#41 — Cold Take: PLG isn't right for most early-stage startups
February 27, 2025•2 min read

Our take: Product-Led Growth (PLG) is tempting for founders, but opening your product to the world too early can doom your startup's chances of finding product-market fit.
The big picture: While PLG has created success stories like Stripe and Vercel, most early-stage founders should focus on direct sales first to gather critical feedback and build meaningful customer relationships.
Not all users are created equal
Reality check: You don't want just any users—you need useful users who provide high-quality feedback to determine if your product and story have value.
- Frictionless signups lead to frictionless exits
- Early users who leave without providing feedback are a missed opportunity
- High-fidelity design partners who experience your pain point are worth more than random signups
By the numbers: The average reader spends just 26 seconds on an article, and people receive between 70-400 notifications daily—your early customers are just as busy and distracted.
Better alternatives to premature PLG
What's working: Instead of rushing into PLG, consider these founder-friendly alternatives:
- Product sandboxes: No auth, no setup—just let prospects explore your product
- Free POC trials: Enable all features for a limited time within a structured feedback process
- Direct outreach: Email potential customers directly for better feedback and faster cycles
The Atlassian reality check
The transformation: Atlassian, once the poster child for "no pushy enterprise sales," now prominently features enterprise sales on their website.
What happened: By 2020, enterprise sales became Atlassian's fastest-growing segment, despite their S-1 filing's emphasis on self-service and low-friction models.
The pattern: Even Stripe, the canonical PLG example, now prominently features enterprise sales and Gartner recognition on their website.
The bottom line
PLG isn't inherently bad, but timing is critical. Find your first few customers through direct sales, lock in your story, and only then consider opening up product access once you're confident you've built something valuable.
Think of it like: Training a puppy before taking it to the dog park. You need shots, socialization, and basic training before letting it loose—your product needs the same preparation.
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