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20Growth: How to Master Product-Led-Growth, The Biggest Mistakes Startups Make When Scaling into Enterprise, How to Assess "Bets" in Growth; Which to Take and Which to Not with Gonto, Interim CMO @ Vercel

20 Growth · Harry Stebbings — Martin Gontovnikas (Gonto) · February 14, 2024 · Original

Most important take away

Exponential growth requires deliberate, time-boxed big bets paired with incremental experiments — not just data-driven A/B testing — and the winners apply qualitative customer interviews plus creativity to find non-obvious answers. When scaling from PLG to enterprise, never abandon the user experience that brought developers in: chasing enterprise checklists at the cost of product simplicity (New Relic vs. Datadog) is how once-dominant companies lose their market.

Summary

Actionable insights and tech/career patterns from the conversation:

Growth philosophy and method

  • Define growth as “applying the scientific method to KPIs.” Data tells you what happened, not what to do — creativity and qualitative customer interviews drive non-obvious wins.
  • Prioritize qualitative over quantitative in B2B. A/B testing is much harder in B2B (smaller sample sizes, group buying decisions); use it mostly as a guardrail to confirm a metric does not drop, not as the source of ideas.
  • Plan a portfolio of bets each quarter: roughly six small bets (e.g., button color), two medium bets (a single onboarding page), one big bet (rebuild onboarding). Small bets keep you hitting near-term goals while the big bet incubates.
  • Time-box big bets. If outbound to a vertical does not work in 1–2 months, do not just stop — interview the prospects to learn why (Gonto discovered “initiative” — e.g., a tech stack migration — mattered more than industry).

Building a culture that takes risks

  • Set a no-approval experiment budget (e.g., <$10K) so people can try framed, measurable ideas without bureaucracy.
  • Do not punish well-framed failures. Run post-mortems with qualitative user interviews and store the learnings in a searchable database — Gonto puts them in a Google Sheet with tags and built a custom GPT to query past learnings before launching new experiments.

PLG done well

  • Start a PLG company with 6–8 design partners before opening the floodgates — first impressions are very hard to recover from.
  • Common bad first impressions: blank dashboards with no sample data; forcing users into advanced features before they understand basics; pushing one use case when the user has another.
  • Differentiate onboarding by persona (e.g., junior devs want click-here tooltips; senior devs want a brief overview and to be left alone).
  • For horizontal products (Notion, Airtable), use templates and content as a signal — what users browse pre-signup tells you their use case so you can personalize the in-product experience.

Bottoms-up motion mechanics

  • Detect when users are blocked (e.g., clicking docs → returning to dashboard → idle 30 seconds, or cycling between two sections) and proactively unblock them — this earns the right to a sales conversation.
  • Staff “product advocates”: junior-but-technical hires (Apple Genius bar, Best Buy tech, CS bootcamp grads) who can talk to developers credibly. Pure SDRs reaching out to developers does not work.
  • Use feature-cluster analysis to design plans: cluster features by co-usage, map each cluster to a plan, and intentionally move one or two highly useful features into the next tier as the upgrade hook.

Anti-retention patterns

  • Look not only at the activation moment but at events that break activation. At Auth0, users who implemented MFA in week one churned; those who waited a month retained. Build a table of features × time-of-implementation and compare retained vs. churned cohorts.
  • Define retention as repeated use of the core value, not payment. Encourage personal-project usage — it carries the brand across job changes.
  • Hard paywalls before users experience value are obsolete; gate by usage/quota after activation instead.

Top-down done with bottoms-up

  • Do not treat enterprise as an on/off switch separate from PLG — run them together. Trigger outbound based on bottoms-up signals (e.g., a Coca-Cola dev signs up → outbound to Coca-Cola VPs of Engineering).
  • Use availability bias: run ads targeting the buyers (VPs, directors) so when the developer champion mentions you, the name already feels familiar.
  • Arm internal champions with a “how to convince your boss” kit: specific benefit-to-them messaging, ROI papers (Forrester TEI for enterprise; uniqueness/shipping-speed framing for startups), reference customers.
  • Buyers fundamentally want two things: do not get fired (checklists, Gartner/Forrester validation) and get promoted (try unique things). Sell to both.
  • Demos: enable champions to demo internally with pre-packaged artifacts. Bring enterprise architects (not just AEs/SEs) into sales calls — they can whiteboard architecture in the customer’s language.
  • Group expertise by use case, not industry.

The New Relic warning (biggest enterprise-scaling mistake)

  • When you start selling to enterprise, the sale becomes a 200-item checklist. Building features just to check boxes adds bloat, ruins developer experience, and kills the bottoms-up funnel that fed the enterprise pipeline in the first place. Add checklist features, but never sacrifice experience.

When expansion is real vs. wishful

  • If a small enterprise land has not expanded within a year, it likely never will. Expansion requires action: invite other business units to workshops, send dev rel to interview adjacent teams, recruit additional champions.

Organizational design

  • Push for a Chief Technology + Marketing Officer (CTMO) role pairing marketing and product (not sales and marketing) under one leader. Marketing makes promises; product must deliver them — keeping them aligned avoids over-promise/under-deliver churn.
  • Tactic: split growth into a marketing-growth team owning activated signups and a product-growth team owning retention/conversion. Co-own onboarding with mutual veto power so neither team unilaterally degrades the other’s metric.

Hiring (career advice)

  • Do not hire for growth before product-market fit — finding PMF is the founder’s job.
  • Hire for “hunger for glory” + creativity + persona empathy + competitiveness + scrappiness over big-logo resumes. Gonto’s biggest hiring mistakes: (1) early on, over-weighting resume prestige; (2) later, hiring too many people like himself.
  • Always hire at least one direct report you do not like — diverse opinions improve decisions.
  • Interview with abstract case studies, not structured ones. Judge candidates on the questions they ask and the process they follow, not the final answer.

Common growth mistakes

  • Vanity metrics: Auth0 spent ~$300K driving signups that never activated. Always tie KPIs to bottom-line outcomes.
  • Optimizing email open/click rates without measuring downstream retention. A holdout test (10% no emails vs. 90% emails) revealed the no-email group was 20% more retained — emails were confusing users into churn.
  • Starting growth too late after strong PMF revenue masks the need.

What is changing in growth (tech patterns)

  • The biggest shift is the rising importance of marketing-ops + engineering inside marketing: scraping LinkedIn/hiring pages to infer intent (e.g., tech-stack migrations), fine-tuned GPTs personalizing SDR emails, deep-fake CEO videos in outbound (HeyGen/Synthesia). As these tools commoditize, the edge will move to whatever still requires custom engineering.
  • Intent-based outbound from web signals (hiring pages, stack changes) is becoming the most prominent next-wave tactic.
  • A winning influencer pattern: instead of one paid promo video, sponsor 4–5 creators to use your product naturally while building something, with sponsorship disclosed only at the end. Feels organic, drives curiosity, converts better (Clerk case).

Career advice surfaced

  • Brave people are scared people who act anyway — accept that big risks are required for exponential outcomes.
  • For engineers entering marketing/growth: lean into your engineering mindset (experimentation, instrumentation) but invest in learning behavioral psychology and biases — decisions are emotional even when selling to developers.
  • Stay close to the user persona personally — when Gonto’s outbound failed, he DM’d prospects on LinkedIn/Twitter just to learn (no pitch), and that unlocked the strategy.

Chapter Summaries

  1. Gonto’s path into growth — Stumbled in via developer advocacy at Auth0; promoted to head of growth without marketing background, applied engineering mindset.
  2. Lessons from seven years at Auth0 — Psychology matters even selling to developers; exponential growth always requires big bets (e.g., redirecting half of marketing + a chunk of product purely to signups/activation to scale 40M→80M ARR).
  3. Risk-taking and culture — Brave = scared but acting; small experiment budgets, no-blame for well-framed failures, qualitative post-mortems stored in a searchable GPT-backed database.
  4. What growth actually is — Scientific method applied to KPIs; creativity + qualitative interviews beat pure data; A/B tests as guardrails, not idea sources.
  5. Bets framework — Mix of small/medium/big bets per quarter; time-box big bets and use qualitative research to debug (Auth0 outbound: discovered “initiative” beat “industry” as the targeting signal).
  6. Should growth be a separate team — Ideally embedded across functions, but at scale it usually has to be separated for innovation; big companies (Amazon/AWS) succeed by walling off small bet-making teams.
  7. When to hire for growth — Never before PMF. Start PLG with 6–8 design partners.
  8. PLG first impressions — Blank dashboards, pushing advanced features early, forcing wrong use cases. Personalize onboarding by persona.
  9. Horizontal products — Use templates as both an output and a signal to infer use case and personalize.
  10. Bottoms-up mechanics — Detect blocked users; staff product advocates (slightly technical, junior) over SDRs; feature-cluster analysis for plan design.
  11. Anti-retention patterns — Auth0 MFA timing example; build feature × time-of-implementation tables comparing retained vs. churned users.
  12. Retention definition — Core-value usage, not payment; encourage personal-project use; hard paywalls before value are dead.
  13. Top-down + bottoms-up combined — Use bottoms-up signals to trigger outbound; availability-bias ads; arm champions with persuasion kits.
  14. What enterprise buyers want — Don’t-get-fired + get-promoted; Gartner/Forrester as risk mitigation; specificity over buzzwords.
  15. Demos — Champion-led internal demos with pre-packaged apps; bring enterprise architects to whiteboard.
  16. SMB vs. enterprise — Most PLG companies end up 80–85% revenue from mid-market/enterprise; expansion requires deliberate effort or it never happens.
  17. Biggest enterprise-scaling mistake — New Relic story: chasing checklist features bloated the product, destroyed dev experience, killed the funnel.
  18. CTMO and marketing-product alignment — Pair marketing with product (not sales); co-own onboarding; healthy conflict produces better experiences.
  19. Hiring for growth — Hunger for glory + creativity + scrappiness over resume; abstract case studies; hire people unlike yourself.
  20. Biggest growth mistakes — $300K wasted on vanity signups; email open-rate optimization that hurt retention (holdout test revealed 20% retention gap).
  21. Quick fire — Rising importance of marketing-ops + engineering; intent-based outbound; deep-fake personalization; founders starting growth too late after PMF.
  22. Best recent tactic — Clerk’s multi-influencer “use the product naturally, disclose sponsorship at end” pattern.