Why PLG Is Now Table Stakes (Not a Differentiator)

Read time: 5 minutes.

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A few years ago, talking about “product-led growth” (PLG) got you instant credibility on any SaaS pitch deck.

Investors leaned in. Founders flexed their freemium engines. Prospects would sign up simply because you let them “try it free.”

Fast forward to 2025: PLG isn’t a differentiator; it’s the baseline SaaS buyers demand. If you’re selling software and still trying to use “self-serve onboarding” or “in-app trial” as your edge, you’re late to the party.

The question now isn’t “should we do PLG?” It’s “how do we do it better and when do we add sales, CS, or hybrid motions to win?”

[1] Why PLG Is Table Stakes (Not a Moat)

Core metrics, pitfalls, and why operators are blending hybrid models by default

[1] Table stakes, not an edge:

• Over 80% of high-growth SaaS use some form of PLG up from just 45% in 2019.

• Buyers expect instant access, not demos. If onboarding stalls or your app’s value isn’t obvious, you’re losing business before sales even get involved.

[2] PLG playbook basics:

• Self-serve onboarding, usage-based pricing, “aha” moments within minutes.

• 68% of SaaS buyers will abandon tools that gate value or delay access behind SDR calls.

• User forums and education are expected if support is hidden or slow, users churn before paying.

[2] Metrics That Actually Matter

• Activation rate: % of signups hitting first “aha” moment (top SaaS: 40% in first 7 days)

• Time to value: Sub-10 minutes is the benchmark for modern SaaS

• Trial-to-paid conversion: Median is 7%; the best PLG companies see 20%+

• Product Qualified Leads (PQLs): Usage, not just signups, track adoption and expansion signals

• Net dollar retention: 110-120% is world-class; anything below 105% = fixing churn and value

• Churn: Benchmark PLG leaders at <3%/month; leaky products are still losing 7%+/month

[3] PLG Pitfalls (and Where the Model Breaks)

• Leaky funnel: Massive signups, poor activation/conversion. “Try before you buy” easily becomes “try and never return.”

• Data blindspots: Without granular product analytics and cohort tracking, you don’t know where users are stalling (or leaving).

• Me-too risk: PLG workflows are easy to copy. If you’re not differentiating via brand, integrations, or community, you’re forgettable.

• Selling to the enterprise: Complex buyers, multi-person committees, and compliance reviews still require people.

Stat to remember:
Only 10% of new ARR in hybrid SaaS is pure PLG; nearly 60% of upsell and expansion revenue still needs sales, support, or CS touchpoints.

[4] Why Operators Are Going Hybrid

• PLG isn’t enough after $2 M ARR: It’s the new standard, but expansion and enterprise wins require high-touch.

• Hybrid = PLG for velocity + sales/support for ACV and trust.

• PQL triggers are the handoff point: when data signals buying readiness, route that account to the right human for close or expansion.

• Operators use PLG for scale and sales for depth.

[5] How to Win: The Hybrid Playbook

• Ruthlessly monitor activation and engagement, run funnel reviews weekly, not quarterly.

• Dial-in onboarding for “aha” in minutes.

• Build two bridges: (a) strong in-app PLG engine for high volume and (b) seamless human handoff for high-value accounts and expansion.

• Evolve as you scale; what worked as a pure PLG engine at $1M won’t keep you competitive at $5M+.

Bottom line:

PLG gets you in the SaaS game.

Hybrid models, granular metrics, and integrated sales/support keep you scaling.

The winners in 2025 won’t just “do PLG”, they’ll blend it with sales precision and operational discipline for defensible, compounding growth.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria