The 30/70 rule in a product-led growth business
Hey, Indie Hackers 👋 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?
Therefore, it's important to strike a balance between product development and promotion, rather than focusing too heavily on one at the expense of the other. Ultimately, the effectiveness of the 30/70 rule will depend on how well it aligns with the specific needs and goals of a given business.
Agree. The 30/70 rule can be a helpful guideline to ensure that both areas receive appropriate attention and resources. Still, it's essential to remember that every business is unique and has different needs and goals. I might need to collect more data from different founders, product people, sales teams, etc., to validate the general effectiveness of the idea.