SC Moatti’s Post

Hi SC! Love your posts and this is one is interesting! The way I’ve kept Product vs Sales led straight in my head is considering factors related to the buying and adoption of the product. Wonder if you agree? Among others, I think about how self-service the product is, if one or only a few people must approve (or decide) to buy, if the price point is big enough to require multiple approvals, whether legal and/or security must review, how involved onboarding is for the customer, etc. So, for example, if a product is self-serve, an individual can buy for a relatively low price, getting started is easier (no big implementation or training is needed), it doesn’t need legal and security approval, etc. then it can be PLG. And so those variables determine how the organization will evolve to operate that kind of motion, more PLG vs Sales led. That then affects the culture and types of people who work there, which can make the shift hard, as you point out well. I also think Sales losing control when it goes PL causes friction — a power shift. Does this view make sense to you, and how do you think about it? And do you have an example of when a shift to sales led vs PLG might happen? I think the underlying offering would be the driver.

SC Moatti, it's interesting how VCs manage this transition in their portfolio companies. Seams like zugzwang: ~ I build a nuclear engine to get to Mars, and we have no revenue: good luck, my friend; come back when you have at least some revenue. ~ I build rockets' steel components and generated $3M in revenue within a month: good luck, my friend; come back when you're ready to change the world. And a bonus one: ~ I have a vision you can read in dozens of SciFi books, but I have a few million and a pretty good network that enabled a multibillion contract with the government even after I blew up millions with no sign of revenue: good luck, my friend; are you pre-IPO? The truth is - innovation kills sales. Almost no VCs are left who invest in completely new products. Even fewer can afford to support big visions with such a large risk. Entrepreneurs should be realistic when watching videos on social media...