7.1 GTM Models
Part of Chapter 7: Sales Motion & Revenue Capture in the Master Go-To-Market (GTM) & Revenue Architecture Index.
The choice of sales motion defines how a product is distributed, how revenue is captured, and how internal teams are structured. B2B software companies typically operate across Product-Led Growth (PLG), Sales-Led Growth (SLG), or a Hybrid GTM motion combining both.
Product-Led Growth (PLG) vs. Sales-Led Growth (SLG)
| Dimension | Product-Led Growth (PLG) | Sales-Led Growth (SLG) | Hybrid Motion (PLG + SLG) |
|---|---|---|---|
| Primary Entry Point | Free trial, freemium tier, or self-serve signup. | Executive demo request, SDR outbound, or RFP process. | Self-serve onboarding with Product Qualified Lead (PQL) routing to sales. |
| Target Buyer Persona | End users, individual contributors, developer practitioners. | Economic buyers, C-level executives, department heads. | End-user champions driving usage + executive buyers approving enterprise expansion. |
| Sales Cycle Duration | Immediate to 14 days (self-serve credit card conversion). | 3 to 12 months (procurement, security, legal review). | 30 to 90 days (converting active user clusters into team/enterprise contracts). |
| Average Contract Value (ACV) | Low ($100 β $5,000 ARR per account). | High ($25,000 β $250,000+ ARR per contract). | Land small ($1kβ$5k), expand large ($20kβ$100k+ ARR). |
| Key Growth Mechanics | In-app onboarding, viral invite loops, dynamic paywalls, automated conversion triggers. | MEDDPICC qualification, value engineering, custom POCs, executive sponsor mapping. | Product telemetry tracking, usage-based triggers, PQL alerts, enterprise feature gating. |
Product Qualified Lead (PQL) Architecture in Hybrid Motions
In a hybrid motion, the product acts as the primary lead generation channel. A Product Qualified Lead (PQL) is an active individual or workspace that has reached defined product usage thresholds signaling high commercial intent.
When a single workspace adds > 5 active users within a 7-day period or invites users across multiple departments.
When an account executes core value actions > 50 times (e.g., running reports, exporting data, connecting third-party API integrations).
When an account hits 80% of free tier limits or repeatedly interacts with gated enterprise settings (e.g., SAML SSO, audit logs).