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PLG and SLG aren't philosophies — they're acquisition and monetization architectures with different cost structures, hiring profiles, and feedback loops. Choosing the wrong one for your market means you'll either underinvest in the product or spend on a sales motion users never asked for. Understanding the mechanics helps you pick the right model or design a hybrid deliberately.
Compare the unit economics and time-to-value of PLG vs. SLG for the same product at $50 ARPU.
const plg = {
cac: 30, // mostly product + content
timeToValue: "< 5 min", // user self-serves
salesCycle: "0 days",
avgContractValue: 600, // annual, low ACV
scalesWithHeadcount: false,
};
const slg = {
cac: 800, // AE salary amortized
timeToValue: "2-4 weeks", // demo + scoping + procurement
salesCycle: "45 days",
avgContractValue: 25000, // enterprise ACV
scalesWithHeadcount: true,
};
console.log("PLG payback (months):", Math.ceil(plg.cac / (600 / 12))); // 1
console.log("SLG payback (months):", Math.ceil(slg.cac / (25000 / 12))); // 1
console.log("PLG scales without headcount:", !plg.scalesWithHeadcount);