How the best do it

How do the very best companies use pricing itself as the growth engine rather than a checkout screen?

The short answer

They pick a value metric that grows on its own as the customer succeeds, then price against it, so revenue expands without anyone selling anything. GitHub charges as teams add developers, Shopify takes a cut of what merchants sell, Intercom prices AI support per resolution. The common thread is that the customer never feels a price increase, only their own growth. Almost nobody does pure usage-based any more, and the current best practice is a hybrid: a predictable subscription floor so finance can budget, plus a consumption component so the ceiling moves. The failure mode to avoid is picking a metric that is easy for you to measure but meaningless to the customer, like API calls, since nobody can forecast their bill and the anxiety kills expansion.

Go deeper, your way

5 hand-picked resources, 1 India-specific, 5 link-checked. Pick how you want to dig in.

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✓ Link checked Freemium Intermediate

Why we picked it Poyar replaces the sales funnel with a five stage new user journey (discover, start, activate, convert, scale) and attaches benchmark ranges to each. It is how you find out which stage is actually broken.

Your guide to PLG benchmarks

From Growth Unhinged by Kyle Poyar 10 min read

Open growthunhinged.com

The same ground, at another level

How product-led growth reads from a different seat.

People also ask

What does product-led growth actually mean, and how is it different from just having a free trial? A free trial is a tactic. Product-led growth is a decision about who does the convincing. In a PLG business the product is the main way people find... Breaking into GTM 6 resources → We are about to launch. Should we go with freemium or a free trial? Start with a free trial unless you have a specific reason not to. The benchmark data is consistent: freemium brings in more signups but converts fa... Breaking into GTM 4 resources → How do I know whether my product can even work self-serve? Three things have to be true at once. A single person has to get real value on their own, without their IT team, their manager, or a data migration... Breaking into GTM 4 resources → I just joined a PLG company as my first GTM job. What do I actually do all day if the product sells itself? You spend your days on the parts of the journey the product cannot see. Someone has to figure out why 80 percent of signups never come back, write ... Breaking into GTM 4 resources → Our self-serve funnel converts at about 2 percent from signup to paid. Where do I even start looking? Do not touch the pricing page yet. Split the funnel into visit to signup, signup to activated, activated to paid, and look at which of the three is... Doing the work 5 resources → How do I decide what goes in the free tier and what sits behind the paywall? Free should contain everything a single person needs to succeed alone, and paid should start exactly where the value stops being personal and start... Doing the work 5 resources →

Also in Starting Up

The same ground, over in Grow & market, our Starting Up track.

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