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2. A significantly lower CAC Free software also builds a moat around your business in three powerful ways: Faster sales cycles: By having your prospects onboard themselves, you can significantly reduce your prospect’s time-to-value and sales cycle. Once people experience the value in your product, the next logical thing to do is upgrade. The quicker your users can accomplish a key outcome in your product, the quicker you can convert your free users into paying customers. High revenue-per-employee (RPE): Software was always built to scale well, but with a product-led approach, you’re able to do more with fewer people on your team. Less hand-holding means higher profit margins per customer. Just take a look at Ahrefs in 2019. They have a $40 million ARR business with 40 employees. Better user experience: Since your product is built for people to onboard themselves, people can experience meaningful value in your product without any hand-holding.
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Wes Bush (Product-Led Growth: How to Build a Product That Sells Itself (ProductLed Library Book 1))