In recent years, product led growth (PLG) has gained significant momentum, with companies like Slack, Zoom, and Dropbox proving how powerful a product-focused strategy can be.

However, for many SaaS businesses, the traditional sales led growth (SLG) model, driven by experienced sales teams, still plays a crucial role in generating revenue and building customer relationships.

So, which approach is right for your company?

In this article, we’ll break down the key differences between PLG vs SLG, highlighting the benefits, challenges, and strategies each model offers. Here's what we’ll cover:

• What product led growth and sales led growth are
• Key differences between the two models
• Benefits and challenges of PLG
• Benefits and challenges of SLG
• When to choose one model over the other
• Real-world examples of SaaS using these strategies successfully

Ready to find the best strategy for your SaaS business? Let’s dive in!

Overview of product led growth and sales led growth

What is product led growth?

Product led growth is a business strategy where the product itself plays the primary role in driving user acquisition, retention, and expansion. Instead of relying on a sales representative to push sales, PLG focuses on the product’s inherent value to convert users into paying customers.

For SaaS companies, this means offering free trials or freemium versions that allow potential customers to experience the product firsthand. The key to success in PLG lies in delivering a superior user experience and continuous product improvements that naturally guide users through the customer journey, eventually leading to organic growth and long-term retention.

What is sales led growth?

Sales led growth is a more traditional approach where a sales team plays a central role in customer acquisition and revenue generation. In this model, sales representatives interact with potential customers, guiding them through the sales funnel.

A sales led strategy typically works well for SaaS products with more complex or high-ticket offerings, where a hands-on, personalized sales approach is necessary. This model depends heavily on relationship-building, product demos, and sales qualified leads (SQLs) to close deals.

Sales teams actively engage with prospects to address pain points and tailor solutions, making the human touch a crucial element of the growth process.

Key differences between product led growth vs sales led growth

The primary distinction between product led growth vs sales led growth lies in how they acquire and retain customers. PLG relies on the product’s ease of use and inherent value, while SLG leverages the expertise of a sales rep.

💡 In PLG, customer acquisition costs are typically lower since the product does much of the selling itself. In contrast, a sales led strategy often requires higher customer acquisition costs due to the need for skilled sales representatives and longer sales cycles.

Another key difference is the focus on the customer journey. PLG emphasizes a seamless onboarding process and high levels of user engagement from the start, while SLG relies on building trust and relationships through sales strategies.

Both models impact revenue growth differently, with PLG driving organic, self-sustained growth, and SLG using targeted sales strategies to close high-value deals.

Understanding the product led strategy

Core components of product led growth

At the heart of the product led growth approach are the principles of self-service and product-driven customer acquisition. PLG companies often rely on strategies like free trials or freemium versions that allow users to explore the product before committing to a paid subscription.

The focus is on creating a product that demonstrates its value quickly, ideally guiding users to an aha moment - when they realize how the product meets their needs. Additionally, customer feedback plays a crucial role in continuously improving the product, ensuring it evolves in response to user needs.

Successful PLG strategies also emphasize the onboarding process, making it smooth and intuitive to increase user engagement early in the customer journey.

Benefits of product led growth for SaaS companies

One of the biggest advantages of PLG for SaaS is the potential to significantly reduce customer acquisition costs (CAC).

Since users experience the product firsthand and decide whether to convert to paying customers, less reliance on sales means lower costs per acquisition. Furthermore, the self-service nature of PLG often leads to higher customer retention, as users who find value in the product early are more likely to stick around long-term.

This approach also fosters organic growth through word-of-mouth referrals, where satisfied users recommend the product to others, helping the business grow without heavy investment in marketing or sales.

Challenges of implementing a product led growth model

Despite its many advantages, implementing a product led growth model comes with its own set of challenges. For one, ensuring that users reach that all-important aha moment can be difficult, particularly if the product is complex or requires significant onboarding.

Additionally, while PLG reduces upfront sales efforts, it requires a robust product development team to continuously iterate based on customer feedback. Scalability can also be an issue, as managing a growing user base without a traditional sales team may strain customer support and onboarding resources.

Aligning product development with evolving customer needs is essential to maintain momentum in a PLG strategy.

How to build a product led growth strategy

To develop a successful product led growth strategy, businesses should start by offering a frictionless free trial or freemium model that showcases the product's core value.

💡 The onboarding process should be seamless and geared towards getting users to the product’s aha moment quickly. Consistent user feedback should inform regular updates and improvements to ensure the product remains relevant and user-friendly. It's also critical to monitor user engagement metrics to optimize the user journey.

Finally, offering proactive customer support during the onboarding phase can help bridge any gaps where users might struggle, ensuring a smoother transition from free to paid customers.

Understanding the sales led growth strategy

Core components of sales led growth

SLG relies heavily on a structured sales process where a dedicated sales team drives customer acquisition and engagement.

The approach focuses on personalized interactions, often involving sales representatives who directly engage with potential customers, providing product demos and addressing specific needs. This model is ideal for companies offering more complex solutions, where customer education and hand-holding are crucial for closing deals.

Sales qualified leads are a key focus, as the sales team works to identify and nurture the highest-value prospects through the sales funnel, with the ultimate goal of converting them into paying customers.

Benefits of sales led growth for SaaS companies

One of the main advantages of the sales led approach is the ability to create a highly tailored and personalized sales process. Sales teams can develop strong relationships with potential customers, addressing their concerns and offering customized solutions that align with their business needs.

This personal touch often results in higher conversion rates, particularly for high-ticket products that require more consideration. Additionally, the hands-on involvement of a sales team can help shorten the sales cycle by actively managing and guiding prospects through each stage of the decision-making process.

For SaaS companies, this approach can lead to higher revenue growth as larger deals are closed through direct interaction.

Challenges of implementing a sales led growth model

While sales led growth offers many advantages, it also presents several challenges, particularly in terms of cost and scalability. Maintaining a skilled sales team can be expensive, and the process of acquiring customers through direct sales efforts typically results in a higher customer acquisition cost compared to PLG.

Additionally, managing a long sales cycle can be resource-intensive, requiring sustained effort from sales reps to nurture leads over time. As the company scales, the demand for sales resources increases, which may limit the business’s ability to expand rapidly.

For these reasons, SLG is often best suited for businesses targeting a smaller pool of high-value potential customers.

How to build a sales led growth strategy

Building a successful sales led growth strategy starts with assembling a skilled sales team capable of driving the sales process from start to finish. A well-structured sales funnel is essential, guiding prospects from awareness to consideration and ultimately conversion.

💡 To maximize effectiveness, it’s crucial to align sales and marketing teams, ensuring both are working together to generate SQLs. Additionally, having a clear go-to-market strategy that outlines the steps for acquiring, nurturing, and closing leads is vital.

Lastly, ongoing customer support from both sales and post-sales teams helps ensure that new customers are fully onboarded and satisfied.

Comparing product led growth vs sales led growth

PLG vs SLG: Which model fits your SaaS business?

Choosing between PLG and SLG depends largely on your SaaS company’s product complexity, target audience, and growth goals. PLG works best for businesses offering simpler, self-explanatory products where users can quickly see value without the need for a sales rep.

On the other hand, a sales led approach is better suited for companies with more complex offerings that require hands-on guidance through the sales process. The decision often boils down to whether your product can "sell itself" or if human interaction is needed to close deals and build trust.

When to choose product led growth

A product led strategy is ideal when your product is intuitive, and users can experience its value early, such as through a free trial or freemium model. SaaS businesses targeting a broad audience, with lower acquisition costs, and a focus on customer engagement and retention may benefit more from PLG.

This model is especially effective for companies that prioritize organic growth, leveraging word-of-mouth referrals and customer feedback to improve the product and acquire new users. If your goal is to scale quickly with a self-serve product that encourages viral growth, PLG might be the right choice.

When to choose sales led growth

Sales led growth is the better option when your product requires a deeper understanding or has a longer sales cycle. Companies selling high-value, enterprise-level solutions often find that a personalized approach driven by a dedicated sales team leads to better results.

In this model, sales reps can tailor their messaging and demos to meet the specific needs of each prospect, which is crucial for closing larger deals.

If your SaaS company’s success hinges on building long-term relationships and guiding potential customers through a more complex buying journey, then an SLG approach will be more effective.

Can you combine product led and sales led strategies?

For some SaaS businesses, a hybrid approach that blends elements of both PLG and SLG can deliver the best results. In this model, the product plays a central role in attracting users through trials or freemium models, but a sales team steps in to engage with high-value prospects or sales qualified leads.

This product led sales strategy allows companies to capture a wide audience through product-led methods while using personalized sales strategies to convert larger or more complex deals. Combining both strategies can provide a well-rounded growth approach that maximizes reach while maintaining the ability to close high-value sales.

Practical examples and case studies

Examples of successful product led companies

Several leading SaaS organizations have harnessed the product led approach to drive impressive results. Slack, for example, built its business by offering a freemium model, allowing users to experience the platform’s value before upgrading to a paid subscription.

Similarly, Dropbox used a simple, intuitive product with a referral program to encourage organic growth through word-of-mouth marketing. Both products exemplify how product led companies can lower CAC and enable rapid scaling through user-driven engagement.

These examples show how SaaS companies can thrive by letting their product sell itself.

Examples of successful sales led companies

On the flip side, SLG has been the cornerstone of success for enterprise-level companies like Salesforce and Oracle. Both businesses rely heavily on experienced sales teams to nurture relationships with high-value clients.

In these cases, the sales process is crucial, as the products are complex and require personalized demos and tailored solutions. By focusing on sales qualified leads and building strong, long-term customer relationships, these companies have achieved significant revenue growth.

The SLG approach has allowed them to close large, enterprise-level deals that wouldn’t be possible with a purely product-led model.

Lessons from combining product led and sales led models

Some companies, like Atlassian, have found success by combining elements of both PLG and SLG. Atlassian starts with a product led model, offering freemium products like Jira, but later incorporates sales strategies to upsell larger deals to enterprise clients.

This hybrid approach allows them to reach a broad audience while still capturing high-value sales. This strategy highlights how blending both models can maximize growth opportunities for companies targeting both individual users and large organizations.

Choosing the right growth strategy for your SaaS business

Choosing between PLG and SLG is a critical decision for any SaaS business.

While both models offer advantages, product led has increasingly become the preferred choice for modern SaaS businesses due to its emphasis on organic growth, lower acquisition costs, and the ability to let the product drive adoption.

SLG, with its reliance on sales teams, may still work well for companies with complex offerings, but it often involves higher costs and a longer sales funnel.

💡 If your product is easy to use, scalable, and built for a broad target audience, a product led approach is likely the more efficient and cost-effective strategy. For businesses targeting large enterprises with specific needs, a sales led model may still be necessary, but even here, a PLG foundation can complement sales strategies.

Ultimately, prioritizing product-driven growth is often the best path to sustainable success in today’s SaaS landscape.

Let Digi Storms help drive your SaaS growth

At Digi Storms, we specialize in helping SaaS businesses unlock their growth potential, whether through product led growth, sales led growth, or a combination of both.

Our tailored email marketing strategies can enhance your customer acquisition, retention, and overall business growth. We’ll work closely with your team to develop the perfect marketing plan that aligns with your growth model and business goals.

Whether you’re scaling through PLG or nurturing high-value leads with a sales led model, our expertise will help you succeed.

Ready to accelerate your SaaS growth? Book a strategy call with Digi Storms today!

Note: The content of this article is inspired by resources from ProductLed.