The 4 SaaS Growth Models: Analyzing 5 Industry Leaders

Today companies usually have a mix of a few growth models to stay defensible and competitive.

Product-Led Growth (PLG) and Sales-Led Growth (SLG) models have become pivotal in capturing diverse market segments, from startups to enterprises.

Lately, hybrid models like Product-Led Sales-Assisted (PLS) and Sales-Led Product-Assisted are gaining popularity, blending the best of both worlds.

Let’s explore how five leading companies—Amplitude, Calendly, Figma, Slack, and Grammarly—have harnessed these models across all stages of the user journey to fuel their growth and success.

1️⃣ Amplitude

Amplitude began its journey over a decade ago as a pure PLG (Product-Led Growth) company. Then, they moved to the SLG Product-Assisted model going after large enterprise deals, but luckily kept their freemium offering up and running in the background.

Amplitude has thrived with its mid-market and enterprise plans, yet initially struggled to attract startups and SMBs, who sought more affordable, self-serve options.

Therefore, in 2023 they added a self-serve plan, the Plus plan, to better cater to startups and SMBs.

Now, Amplitude blends PLG and SLG models across all segments, from SMBs to enterprises. 

SMBs benefit from a straightforward PLG approach for acquisition and activation, while the mid-market combines PLG and SLG strategies for monetization. 

Enterprise customers receive a more sales-oriented strategy, with a focus on leveraging sales expertise for acquisition and monetization.

2️⃣ Calendly

Calendly adopted a PLG model from the start, revolutionizing scheduling with its user-friendly platform and freemium tier. This approach resonated with SMBs and individuals looking for efficient scheduling solutions. 

As Calendly expanded, it introduced product-led sales-assisted strategies to attract mid-market and enterprise clients, offering advanced features and integrations. 

This transition allowed Calendly to maintain its growth momentum across different segments, with SMBs enjoying self-serve options and larger clients receiving enhanced support through a sales-assisted model. 

Today, Calendly combines PLG and SLG approaches, ensuring a comprehensive offering that suits all customer needs.

3️⃣ Figma

Figma launched as a PLG-centric platform, capitalizing on the collaborative needs of designers and creative teams. 

Its freemium model encouraged widespread adoption among SMBs, while its enterprise offerings catered to more complex needs with a sales-led product-assisted approach. 

Over time, Figma successfully balanced its growth model by enhancing its product-led sales strategies, making it easier for users to upgrade to paid plans once they experienced the platform's collaborative value. 

For mid-market customers, Figma leverages a PLG approach for acquisition and activation, with product-led sales assistance enhancing monetization. 

Enterprise clients benefit from a sales-led strategy that ensures seamless integration and high-touch support for complex design workflows.

4️⃣ Slack

Slack's growth story is rooted in its PLG strategy, which leveraged viral user adoption to become a staple in workplace communication. 

The platform's intuitive interface and community-driven growth have made it popular among SMBs and mid-market companies, that engage with Slack through a self-serve model. 

For larger enterprises, Slack uses a sales-led product-assisted model to address more intricate needs, providing tailored support and integrations. 

This blend of PLG and SLG models allows Slack to efficiently cater to diverse customer segments, maintaining its position as a leader in team collaboration tools.

5️⃣ Grammarly

Grammarly's initial focus was on PLG, offering a freemium model that appealed to individual users and educational institutions. 

The tool's ability to improve writing quickly gained traction, but to capture larger markets, Grammarly implemented a sales-led growth model. 

This approach allowed them to provide specialized features and support for educational and enterprise clients. 

For SMBs and mid-market users, Grammarly continues to rely on a PLG approach for acquisition and activation, while enterprise clients get from a more hands-on sales-led strategy, ensuring their advanced needs are met with comprehensive support.

Wrap

Each of the 5 companies had successfully combined PLG and SLG models to navigate different stages of the customer journey and address varied market needs.

By leveraging both approaches, they have optimized their growth potential and tailored their strategies to meet the unique demands of each customer segment.

These approaches provide the agility and scalability needed to capture diverse audiences, from startups to large enterprises, enabling companies to thrive and stay competitive in today’s market.