6 types of product-led models
Blog post from LogRocket
Product-led growth models offer businesses a way to scale efficiently by allowing the product itself to drive customer acquisition and retention, reducing the need for extensive sales teams. The article outlines six distinct product-led models: opt-in free trial, opt-out free trial, usage-based free trial, freemium, new product, and sandbox, each with unique strategies for enabling potential customers to experience the product's value independently. These models are particularly effective for B2C products where direct customer interaction is challenging. Selecting the appropriate model depends on factors like the nature of the problems the product solves, the cost-to-serve, and the time-to-value. The freemium model suits products that address both beginner and advanced problems, while trials or sandbox experiences are better for products that solve only advanced issues. Choosing the right model is complex and context-dependent, but the decision tree provided can serve as a helpful starting point for evaluating the best approach for a specific business context.