In hindsight, I think I could have included one more thing: "the right pricing". PLG and the consumerization of enterprise/IT/security/etc demands that the sales cycle can exist with minimal, if any sales team interaction. For the product to lead growth, that cycle needs to be extremely small (days or weeks) with an entry-level price that comes in well under the amount that triggers CFO/procurement involvement, or a freemium tier, or a pull-out-a-credit-card subscription model.
The reason I mention this is that it tends to *immediately* exclude 95%+ of the security market, which tends to take the "build for the rich early, trickle down to the poor later" GTM approach. That means aiming for 5 or 6 digit deals with long sales cycles, filling out SIGs, POCs - all stuff that's generally incompatible with a PLG approach.
Absolutely. This is implied with the thoughts about knowing your audience but you are correct. Making sure that you have the correct business model is required for PLG to be successful.
I have noticed that many customers--especially on the enterprise side--are growing tired of the typical SaaS pricing model that gets you hooked early, and then slowly applies a budget vice by adding new pricing tiers, gated functionality, changing existing pricing and forcing current customers into a higher tier, etc. And sometimes, product pricing models outpace the value the offering provides. Oops.
Customers are tired of these games.
So PLG or not, latent friction in sales processes must be addressed.
Pricing is certainly a tricky task that even the most established of businesses find difficult to perfect. Startups often find themselves in a particularly difficult spot when it comes to pricing, as they may lack the resources and experience necessary to find the right balance. This is further compounded by the fact that many of the more traditional pricing models, such as subscription services and in-app purchases, are becoming increasingly unpopular and seen as predatory. Finding a pricing model that is both effective and meets customer expectations can be a daunting task for any business, let alone a startup. The key is to be creative and look for fresh and innovative ways to price your products or services that will still provide value for the customer.
In hindsight, I think I could have included one more thing: "the right pricing". PLG and the consumerization of enterprise/IT/security/etc demands that the sales cycle can exist with minimal, if any sales team interaction. For the product to lead growth, that cycle needs to be extremely small (days or weeks) with an entry-level price that comes in well under the amount that triggers CFO/procurement involvement, or a freemium tier, or a pull-out-a-credit-card subscription model.
The reason I mention this is that it tends to *immediately* exclude 95%+ of the security market, which tends to take the "build for the rich early, trickle down to the poor later" GTM approach. That means aiming for 5 or 6 digit deals with long sales cycles, filling out SIGs, POCs - all stuff that's generally incompatible with a PLG approach.
Absolutely. This is implied with the thoughts about knowing your audience but you are correct. Making sure that you have the correct business model is required for PLG to be successful.
I have noticed that many customers--especially on the enterprise side--are growing tired of the typical SaaS pricing model that gets you hooked early, and then slowly applies a budget vice by adding new pricing tiers, gated functionality, changing existing pricing and forcing current customers into a higher tier, etc. And sometimes, product pricing models outpace the value the offering provides. Oops.
Customers are tired of these games.
So PLG or not, latent friction in sales processes must be addressed.
Pricing is certainly a tricky task that even the most established of businesses find difficult to perfect. Startups often find themselves in a particularly difficult spot when it comes to pricing, as they may lack the resources and experience necessary to find the right balance. This is further compounded by the fact that many of the more traditional pricing models, such as subscription services and in-app purchases, are becoming increasingly unpopular and seen as predatory. Finding a pricing model that is both effective and meets customer expectations can be a daunting task for any business, let alone a startup. The key is to be creative and look for fresh and innovative ways to price your products or services that will still provide value for the customer.