Let's talk about GROWTH.

Hi Reader.

In the initial days of your startup, the PRODUCT should be getting you all the growth you need.

That ORGANIC traction is how you validate if you are nearing product market fit or not.

​Remember. Don't do ADS.​

BUT, at some point, your product will mature.
You'll have to build a GROWTH strategy to keep going.

Or else, your startup might STALL.

Let's discuss GROWTH strategies (and how to chose the best one).

There are 3 "fashionable" growth strategies in the startup world today.

1.Product led growth: ​
​Your product is the STAR.
Growth happens as users discover, use, and fall in love with it.

2. Marketing led growth:​
This is all about brand building, and getting your product in front of as many eyes as possible.

3. Sales led growth:​
​Think robust sales team closing deals and expanding the customer base.

Let's dive in.

Product Led Growth: "BUILD it and they will come"

Dropbox, Zoom, Slack.

Your entire focus is on building a fantastic product that gets people to discover you and convert.

Your users then become ambassadors that bring other users.

To win with PLG, you need to showcase:

• Excellent user experience and seamless onboarding
• Hook tactics to get people to try your product (freemiums, reverse trials, etc.)
• Shareability and collaboration features to encourage growth

Marketing Led Growth: Brand EQUITY gets you to win

Hubspot, Ahrefs, Dollar Shave Club, L'Oreal.

You look at building brand equity, SCALE and reach.

You construct a perception of your brand within consumer minds that gets you to sell when the time to purchase comes.

To win with MLG, you need to:

• Focus on brand building
• Have extensive content strategies
• ​Build a multi-channel presence​

Sales Led Growth: Relationships RULE

Oracle, Amazon Web Services, Microsoft.

You have a rockstar team of sales that focus on building rapport and relationship and drive customer acquisition.

To win with SLG, you need to:

• Master sales meetings and presentations
• Have impeccable sales discipline
• Work on a long sales cycle that includes demos, trials and pilots.

How do these strategies measure up to each other?

Glad you asked. I built this handy table (just) for you.

Ok... So how do I CHOOSE?

Here's a few things you need to consider when evaluating a growth strategy.

PLG is better suited for B2B / B2C SaaS where direct engagement with users takes place.

MLG is better suited for crowded markets where it is difficult to have product differentiation, and / or need REACH for success.

SLG is better suited for service based companies with complex/lengthy sales cycles and high value deals.

To start, benchmark where you are on key criteria like product, audience, market, growth budget and time to revenue, and start.

And YES, you will evolve into a hybrid strategy as you scale.
But that's a topic for another newsletter.

Now onto $1M ARR,
Majd