Jun 13, 2024
Aspect | Product-Led | Sales-Led |
---|---|---|
Pros | - Focus on long-term product strategy and innovation. - Encourages innovation and quality. - Enhances customer experience through well-designed products. - Differentiates through superior product offerings. | - Helps to close deals quickly, ensuring immediate cash flow. - Direct feedback from customers influences product development. - Easier to demonstrate ROI to investors. - Adapts quickly to market changes and customer needs. - Strong immediate revenue generation. |
Cons | - Risk of running out of funding if not enough immediate sales. - Slower revenue growth initially. - Potential disconnect with market demands. - Longer time to market. - Higher upfront costs for development. | - Risk of creating a 'Frankenstein' product that tries to suit everyone but works for no one. - Can lead to short-term thinking and reactive development. - Potential for higher customer churn if product lacks focus. - Sales-driven roadmap may overlook innovative opportunities. |
Considerations | - Requires strong vision and patience. - Revolves around delivering value to the customer before purchasing - Needs clear communication of product value to the exec team. - Need to be comfortable saying "no" to sales opportunities. | - Requires strong sales team and customer relationship management. - Revolves around delivering value to the customer after purchasing - Balance between customisation and maintaining core product vision. - Important to define and stick to core product principles. - Align sales and product teams; foster collaborative culture. |