ACV vs SLG
ACV (Annual Contract Value) and SLG (Sales-Led Growth) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: ACV refers to annual contract value, while SLG refers to sales-led growth — they describe different things even when they show up in the same sentence.
ACV — Annual Contract Value
The annualized value of a single customer's contract, excluding one-time fees. Used to size deals and segment customers.
SLG — Sales-Led Growth
A go-to-market strategy where outbound sales reps drive most new revenue. Common for high-ACV enterprise software.
When to use ACV
Reach for "ACV" when the conversation is specifically about annual contract value. The annualized value of a single customer's contract, excluding one-time fees. Used to size deals and segment customers.
When to use SLG
Reach for "SLG" when the conversation is specifically about sales-led growth. A go-to-market strategy where outbound sales reps drive most new revenue. Common for high-ACV enterprise software.
FAQs
What is the difference between ACV and SLG?
ACV stands for Annual Contract Value — The annualized value of a single customer's contract, excluding one-time fees. Used to size deals and segment customers. SLG stands for Sales-Led Growth — A go-to-market strategy where outbound sales reps drive most new revenue. Common for high-ACV enterprise software.
Are ACV and SLG the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. ACV = Annual Contract Value. SLG = Sales-Led Growth.
When should I use ACV vs SLG?
Use ACV when you're specifically referring to annual contract value. Use SLG when the topic is sales-led growth.