When should a startup change from SLG to PLG?
- Category: Growth Hacking Startups
- Date: February 9, 2023
The transition from sales-led growth to product-led growth is not a one-size-fits-all decision and can vary depending on a number of factors unique to each startup. However, here are some general guidelines that can help determine when a startup should make the switch:
- Customer Feedback: If a significant number of customers are finding the product valuable and are willing to pay for it, then that’s a sign that the product is gaining traction. At this point, the startup can focus on scaling the product and reducing the need for a sales team.
- Market Maturity: If the market is already crowded with competitors, a startup may need to rely on a sales team to differentiate itself. However, if the market is still emerging, then the startup may be able to gain a competitive advantage by focusing on product-led growth.
- Budget: Sales-led growth can be expensive, especially for startups that are just starting out. If the startup has limited resources, it may make sense to focus on product-led growth so that the product can speak for itself and reduce the need for a sales team.
- Team Capabilities: If the startup has a strong product development team but a weak sales team, then it may make sense to focus on product-led growth. On the other hand, if the startup has a strong sales team but a weak product development team, then it may make sense to focus on sales-led growth.
Ultimately, the decision to switch from sales-led growth to product-led growth should be based on a thorough analysis of the startup’s strengths, weaknesses, market opportunities, and budget. The transition should be gradual, with the startup continuously refining its approach and measuring the results to determine what works best.
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