Post by account_disabled on Mar 4, 2024 9:52:49 GMT
Saturation/Competition According to Valterri Yilmaki , competition between companies has increased because “ Everyone wants to do it, so similar tools that execute a similar PLG strategy are present in every category. This can be seen as an advantage, but advertising, for example, is becoming increasingly harder " . 2. Lack of direct interaction with the customer At PLG, Valterri also noticed that human contact is often lacking. "When you do outbound sales, you have the opportunity to discuss with the customer and teach them how the product works, how it solves their problems and even help them understand that they have problems that should be solved. _ But when you do PLG, the product has to be so good that you don't have to include human resources to teach customers ."
Supporting free users can be expensive Michael Chen , head of growth at Notta , knows this well. “ Support and infrastructure costs are incurred up front for users who may never convert. Managing these costs requires discipline .” Parker Gilbert , CEO Canada Phone Number of Numeric , echoes Michael's experience: " Maintaining and upgrading the free tier requires considerable resources. Additionally, onboarding new users, who may or may not convert to paid plans, requires a careful balance of attention and investment ." Remember Dan's fourth rule for adopting the freemium PLG model? "Is the cost of supporting free users negligible?". If not, perhaps it's time to narrow your strategy. 4. Slow growth Draven McConville , CEO of Klipboard, knows this problem well. “One of the main problems is that you have to keep working on it (PLG) for a long time.
PLG requires patience and long-term investment, while standard sales-focused models tend to have rapid effects. _ Making a product that people want to use and encouraging natural growth through guided use of the product is a slow process that may not pay off right away ." According to Philippe Lehoux , CEO of Missive , it is important to recognize and prepare for times of growth. "... It may take a long time to find a solution that adds value to the customer. We at Missive were willing to experiment for a long time, regardless of whether we were successful or not. 5. Managing pricing could be a big headache. Unlike traditional upfront pricing, PLG requires an understanding of customers' usage patterns and their willingness to pay over time. Gathering this data takes time, and Notta 's Michael Chen agrees: “ It takes time to figure out what the sweet spot is to introduce payment and tiering.
Supporting free users can be expensive Michael Chen , head of growth at Notta , knows this well. “ Support and infrastructure costs are incurred up front for users who may never convert. Managing these costs requires discipline .” Parker Gilbert , CEO Canada Phone Number of Numeric , echoes Michael's experience: " Maintaining and upgrading the free tier requires considerable resources. Additionally, onboarding new users, who may or may not convert to paid plans, requires a careful balance of attention and investment ." Remember Dan's fourth rule for adopting the freemium PLG model? "Is the cost of supporting free users negligible?". If not, perhaps it's time to narrow your strategy. 4. Slow growth Draven McConville , CEO of Klipboard, knows this problem well. “One of the main problems is that you have to keep working on it (PLG) for a long time.
PLG requires patience and long-term investment, while standard sales-focused models tend to have rapid effects. _ Making a product that people want to use and encouraging natural growth through guided use of the product is a slow process that may not pay off right away ." According to Philippe Lehoux , CEO of Missive , it is important to recognize and prepare for times of growth. "... It may take a long time to find a solution that adds value to the customer. We at Missive were willing to experiment for a long time, regardless of whether we were successful or not. 5. Managing pricing could be a big headache. Unlike traditional upfront pricing, PLG requires an understanding of customers' usage patterns and their willingness to pay over time. Gathering this data takes time, and Notta 's Michael Chen agrees: “ It takes time to figure out what the sweet spot is to introduce payment and tiering.