Breaking Down the Growth (PLG) Work

With examples from Monday.com (not just a theory fluff)

Disclaimer: Any numbers mentioned in this write-up are made up or available in public sources; any strategy pieces in this write-up are based on outcomes of my deep thinking or publicly available frameworks. Enjoy!

There are two types of Growth (PLG) work:

1. Generate and capture demand through Growth Pillars.

2. Compound the growth output through Growth Loops.

→ Both types of work reinforce each other!

This means that:

1. PLG Work that focuses only on Growth Pillars and ignores Growth Loops is just fancy Funnel Work.

2. PLG Work that ignores Growth Pillars and focuses only on Growth Loops means leaving money on the table by not compounding growth efficiently.

To deliver on the real example promise. Let’s explore how Activation (= Growth Pillar) reinforces Monday.com's viral loop to drive a killer product-led acquisition.

Loops Rules! 😎

1. Every cycle, we run compounds at 40%.

2. And, we got an extra 6640 users on top of the initial 10000.

But still, where does Activation come into play? How does Activation reinforce Monday.com’s Viral Loop? 😕

The answer is simple. Optimizing Activation impacts one of the Loops conversion variables, ‘Projects Created per User.’

• The better ‘Activation’

• The more Projects are created per user

• The higher the loop cycle compound %

• The more new users, the Loop yields

By increasing Activation by an absolute 5%, we reinforced the Viral Loop.

1. Every cycle, we run compounds now at 46% (+6%).

2. We got an extra 8501 users (+1861) on top of the initial 10000.

Case in point! 🤣

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