Run the Numbers

Why Romanticizing PLG is Dangerous


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This is going to make all the PLG fan boys & girls angry...Today we talk about why Romanticizing PLG is dangerous.With AI companies hitting $50M ARR overnight (amazing product, credit cards, and a golden retriever named Kevin), a dangerous myth is spreading:šŸ‘‰ ā€œYou don’t need a sales team. The product sells itself.ā€Wrong. That was the dream of PLG. Now it’s become the CFO’s favorite excuse to avoid hiring reps. But romanticizing PLG as a cost-saving silver bullet? That’s corporate delusion.Some inconvenient truths:1ļøāƒ£ You cap your upside. Big logos don’t swipe the corporate Amex for $2M+ contracts. They send you to procurement purgatory. Hope you packed a snack.2ļøāƒ£ Credit card fees quietly bleed your margins. At $10M ARR, you could be giving $270K to Stripe instead of hiring 4 support reps.3ļøāƒ£ You stop talking to customers. Self-serve is great until you realize your roadmap is built on "watching" your customers from afar, and not feedback.4ļøāƒ£ Even Slack hired salespeople. So did Atlassian. So does every PLG darling with a pulse and a 10-Q.5ļøāƒ£ That ā€œself-serve wedge into a $1B logoā€ slide? I’ve made that slide. I’ve been that guy. Truth is, it’s the law of large numbers—a narrative that is retroactively form fitted to the story you want to tell.PLG is a starting point. Not the whole playbook. If you want to scale past $25M ARR and sell to real enterprises, you need a sales team. You need relationships. You need to show up.Self-serve is a channel. Not an all encompassing strategy.PLG isn’t dead. But Santa PLG never existed.And if I had to bet, those founders and Kevin already hired a recruiter to staff up their CRO search.

Let’s dig in.



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Run the NumbersBy CJ Gustafson

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