Product-Led Growth (PLG)
A growth model where the product itself drives acquisition, retention, and expansion.
Definition
Product-led growth uses the product as the primary vehicle for customer acquisition. Users try the product (often through a freemium or free trial model), experience value, and then convert to paid. PLG companies include Slack, Dropbox, Figma, and Notion. The key is that the product must be good enough that users become advocates.
Why it matters for founders
PLG typically has lower CAC than sales-led models because users self-serve. It scales more efficiently and creates natural viral loops. However, it requires a product that delivers value quickly without human handholding.
Example
Figma lets designers use the full product for free (up to 3 projects). Teams naturally adopt it, then the company upgrades to a paid team plan. No sales call needed.
How Foundra helps
Foundra's Onboarding & Activation card helps you design the self-serve experience critical for PLG, and the Launch Assets card includes your free-tier strategy.
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Related terms
Customer Acquisition Cost (CAC)
The total cost to acquire one new customer.
Churn Rate
The percentage of customers who stop using your product in a given period.
Go-to-Market Strategy
Your plan for reaching and acquiring your first customers.
Minimum Viable Product (MVP)
The simplest version of your product that lets you test your core hypothesis with real users.