The 30/70 rule in a product-led growth business
Zeynep Serra Avan
2 replies
I've been using a powerful concept you probably know in any aspect of my life, from eating to communicating, for a while. The 30/70 rule. I believe it's also incredibly valuable for those of us striving to grow our product-led growth (PLG) businesses. This rule can help us strike the perfect balance between product development and marketing efforts, ultimately driving long-term success.
The push and pull of growth in PLG businesses
In PLG businesses, sustainable growth relies on maintaining a balance between the pull of an exceptional product and the push of sales and marketing strategies.
The 70% side: Product Development
Companies must allocate at most 70% of their resources to developing the best possible product, incorporating user feedback, and monitoring market trends.
The 30% side: Sales and Marketing Efforts
Companies should allocate at least 30% of their resources to activities like advertising campaigns, public relations, social media engagement, and other promotional strategies that raise awareness and generate demand for the product.
What do you think?
https://www.indiehackers.com/post/the-30-70-rule-in-a-product-led-growth-business-e6dcc1551e
Replies
Bren Kinfa 💎 SaaS Gems@brenkinfa
SaaS AI Tools
Great rule, Zeynep! I'm guessing though there are different periods of time when you'd switch this balance to something more like 80/20 or reverse, or 50/50, correct? All based on the scenario and current goal, right?
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@brenkinfa I appreciate your insightful comment, Bren! You've made a great point that the balance between product development and marketing efforts can be adjusted depending on a business's situation and goals. It might make sense for some companies to go for an 80/20 or even a 50/50 split at certain stages.
As a product person, though, I value building a top-notch product as the backbone of a thriving PLG business. That's why I usually prefer to focus more on product development, dedicating a larger portion of resources to it. This doesn't mean I downplay the importance of sales and marketing efforts. In my experience, an excellent product tends to draw in customers and amplify the impact of marketing campaigns, so I recommend the 30/70 rule as a general guideline.
Of course, every business has its own unique needs, and what works for one may not be ideal for another. It's essential for companies to assess their specific situations and tweak the balance accordingly to reach their goals.