How PLG changes PM responsibilities
| Dimension | Sales-led growth | Product-led growth |
|---|
| Acquisition | Marketing generates leads for sales | Product has a freemium or trial that users self-discover |
| Activation | Sales demo and onboarding call | In-product onboarding, PM owns the activation funnel |
| Expansion | Sales manages expansion conversations | Product triggers upgrades at the right usage moment |
| PM success metric | Feature adoption rates | Activation rate, time-to-value, expansion MRR from product triggers |
The PLG metrics that matter most
TTV
Time-to-Value: minutes/hours to first meaningful outcome
PQL
Product Qualified Lead: user who has hit activation criteria
Time-to-Value (TTV): How long does it take a new user to achieve their first meaningful outcome? This is the single most important PLG metric. Every friction point in the activation flow extends TTV. Reducing TTV from 7 days to 1 day is a meaningful growth lever.
Activation rate: % of signups who reach the "aha moment", the point where they've experienced enough value to become sticky. Define the activation milestone concretely (not "engaged", specific behavior: created first X, invited a teammate, used feature Y).
Product Qualified Lead (PQL): A user who has hit specific product usage criteria that correlate with paid conversion. PQLs are a stronger sales signal than MQLs for PLG products. Define PQL criteria from conversion data, not intuition.
What to build first in a PLG motion
The PLG product roadmap prioritizes: (1) reducing friction in the signup and activation flow, (2) reducing time-to-first-value, (3) in-product upgrade prompts at the right usage moments, and (4) virality and collaboration features that create new acquisition loops. Feature completeness comes later, activation efficiency comes first.
