Founder-led PLG to product-led sales without blowing up CAC
PLG works because the product acquires, converts, and expands. Done well, that lifts efficiency and lowers CAC compared with heavy outbound models. Still, CAC accounting does not change for PLG. It must include fully loaded sales and marketing cost over a period divided by new customers, and that includes the founder’s time at a realistic market salary, plus tools and overhead. If you exclude your own time, your payback looks better than it is and breaks when you hire.
The current benchmark backdrop
Private SaaS has settled into efficient growth mode, with ARR growth around 19 percent and net revenue retention about 101 percent in 2024 data cuts. In this environment, investors and operators keep using CAC payback as the primary efficiency lens.
OpenView and Paddle’s recent views show how payback stretches with scale. Sub-$1M ARR companies report a median near 8 months while $50M+ cohorts report near 22 months. The takeaway is simple. Expect longer payback as motions get more complex, so build your plan around your scale stage.
OpenView also reframes “good” by tying acceptable payback to NDR. Under 100 percent NDR, target under 12 months. Between 100 and 120 percent, aim for 12 to 18 months. If your NDR is 150 percent or higher and cash is strong, a longer payback can be rational. Match the window to expansion dynamics, not a one-size target.
PLG still earns its reputation for lower CAC because the product is the primary channel, not a large headcount of quota carriers, but it is a trade, not a free lunch. You invest in activation, onboarding, lifecycle messaging, data, and in-product monetization. Those costs belong in CAC.
Where founder-led PLG breaks during the handoff
Cost structure change. Moving to sales-assist or product-led sales adds comp plans, enablement, quota coverage, and process overhead. Treat it like a new motion and model the fully loaded unit cost.
Conversion mix shift. Founders convert on context and credibility. Reps need clear PQL definitions, in-product intent, and tight assist triggers to keep win rates from dropping.
Time accounting. If you never booked your time into CAC, your payback inflates. When reps replace you, the math “gets worse” only because it becomes real. Fix that now by pricing your time in the model.
The operating playbook
• Measure CAC correctly. Use the standard formula and include salaries, benefits, tools, programs, and your own time at market rate. Build payback both gross and revenue-adjusted.
• Anchor targets to NDR. Choose a payback window that fits your expansion profile and cash position. Sub-12 months under 100 percent NDR, 12 to 18 months at 100 to 120 percent NDR, longer only with very high NDR and cash.
• Stand up product-led sales before you hire. Define PQL scoring from product usage, route high-intent users to sales-assist, and enable in-app scheduling to keep velocity without breaking self-serve.
• Stage-based expectations. Expect payback to lengthen with ARR bands. Plan ramp, quota, and pipeline coverage with that reality.
• Mind the market baseline. With growth and NRR at sane levels, efficiency determines outcomes. Your plan should show credible payback inside the ranges above, not theoretical savings from unpaid founder labor.
PLG wins on efficiency when the math is honest. Count your own time, match payback to retention, and build product-led sales before the first rep arrives.
