---
title: "Product-Led Growth (PLG): Definition and Examples"
description: "Product-led growth (PLG) is a go-to-market strategy where the product itself is the main way to acquire, convert and expand customers, usually through a..."
path: /glossary/product-led-growth
family: glossary
updated: 2026-10-17
html: /glossary/product-led-growth
sources:
  - "https://productled.com/blog/product-led-growth-definition"
  - "https://amplitude.com/blog/product-led-growth"
facts:
  term: "Product-led growth (PLG)"
  also_called: "PLG, product led growth, product-led sales, self-serve growth"
  category: "Marketing"
---

# Product-led growth (PLG)

Product-led growth (PLG) is a go-to-market strategy where the product itself is the main way to acquire, convert and expand customers, usually through a free plan or trial that lets users get value before they talk to sales.

## What Is Product-Led Growth (PLG)?

**In short:** In a PLG motion, people sign up on their own, start using the product and upgrade when they hit a limit or need a team feature.

Growth comes from the product spreading inside companies through invites and sharing. Common entry points are freemium plans, free trials and open-source editions.

It works best for products that are quick to try and show value fast, used by people who can adopt them without a committee. It keeps acquisition costs low at the small end of the market, but large deals still need sales: security reviews, procurement and multi-team rollouts do not happen through a credit card form.

## Product-Led Growth Example

Example: a diagramming tool has 50,000 free users. It flags companies with 10 or more active users as product-qualified accounts, finds the IT or engineering leader at each and offers a team plan. In this example, 6% of flagged accounts move to a paid team plan within 60 days.

## Product-Led Growth in Practice

Many PLG companies add a sales layer as they grow, often called product-led sales. Reps watch for product-qualified leads, such as a company with 15 active users on a free plan, and reach out to the buyer at that account. Outbound helps here: the users are known, but the person who signs the contract often is not.

## FAQ

### What is the difference between product-led and sales-led growth?

In product-led growth, users sign up, get value and often buy without a salesperson. In sales-led growth, reps run the process from first meeting to contract. Many companies run both for different segments.

### What is a product-qualified lead (PQL)?

A user or account that has got real value from a free plan or trial, shown by a usage milestone such as inviting teammates or hitting a plan limit. Sales can then focus on the accounts most likely to upgrade.

### What are examples of product-led growth companies?

ProductLed lists Calendly, Slack, Notion and Typeform among its examples. In each, people can start on a free plan on their own, before a team or company pays.

### Does product-led growth still need a sales team?

Usually, once it sells to larger companies. Self-serve covers small teams, while bigger accounts need help with security, procurement and company-wide rollout.

## Do this in Ken

### Do This in Ken

Use Ken Search to find the budget owner at companies whose employees already use your free plan, then reach them with a short sequence in Campaigns.

- Link: [Do This in Ken](/features)

## Related

- [GTM Glossary](/glossary): Every GTM term, grouped by topic.
- [Go-to-market strategy (GTM strategy)](/glossary/go-to-market-strategy)
- [Inbound marketing](/glossary/inbound-marketing)
- [Customer acquisition cost (CAC)](/glossary/customer-acquisition-cost)
- [Churn rate](/glossary/churn-rate)
- [Upselling](/glossary/upselling)
- [Ken features](/features)

## Sources

| Source | URL | Checked |
| --- | --- | --- |
| ProductLed: Product-led growth definition and examples | https://productled.com/blog/product-led-growth-definition | 2026-10-17 |
| Amplitude: What is product-led growth | https://amplitude.com/blog/product-led-growth | 2026-10-17 |

## Changelog

- 2026-10-17: Page published.