
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
Based on the insights from Price to Scale, PLG (product-led growth) companies don’t necessarily have to set dramatically lower prices compared to sales-led companies. Rather, the key difference lies in how the price is structured and the user acquisition strategy:
• For PLG startups, pricing tends to be crafted to minimize friction. The goal is to offer lower-cost tiers or a freemium model that allows users to self-serve, thereby fostering rapid adoption. This approach is designed to make it as easy as possible for a high volume of users to get started without the delays or hesitations that can occur with more complex, sales-led pricing.
• At the same time, many PLG companies—think of examples like Slack or Yammer—aim for similar absolute price points as their sales-led counterparts. They rely on volume and network effects (B2B virality) to generate revenue. The strategy is not simply “lower price” but rather “right-priced for a frictionless self-service experience” that scales with usage and additional needs over time.
In practical terms, if you’re benchmarking for a self-serve model, consider:
In summary, while PLG-oriented startups do design their pricing to reduce user friction (often resulting in lower entry points), they frequently land in similar price ranges to sales-led models. The difference lies in the approach: PLG leverages self-service and higher volume to achieve scale, rather than relying solely on higher margins per sale. For a more detailed analysis, you might consult the sections on tiered pricing and market share strategies in Price to Scale.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.