Are you familiar with B2B PLG and PLS growth models?

Recently, I decided to complete product management courses to enhance my skills and Monosnap. 💡My goal is to test the hypothesis about B2B PLG, where a viral product with a PLG approach can generate a user funnel. - Compared to classic PLG, where the aim is to monetize PQLs (users who use your app) 🦄, my goal is to verify/validate leads/users and with their help, sell/upsell 'heavy products' or upgrades where CAC is sky-high. 🔍One of the sources where I got CAC info, which led me to find ChatGPT: [1] https://firstpagesage.com/seo-blog/marketing/average-cac-for-saas-businesses-by-industry-and-customer-type-fc/ Created visualization for it: [2] https://media.licdn.com/dms/image/D4E22AQFRdLvMgD6Vhw/feedshare-shrink_1280/0/1700154054279?e=1715817600&v=beta&t=_E51_m_0wzpEUylmN-VrLGH_vJsHPgbgE0ZRg6jE4pE 🗺 From my approximation with ChatGPT, I've gotten these average CAC values for certain markets: - Consumer (B2C/B2D): $141 - $355 - SMB (Small to Midsize Business): $274 - $1,450 - Middle Market: $1,406 - $4,903 - Enterprise: $2,190 - $14,772 - Heavy Enterprise: keep in mind from $15k+ to infinity. ⭐️If you're still with me, I'm glad and excited to have captured your attention and to guide you through my reflections: 🧠 about Enterprise-level companies and productivity/usability tools for B2C with an LTV lower than $100 🙀The Enterprise/Heavy enterprise market is daunting mostly because of the following: - Extended sales cycles - Staggering CAC - Stringent requirements and high barriers to entry - Each lost customer significantly impacts revenue -> The prospect of attracting clients with CAC $10k+ seems daunting, yet for large firms/clients, the stakes can be even higher. 💸On the other hand, the B2C/B2D market for a wider audience seems more accessible. You can enter easily, with a faster development cycle for deployment/release, but unfortunately, the level of competition dramatically increases. You're up against Open-Source projects, free apps with ads, super affordable options, and donation-supported platforms like Wikipedia: - It's really simple to attract and engage first customers - Low CAC - Opportunities for impulsive/immediate purchases - Regrettably, you face low LTV and high churn rates if the app is 'unrefined'. In the case of Monosnap, any minor glitch/bug/crash/lags can drive users straight to numerous competitors 🔍Still, there are examples of startups/companies that have mastered navigating through Open-Source to infiltrate Enterprise/Heavy enterprise levels, exploiting the low CAC hack within B2C/B2D markets and filling the company from the bottom. Success cases: - RedHat - MongoDB - Docker - GitLab - HashiCorp etc 🦄💡🚀 So, the concept is pretty straightforward; there are essential tools/services in B2B/Enterprise that few are willing to pay much for, and there's immense competition targeting broader markets (B2C/B2D, SMB). These often can't make it into corporations due to security regulations and complex sales cycles/specific communications with procurement teams. 🦄Here's where the GAP is; untapped niches for hybrid software/services intended for end-users from the B2C/B2D markets with CAC ranging from $0 to $200, and lower LTV. By elevating the quality/level of service/software to B2B/Enterprise standards, you can compete with free or cheaper, lower-quality alternatives and penetrate the CAC in Enterprise/Heavy Enterprise because companies begin to adopt your service from the bottom up. 💡The only puzzle is choosing the right mix for a broad audience that also suits corporate needs, but such services often suffer from poor quality/limited support and fail to meet large companies' internal requirements for security, ACLs, integrations with corporate SSO, etc. 🚀Welcome aboard ⚡️ I’m eager to think through this market with you and pinpoint a few segments. - I’ve identified one and am actively engaged in it – it's Monosnap. - Dev tools / productivity tools X corp SSO X corp cloud storage + security kit. I write posts/texts and invite you to dive into this market with me, to structure knowledge and contemplate others 🙏 #b2b, #plg, #pls, #growth