PLG vs TCV
PLG (Product-Led Growth) and TCV (Total Contract Value) 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: PLG refers to product-led growth, while TCV refers to total contract value — they describe different things even when they show up in the same sentence.
PLG — Product-Led Growth
A go-to-market strategy where the product itself drives acquisition, conversion, and expansion — usually via free trials, freemium, or self-serve.
TCV — Total Contract Value
The total value of a customer contract over its entire term, including one-time and recurring fees.
When to use PLG
Reach for "PLG" when the conversation is specifically about product-led growth. A go-to-market strategy where the product itself drives acquisition, conversion, and expansion — usually via free trials, freemium, or self-serve.
When to use TCV
Reach for "TCV" when the conversation is specifically about total contract value. The total value of a customer contract over its entire term, including one-time and recurring fees.
FAQs
What is the difference between PLG and TCV?
PLG stands for Product-Led Growth — A go-to-market strategy where the product itself drives acquisition, conversion, and expansion — usually via free trials, freemium, or self-serve. TCV stands for Total Contract Value — The total value of a customer contract over its entire term, including one-time and recurring fees.
Are PLG and TCV the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. PLG = Product-Led Growth. TCV = Total Contract Value.
When should I use PLG vs TCV?
Use PLG when you're specifically referring to product-led growth. Use TCV when the topic is total contract value.