Instead of choosing between Product-Led Growth (PLG) and Sales-Led Growth (SLG), companies should treat them as a portfolio. Test both motions and continuously invest where you see incremental ROI, rather than treating them as mutually exclusive strategies.
Product-led models create deep loyalty and organic demand, providing a stable business foundation. Marketing-led models can scale faster but risk high customer churn and rising acquisition costs if the product doesn't resonate, leading to business volatility. An ideal approach blends both strategies for sustainable scale.
Project-based companies operate on a cash flow mindset, accepting any custom work that brings in immediate revenue. A true product company uses an investment mindset, strategically saying 'no' to short-term revenue to invest in building a scalable asset that can win a market long-term.
A more effective mental model than PLG vs. SLG is analyzing which activities create new demand versus which ones harvest existing demand. Both sales and product can serve either function. Creating demand is always the harder, more critical challenge for any revenue engine.
Avoid a fixed allocation of resources between core products and new initiatives. Instead, treat the investment mix as "seasonal." Periodically and purposefully reassess the balance based on the most pressing business needs—whether it's stabilizing the core for large customers or pushing aggressively into new markets for growth.
To keep growth aligned with product, foster a shared culture where everyone loves the product and customer. This isn't about formal meetings, but a baseline agreement that makes collaboration inherent. When this culture exists, the product team actively seeks marketing's input, creating a unified engine.
For consumption-based models, simple size-based segmentation (SMB, Enterprise) is insufficient. Stripe and Vercel use a two-axis model: company size (x-axis) and growth potential (y-axis). A small company growing at 200% YoY is more valuable and warrants more sales investment than a large, stagnant one.
Treat AI initiatives as two separate strategic pillars. Create one roadmap focused on internal efficiency gains and cost reduction (productivity). Maintain a separate roadmap for developing new, revenue-generating customer experiences (growth). This prevents conflating internal tools with external products.
The tension between growth and profitability is best resolved by understanding your product's "runway" (be it 6 months or 6 years). This single piece of information, often misaligned between teams and leadership, should dictate your strategic focus. The key task is to uncover this true runway.
Don't force your sales team to learn and sell a completely new product. Instead, integrate the new capability into an existing, successful product, making it "first" or "default" for that channel. This reduces sales friction and complexity, leveraging established momentum for adoption.
The most durable growth comes from seeing your job as connecting users to the product's value. This reframes the work away from short-term, transactional metric hacking toward holistically improving the user journey, which builds a healthier business.