Building a PLG Motion at a Sales-Led Company

In our Q1 2025 Chalk Talk session, Kevin Hamilton, Venture Partner at Tidemark and former CMO at Toast, shared valuable insights on implementing a Product-Led Growth (PLG) strategy within a traditional sales-led company. Drawing from his experience at Toast, where he helped grow ARR from $40M to $1.2B, Kevin discussed the process of testing into and proving out a PLG motion to complement an existing sales-led motion.
Key Takeaways:
- Why Toast Invested in PLG: The onset of COVID-19 forced Toast to rethink customer acquisition costs (CAC) and payback periods. PLG served as a channel to unlock new TAM and also improve the overall customer experience.
- A Structured Approach: Kevin outlined a three-step process for implementation:
- Define the Opportunity: Understand market segments and buyer behavior. At Toast, this meant initially focusing on smaller, more cost-sensitive restaurants who were more likely to buy a POS systems online.
- Test and Scale Demand: Validate PLG initiatives before full-scale implementation. Toast used “painted doors” to gauge demand before investing in new systems. They also rapidly iterated on pricing and packaging to unlock additional demand.
- Navigate Internal Tension: Minimize conflict with sales teams by aligning incentives, defining ideal customer profiles (ICPs), and introducing a “Sales Assist” motion.
- Define the Opportunity: Understand market segments and buyer behavior. At Toast, this meant initially focusing on smaller, more cost-sensitive restaurants who were more likely to buy a POS systems online.
- Results: Toast successfully increased new logo acquisition and accelerated upsell growth through PLG.
This session provided practical strategies for balancing PLG and sales-led approaches, especially for companies aiming to expand their customer base without compromising existing sales motions.
Missed the session? If you would like to sign up to be considered for participation in a future live session, email us at knowledge@tidemarkcap.com.
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