How to Grow Faster with Close to $0 CAC
Posted: Thu Feb 06, 2025 4:41 am
The flywheel model offers startups a more holistic, customer-centric business model that is better suited to today’s market conditions.
With rising inflation, a wave of tech layoffs and a sharper focus on profitability, “growth at all costs” is no longer feasible, even for the best-funded tech startups.
Forward-thinking tech companies have shifted their mindset to drive customer acquisition costs CAC down to zero. While product-led growth is becoming a recognized strategy for rapid growth, how do you cut back on old sales initiatives and CAC spend to double down on PLG?
Tracking the user journey from the bottom up
Traditional sales moves in software require startups to think sri lanka mobile database through the B2B buying cycle: awareness, making a demo, and starting negotiations. These models are time-consuming, resource-intensive, and overly reliant on cash to accelerate growth. As more software companies compete for the attention of the same group of executive buyers, this traditional strategy has only become more expensive and ineffective over the years.
PLG companies should instead focus on the user journey. Users discover products when they experience pain or friction in their work. They land on their site and get started, see value preferably quickly, convert, and then expand their investment.
With rising inflation, a wave of tech layoffs and a sharper focus on profitability, “growth at all costs” is no longer feasible, even for the best-funded tech startups.
Forward-thinking tech companies have shifted their mindset to drive customer acquisition costs CAC down to zero. While product-led growth is becoming a recognized strategy for rapid growth, how do you cut back on old sales initiatives and CAC spend to double down on PLG?
Tracking the user journey from the bottom up
Traditional sales moves in software require startups to think sri lanka mobile database through the B2B buying cycle: awareness, making a demo, and starting negotiations. These models are time-consuming, resource-intensive, and overly reliant on cash to accelerate growth. As more software companies compete for the attention of the same group of executive buyers, this traditional strategy has only become more expensive and ineffective over the years.
PLG companies should instead focus on the user journey. Users discover products when they experience pain or friction in their work. They land on their site and get started, see value preferably quickly, convert, and then expand their investment.