2. You\u2019re wondering why this whole PLG thing is working so well for some of the world\u2019s biggest upstart tech companies. <\/strong><\/p>\n\n\n\n 3. You\u2019re a touch confused about what the product-led growth model even is<\/em>.<\/strong> Before we cover the star PLG companies who are showing what can be achieved when you let your product do the talking, we first need to go over all the crucial parts of product-led growth.<\/p>\n\n\n\n In this article, we\u2019ll cover:<\/p>\n\n\n\n Of course, if you\u2019re already a product-led growth expert, you can skip all that and dive into our choices of the best PLG companies at the moment and learn what they\u2019ve done so well to earn that accolade.<\/p>\n\n\n The 8 best PLG Companies are \ud83d\udce2<\/span><\/strong><\/p>\n A product-led growth company is a software company where the usability and benefits of the product are its key selling points. That means your Sales team, Marketing team, and Customer Success Teams will focus on building awareness, more than creating and following up on qualified leads. Well, yes and no. Sure, you can (and should) have an awesome product at the heart of a traditionally sales-led SaaS business, but it\u2019s your go-to-market strategy that changes here. Microsoft Excel pretty much glues the world together, for example, but it\u2019s just one product that forms part of a legacy business model that still, really, hinges on enterprise-level sales \u2013 and it doesn\u2019t exactly play all that nice with others. All product-led growth companies share a bunch of common traits that define the sector, and it\u2019s a list of characteristics that can make sales-led businesses green with envy:<\/p>\n\n\n\n The products at the heart of these businesses don\u2019t require much onboarding, and can usually be signed up for in minutes. The goal is to let the user base find their way around and explore feature sets easily, because \u2013 if the product design team has done their stuff \u2013 they\u2019ll usually understand the product\u2019s inherent value straight away.<\/p>\n\n\n\n When you\u2019re not sales-led, you can worry less about upsetting the apple cart. Or, in other words, you can make changes pretty quickly based on user insights without messing with other teams\u2019 strategies. You can also add pricing tiers, features, and integrations constantly, and let your user base discover what\u2019s new with nothing more than an in-app pop-up message. That sense of scalability applies to the user, too \u2013 they can easily upgrade to new tiers by themselves whenever it suits them best.<\/p>\n\n\n\n This is key. Great product-led growth companies experience huge growth from the strength of their offering alone. People use it, love it, and want to tell people about it who then use it, fall in love with it, and tell others. It\u2019s these viral loops that can help you grow. What\u2019s more, in most cases, the product only gets better when more of your colleagues or friends are using it \u2013 as with Slack or Spotify, for example \u2013 so there\u2019s a sense of virality built right into the experience that creates a network effect.<\/p>\n\n\n\n Those core characteristics imbue product-led growth companies with a couple of key benefits that only help compound their growth:<\/p>\n\n\n\n A list of independent features has to work harder than an overall more cohesive experience that can speak for itself. Building a product with an experience<\/em> in mind basically means building something with outcomes<\/em> in mind. Potential customers using these kinds of products usually get to experience value before they pay anything, thanks to free trials and a lack of barriers. Think about the alternative: when you pay money upfront and then use a service for a while, you\u2019re likely to wonder whether renewing that service is worthwhile. There are just three words that when read on a website will tell you if a product truly is product-led or not: Book a demo. <\/em>This phrase will be rare for true Product-led companies. Oh, and you might encounter fewer gated assets on their website that are designed to drum up sales leads for sales reps to follow up on. There\u2019s far more to that, and by no means are we saying that sales-led growth is worse. It just depends on your situation. You can figure out which approach is right for you with our article on product-led growth vs sales-led growth:<\/p>\n\n\n Product-led Growth vs Sales-led Growth: Which is right for you?<\/p>\n <\/div>\n Alright, here\u2019s our list of the top PLG companies that are showing what can be done with an agile business model built on virality and a user-first MO. Let\u2019s take a little look at each one to unpick how and why they\u2019re finding success in the product-led growth space.<\/p>\n\n\n\n Slack<\/a> dominates lists like these for good reason; it\u2019s one of those perfect PLG companies where whole teams are imbibed and onboarded pretty much at once. <\/p>\n\n\n\n Moreover, it\u2019s become a behemoth by offering a clear solution to a growing problem: email overload. Slack starts out free, letting you chat, call, and \u2013 crucially \u2013 share docs via integrations with Office and Google Docs. Then it monetizes among enterprise crowds with essential features like a permanent messaging history and more team members. <\/p>\n\n\n\n Primarily though, Slack is easy to use and presents its undeniable \u2018digital HQ\u2019 use case from the second you start using it. And there\u2019s no wonder it\u2019s crushing it. A recent survey among Product Managers<\/a> rated Slack as the third most used tool overall, only behind ChatGPT and Gmail!<\/p>\n\n\n\n HubSpot<\/a> actually transitioned to becoming a product-led business from a sales-led one, using sales and marketing to drive acquisition. This is a key thing to point out, as it shows that you can successfully pivot your strategy – you\u2019re not locked in. According to David Barron, HubSpot\u2019s global director of sales, the company managed this by creating a kind of company within a company<\/a> to experiment with their PLG strategy:<\/p>\n\n\n\n \u201cThis team operated as a startup within HubSpot, giving us the space and freedom to experiment with a new freemium-style motion. We had our own management structure, product teams, and a small sales\/CS function attached to our new Sales tools.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n This team later integrated into the wider company, directing the focus of HubSpot\u2019s efforts moving forward.<\/p>\n\n\n\n As a collaborative whiteboard solution, Miro<\/a> is a product-led growth company through and through. It cites \u201ccustomer centricity\u201d as the main source of its success \u2013 with a focus on combining user data with interviews and insights programs to shape the future of the product and boost retention.<\/p>\n\n\n\n \u201cWith a higher retention rate and increased user engagement, the amount of monetization touchpoints that customers come into contact with has also improved.\u201d<\/em><\/p>\n\n\n\n Yuliya Malysh<\/strong><\/a>, Head of Growth at Miro<\/strong><\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n Prototyping and design software Figma<\/a> only took ten years to become so disruptive that Adobe ended up having to buy it in order to keep it quite\u2026 For a cool $20 billion. <\/p>\n\n\n\n That momentum was down to a product-led growth model that focused on the bottom end<\/em> of the design market, with a long-term route to the top. It works like this: solo entrepreneurs and students have always been able to use Figma for free. Those guys get really embedded in Figma\u2019s powerful, simple way of working, and then, when they move up the career ladder, their favorite design software comes with them. <\/p>\n\n\n\n Smart. <\/p>\n\n\n\n More than 300 million people participate in Zoom<\/a> calls every day. And yeah, Zoom did<\/em> do very well off of, let\u2019s say, circumstances out of their control (how many pandemic quizzes did you use Zoom for?). But don\u2019t forget that that particular win wasn\u2019t a sure thing; Zoom successfully fought off pre-established video call giants like Skype. Why weren\u2019t they the go-to tool for keeping up to date with friends when shut away in our homes?<\/p>\n\n\n\n That\u2019s because Zoom was completely frictionless. It was like a buttered ice rink. People could invite their colleagues or loved ones into a Zoom call even if they didn\u2019t have an account, and all meetings are still free for up to 40 minutes to this day. Zoom proved that being product-led, getting people in the door, and showing them a solid service is a surefire way to secure market share. <\/p>\n\n\n\n Today, you\u2019re going to be in the minority if you\u2019re using something else.<\/p>\n\n\n\n Spotify<\/a>\u2019s a great example of PLG in the B2C space, with a core offering that only gets better the more people you know who use it. In fact, Spotify has managed to convert around half of its users to paid members \u2013 a much higher percentage than most businesses that offer a freemium product.<\/p>\n\n\n\n It does this by consistently being at the forefront of music streaming. Way back when, it was the first app that let you listen to music on your phone while using another app. Since then it\u2019s constantly evolved to become a place to discover new podcasts, buy gig tickets, and a source from which to embed playlists on every third-party platform imaginable. In terms of virality, there\u2019s little that can beat Spotify\u2019s yearly \u2018Wrapped\u2019 roundups \u2013 with tech influencers routinely bemoaning Apple\u2019s comparative efforts<\/a>.<\/p>\n\n\n\n Calendly<\/a> exemplifies a product-led growth (PLG) company by offering a user-friendly scheduling tool that addresses the universal challenge of coordinating meetings. Its freemium model allows users to experience the platform’s value firsthand, encouraging widespread adoption. <\/p>\n\n\n\n Each time a user shares a scheduling link, it introduces new individuals to Calendly, creating a viral growth loop<\/a> that fuels organic growth. This inherent virality – that can be taken advantage of further through referral programs – combined with a focus on delivering immediate value, has propelled Calendly to a $3 billion valuation, demonstrating the effectiveness of its PLG strategy. <\/p>\n\n\n\n Grammarly<\/a>\u2019s strength is in how platform-agnostic it is, but that wasn\u2019t always the case. Originally, it existed as a standalone tool, siloed from all the usual text fields you spend your time in. <\/p>\n\n\n\n When Grammarly offered a plug-in for Microsoft Word, though, it started to experience real organic growth. It\u2019ll now gladly check your spelling for you across your entire desktop, as well as within Google Docs, with a freemium product that constantly upsells by drip-feeding grammar suggestions that normally stay locked away behind the premium tier. <\/p>\n\n\n\n It\u2019s this interconnectivity that reduces the friction for users to try it out, making it a great adopter of Product-led growth.<\/p>\n\n\n\n The best way to ensure that your product-led growth is actually product-led is to focus on making and evolving something that serves the end user. Winning over the people who use your solution is so important in securing the sense of virality and experience-first credence that this sector is known for.
Whatever the case, we\u2019ve got you covered in this article.
The times they are a-changin\u2019, and the way businesses, well\u2026 do business<\/em> is too. For many in the tech sector, Sales and Marketing are taking a backseat to organic word of mouth. This is driven by freemium<\/a> models, stellar out-of-the-box experiences, and a kind of emancipation of the whole software procurement process.
But we\u2019ll get to that. <\/p>\n\n\n\n\n
\n
What are PLG companies?<\/h2>\n\n\n\n
With a PLG company, trying your product should be enough to convince people. By just checking it out, they\u2019ve had their wow moment<\/a>, meaning that typically PLG companies have a short Time to Value<\/a>. Its must-have<\/em> usability will drive revenue growth and retention automatically.
Hang on though; doesn\u2019t that just mean having a good product? Shouldn\u2019t everyone strive for that? <\/p>\n\n\n\n
With product-led growth companies, the product itself is your strategy. When people use it, it sells itself. A product-led growth company is built around product development and user insights. They\u2019re agile, disruptive, and data-driven, with an operational emphasis on learning where experience gaps lie and working to plug them quicker than their competitors.
Usually, the barrier to entry with products in this category is low enough for people to just step over \u2013 letting people get onboard easily, explore what you\u2019ve got to offer before they\u2019ve spent a single penny, and then feel naturally inclined to loop their colleagues and\/or friends in too. In B2B, that growth is often driven by the people with boots on the ground, rather than CIOs.
Product-led growth companies often grow fast and reach their product\u2019s maturity stage<\/a> in record time.<\/p>\n\n\n\nWhat are the characteristics of PLG companies?<\/h2>\n\n\n\n
Out-of-the-box value<\/h3>\n\n\n\n
Agility and scalability<\/h3>\n\n\n\n
Word-of-mouth virality<\/h3>\n\n\n\n
What are the benefits of being a product-led growth company? <\/h2>\n\n\n\n
1. Experience-first<\/h3>\n\n\n\n
Whereas more traditional business models require constant upselling of new bolt-ons, product-led growth companies focus on letting people dive in and experience how it can help them tackle their pain points from the get-go. Slack, for example, offers features like channels, document sharing, and meetings. But it\u2019s the experience \u2013 of being a \u2018digital HQ\u2019 \u2013 that\u2019s much more instantly apparent. By providing a good user experience from the off to all user segments, you\u2019ve got a product that will do the work itself.<\/p>\n\n\n\n2. Retention baked in<\/h3>\n\n\n\n
With product-led models, by the time a user has to pay to keep using a product they\u2019ve come to love, they\u2019ll already be pretty sure about things. That breeds long-lasting retention because \u2013 at the point where money does change hands \u2013 users will already feel like they can\u2019t live without the experience and outcomes that the product enables.<\/p>\n\n\n\nPLG vs sales-led growth: key differences<\/h2>\n\n\n\n
That\u2019s because PLG companies put the product front and center, encouraging users to download it and wait for you to discover its value without the hand holding. Sales-led companies, on the other hand \u2013 think about your Adobes and your Salesforces \u2013 are all about chasing big-fish leads.
The big difference is in who\u2019s being targeted. Instead of being sold to CIOs and managers, PLGs are marketed towards users \u2013 users who can get themselves up and running before then making a case that the business should adopt this cool new thing<\/em> they\u2019ve found.
Sales-led propositions also tend to be larger, self-contained systems. They might offer integrations with other apps and software, but they\u2019re often standalone destinations that are siloed from other products. Product-led solutions, meanwhile, are usually all about APIs, integrations, and becoming part of a wider ecosystem. Like how Grammarly integrates into Google Docs, or how ProdPad plays nice with Dropbox, Github, and more<\/a>.<\/p>\n\n\n\n8 PLG companies who are nailing it<\/h2>\n\n\n\n
1. Slack<\/h3>\n\n\n
![\"Logo](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Slack-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n2. HubSpot<\/h3>\n\n\n
![\"Logo](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/HubSpot-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n\n
3. Miro<\/h3>\n\n\n
![\"Miro](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Miro-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n4. Figma<\/h3>\n\n\n
![\"Logo](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Figma-Logo-2.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n5. Zoom<\/h3>\n\n\n
![\"Zoom](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Zoom-Logo-1.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n6. Spotify<\/h3>\n\n\n
![\"Logo](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Spotify-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n7. Calendly<\/h3>\n\n\n
![\"Calandly](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Calendly-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\n8. Grammarly<\/h3>\n\n\n
![\"Logo](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2022\/11\/Grammarly-Logo.png\"){kind=logo}
<\/figure>\n<\/div>\n\n\nHow to be a PLG company yourself?<\/h2>\n\n\n\n
Traditional sales-led businesses tend to focus their efforts on making a compelling case for the people holding the purse strings. After all, how many times have you been in an office environment where some sluggish system that looks like something from the early \u201890s has been foisted upon you?
Being product-led is ensuring you\u2019re the opposite of that \u2013 it means creating a solution that people actually want to use. The kind of thing you almost wouldn\u2019t want IT to find out about\u2026 If you didn\u2019t need them to pay for it.
The takeaway? To adopt that mindset, you\u2019ll need to strip things back to basics, think lean, and become as agile as possible. Here\u2019s how lean teams drive market disruption<\/a>.<\/p>\n\n\n\n
![\"ProdPad's](\"https:\/\/www.prodpad.com\/wp-content\/uploads\/2025\/02\/Product-Roadmap-Template-Blog-Banner-2-1024x240.png\")
<\/a><\/figure>\n\n\n\n