Product-Led Growth (PLG)

A go-to-market strategy in which the product itself, rather than a sales team or marketing campaign, is the primary driver of customer acquisition, expansion, and retention. In a PLG model, the free trial or freemium tier is not a demo; it is a fully functional experience that leads users toward an activation moment. The upgrade to a paid tier is triggered by the user's own escalating needs — hitting a limit, wanting a premium feature — rather than by a salesperson's outreach. PLG companies typically have lower customer acquisition costs and higher expansion revenue because the product continuously demonstrates its value.

Example: Canva's free tier allows users to create and export designs; paid features are gated but visible, and the upgrade prompt appears only when the user tries to use a premium template or remove a background.