How to build a SaaS product that sells itself

In this episode of the Tekpon SaaS Podcast, host Cristian Dina sits down with Wes Bush, a prominent advocate for Product-Led Growth and the author of the “Product Led Playbook.” The discussion centers on building a SaaS product that can essentially sell itself through a focus on user experience and value.

Why PLG is here to stay

Wes begins by recommending that SaaS companies concentrate on a single business model, either sales-led or product-led, until they achieve around $10 million in revenue. At that point, they can consider integrating both models to target higher revenue milestones. This focused approach allows companies to master their chosen strategy before tackling the complexities of a hybrid model.

One of the compelling statistics Wes shares is that 97% of users prefer to try software before making a purchase. Despite this preference, only about half of SaaS companies are sales-led, with the remaining split between product-led and hybrid models. This indicates a significant gap and an opportunity for SaaS companies to improve their PLG strategies, especially given that only 5% of users report having a great experience with current product-led approaches.

For companies contemplating a transition to PLG, our guest advises having strong conviction and commitment to this path. The initial versions of a PLG strategy may not yield perfect results, and it often requires persistence and iteration. For new SaaS founders, he suggests starting with founder-led sales to deeply understand the problem being solved and to identify the ideal customer. This groundwork is crucial before diving into broader go-to-market strategies.

About Wes Bush

The speaker emphasizes the importance of specificity in targeting user groups and creating irresistible offers. Additionally, he touches upon the common confusion between freemium and free trial models, suggesting that the right choice depends on a deep understanding of user needs and desired outcomes. Moreover, gamifying the user experience can help users overcome challenges and achieve their goals more effortlessly.

The episode also sheds light on Wes Bush’s background in B2B SaaS. He initially focused on digital marketing and demand generation before pivoting towards PLG after encountering inefficiencies in traditional sales processes. His successful launch of a freemium model at Vidyard spurred his interest in PLG, leading him to found ProductLED.com.

In closing, Bush highlights the nuances of PLG and sales-led strategies, advising companies to keep them separate initially but suggesting integration at later stages once a solid PLG foundation is established. Cristian Dina expresses his appreciation for Bush’s insights and mentions plans to purchase the “Product Led Playbook” to support Wes Bush’s mission.

Overall, the episode offers a robust roadmap for SaaS companies looking to harness the power of PLG to drive growth and customer success.