Thread by @poyark

1/ I can’t stop thinking about what’s next for software 🔮

What worked in the 2000s to propel SFDC won’t be what works for building a company in the 2020s.

That's esp. true with the valuation crash 📉

Here are the 11 #PLG principles for building in this new era. (It's a 🧵)

2/ Build for the end user.

Software co's used to be laser-focused on buyers. End users were an afterthought, only getting access after the purchase.

End users are the new kingmakers. Provide real value for your end users, not just for executive buyers.

Inspo: @Calendly

3/ Build to be discovered.

Software used to be marketed and sold.

Now products are bought, not sold. And they’re discovered, not presented.

Ordinary folks seek out solutions to their everyday problems whether through Google, friends, or their communities.

Inspo: @zapier

4/ Build to meet your users where they work.

You used to go to software when you needed to do a specific task.

Now software lives in your context; it lives wherever you live rather than being a destination. Don’t force people to change their workflow.

Inspo: @JoinToucan

5/ Build for openness.

Software used to be a walled garden.

Now software can’t be a walled garden. Users will choose what they want and you need to play well with others.

API companies embody this fully. In a real sense, openness is their product.

Inspo: @contentful

6/ Build for flexibility.

In the past we considered too flexible customization a bug. High-paying customers could dictate what got built.

Today we give users the tools to customize the product for their exact needs. Be flexible, so your users can be creative.

Inspo: @airtable

7/ Build community as a competitive advantage.

In the past, software companies established their brand bona fides the old fashioned way: through marketing.

Now users are the brands. People respond to people, and look to folks they trust for advice.

Inspo: @webflow

8/ Deliver instant product value.

Remember when fast time-to-value meant that your product could be deployed in a matter of weeks or months? Expectations have changed.

Companies now win on the basis of speed. Today we have to deliver value (near) instantly.

Inspo: @HubSpot

9/ Deliver instant CX.

How long does it take to respond to a customer issue? If your competitor does it instantly, what does that do?

We have shorter attention spans, and less tolerance when vendors don’t live up. Users now expect help in the moment of need.

Inspo: @snyksec

10/ Monetize after you deliver value.

We’ve been trained to expect software companies to charge us anytime we want access.

But if you want to deliver instant value, you have to ungate access before asking folks to pay.

Inspo: @JumpCloud

11/ Monetize based on usage.

When we think of SaaS, we think of seat-based subscription pricing.

In this period of short attention spans, asking people to commit before using the product increases friction and slows down adoption. Users demand flexibility.

Inspo: @algolia

12/ Monetize beyond software.

Users expect a seamless workflow to do what they need to do.

If a product touches a financial transaction, why shouldn’t that transaction be embedded in the software itself?

Consider alt ways to monetize beyond software.

Inspo: @toastpos

13/ PLG leaders - those who follow 9+ of these principles - are out-growing their peers & building stronger businesses.

The data is clear: #PLG is the way to build a large and enduring software business.

Check out the report: openview.vc/3PnqbyC