---
title: "What Is Product-Led Growth (PLG)? Definition | ONEGTMLAB"
description: "Product-led growth (PLG) is a go-to-market motion where the product itself drives signups, adoption and expansion. Learn how PLG works in B2B software."
canonical: https://www.onegtmlab.dev/glossary/product-led-growth
---

# What Is Product-Led Growth (PLG)? Definition | ONEGTMLAB

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GTM Glossary

# Product-Led Growth (PLG)

Product-led growth (PLG) is a go-to-market motion where the product itself, through free trials, freemium plans or self-serve signup, drives customer acquisition, adoption and expansion.

Also called: PLG, PLG motion

## Why it matters

In a PLG motion, users try the product before talking to sales. That lowers the cost of acquiring small customers and creates a stream of usage data: who signed up, which features they used, how many teammates they invited. Sales teams use those signals to find accounts ready for a paid or larger plan, an approach often called product-led sales.

PLG differs from a sales-led motion, where buyers usually see a demo and negotiate before using the product. Many B2B companies run both: self-serve for small teams and a sales team for larger accounts. PLG is measured by activation, conversion from free to paid, and expansion, not by meetings booked.

## Example

A project management tool offers a free plan for up to five users. When three people from the same company sign up and one invites a dozen colleagues in a week, the system flags the account. An account executive then contacts the team lead to offer a company-wide plan with admin controls and single sign-on.

## Related terms

-   [Go-to-Market (GTM)](/glossary/go-to-market)
-   [Intent Data](/glossary/intent-data)
-   [Buying Signals](/glossary/buying-signals)
-   [Lead Scoring](/glossary/lead-scoring)
-   [Annual Recurring Revenue (ARR)](/glossary/annual-recurring-revenue)

## Related service

[GTM Engineering Signal-led outbound systems that enrich, score, sequence and sync to your CRM.](/ai-gtm-engineering)

## Related playbook

-   [Intent Data Playbook Score fit and timing separately, act on stacked signals, and read every signal by meaning.](/growth-playbooks/intent-data)

[← All GTM terms, A to Z](/glossary)

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