The Product-Led Growth Trap: Why Your PLG Strategy Might Be Silently Killing Your Growth
I've watched many startups fall into the PLG Trap pursuing product-led growth at all costs while their CAC silently skyrockets, conversion rates plummet, and revenue goals evaporate.
Here's the hard truth: PLG isn't failing you. You're failing PLG.
The Trap Happens In Three Phases:
The False Start
You build self-serve features because "that's what PLG means"
You optimize for trials and signups instead of activation
Your product team celebrates vanity metrics while revenue stagnates
The Spiral
Customer acquisition costs rise as you target everyone
Your sales team struggles with low-intent leads
Product complexity increases while conversion decreases
Engineering resources get stretched thin maintaining features nobody uses
The Wake-Up Call
You realize you're burning cash on user acquisition
Your CAC:LTV ratio is underwater
Enterprise customers demand high-touch sales anyway
Here's What Nobody Tells You
True PLG isn't about eliminating sales, it's about creating a magnetic product experience that makes sales conversations inevitable.
How to Escape the Trap:
Start with your Ideal Customer Profile (ICP), not your product
Design activation flows that qualify real prospects early
Build features that drive expansion revenue, not just adoption
Create natural escalation points to sales conversations
Your PLG strategy shouldn't feel like pushing a boulder uphill. If it does, let's talk.