.
23 min