Many companies are moving, or at least wish to move, towards a product-led growth approach, a business strategy in which the product itself is the driving force behind the growth of the business. However, it is important to determine when this is the appropriate solution.

Therefore, we should ask ourselves the following questions:

1️⃣ How easy is our product to understand and use, considering both its complexity and the effort required for onboarding?
2️⃣ What is the preferred method of purchasing for our customers (this is different to what you prefer)?
3️⃣ Does our current sales process focus on buyers or users?
4️⃣ What is the current sales velocity (how quickly deals move through your pipeline and generate revenue)?
5️⃣ Is our pricing strategy suitable for a product-led growth approach?

It is not rocket science: a product or service that is complex or hard to understand typically has a longer sales process. Additionally, a high price tag usually sells better with a sales-led strategy, and conversely, a lower price point typically sells better with a different approach.

Many thriving SaaS businesses utilize a combination of the two models. However, they usually begin with one growth model and subsequently incorporate the second model to drive additional sales.

As an early-stage startup, what’s the best strategy for growth? Should you start with one model, or go for a hybrid approach? What’s your opinion?

The most important thing to remember is that there should be no competition between the product and sales departments. Collaboration is key! When product and sales departments work as a team, they create a winning combination that propels the company to new heights of success.