Marc Schröder is focused on working with world-class tech entrepreneurs and establishing MGV legacy. getty When it comes to scaling startup, founders have to make many decisions about how to allocate resources, and one of the key decisions they have to make is between product-led growth and sales-led growth.
Product-led growth is strategy that focuses on creating something that is so good, simple to use and easy to sell that it drives growth through word-of-mouth marketing and adoption.
Product-led growth is often associated with freemium models, where version of the product is used to entice users to upgrade to paid version..
On the other hand, I've noticed that many non-technical founders tend to favor sales-led growth, strategy that focuses on sales and marketing efforts to drive growth.
This approach requires founder who can lead and train scalable sales team that can sell the product to potential customers..
It also requires professional sales funnel and scalable process aimed at well-defined target market with clear understanding of the pain points and needs so that the product becomes must have instead of nice to have..
it may not be worth investing in sales-led growth strategy as the cost of acquisition may outweigh the potential revenue..
On the other hand, it may be worth investing in sales-led growth strategy, as the revenue can justify the 4.
In conclusion, choosing between product-led and sales-led growth comes down to the consideration of whether enough product market fit has been found for you to dedicate resources away from continued favor of marketing and sales..
then it may make sense to continue development using the knowledge earned in the market to create something that has better go-to-market potential and would derive more value from later marketing and sales pushes..
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