C2 · Motions & channels · 38 terms

Motions
& Channels

Motion is a forced move, not a preference. ACV vs cost-to-serve determines it.

Motion is a forced move set by ACV vs cost-to-serve, not a strategic preference. PLG is the rational default below ~$2,000/month ACV when time-to-value is under 30 days. Sales-led is the forced choice above ~$15,000 ACV or when the buyer is C-suite. Hybrid covers the band between them. 73% of top-quartile SaaS companies use hybrid by Series B.
Cluster C2 Last updated 2026-06-18 38 terms · 4 categories

The motion inequality (thesis T5)

Motion is not chosen — it is revealed by the ACV vs cost-to-serve inequality. When ACV < cost-to-serve via a direct sales motion, PLG or a low-touch model is the only profitable option. When ACV is large enough to justify sales investment, the opportunity cost of not having a sales motion becomes the binding constraint.

ACV bandForced motionWhy
< $500/monthPLG or self-serveCAC from a sales team exceeds LTV at any reasonable churn rate
$500–$5,000/monthPLG + inside sales (hybrid)ACV supports light-touch sales; PLG drives pipeline quality
$5,000–$25,000/monthHybrid or field salesComplex buying committees require human coordination
> $25,000/monthEnterprise sales-ledProcurement, legal, and security reviews require dedicated AEs

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PLG is a loop, not a funnel (thesis T14)

Product-led growth compounds through a recursive loop: product usage generates word-of-mouth, which generates new signups, who use the product, which generates more word-of-mouth. But B2B virality never sustains k ≥ 1 — the loop converges, which is why PLG is a highly efficient acquisition channel, not perpetual motion. Retention is upstream of virality: k_effective = k_raw × R, so churn kills the loop before it starts.

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