Go-to-Market Model Selection

Choose between developer-led, PLG, or direct sales based on buyer/user alignment

Bret Taylor
Inside the expert network training every frontier AI model

Go-to-Market Model Selection

"I think there's a small handful of go-to-market models that have been proven to work, and I think it's important to choose the right one for the product category you're going after." - Bret Taylor

What It Is

A framework for selecting the appropriate go-to-market strategy based on the fundamental dynamics of your market—specifically, who uses your product versus who buys it, and the decision-making latitude of your target user.

Many startups fail not because of product issues, but because they chose a go-to-market model that doesn't match their market dynamics. Each model has specific requirements, and choosing wrong means fighting the structure of your market.

The Three Models

1. Developer-Led

How it works: Appeal to individual engineers within companies who have autonomy to adopt tools, then expand from there.

Famous examples: Stripe, Twilio

Requirements:

  • Product is a platform or developer tool
  • Users (developers) have significant latitude to choose solutions
  • Technical evaluation can happen without procurement

Works well for:

  • Platform products
  • Startups selling to other startups
  • Infrastructure and tooling

Doesn't work for:

  • Line of business applications (marketing, HR, finance)
  • Products where the buyer isn't technical
  • Markets where developers don't control purchasing

2. Product-Led Growth (PLG)

How it works: Users sign up from the website, get trials, and can often purchase with a credit card. Product drives adoption.

Requirements:

  • User = Buyer (same person)
  • Low friction to try and evaluate

Works well for:

  • Small business software (sole proprietors do everything)
  • Products like Shopify where the merchant is both user and buyer
  • Tools where individuals control their own purchasing

Doesn't work for:

  • Products where user ≠ buyer
  • Example: Expense reporting software—employees use it, but finance department buys it
  • "Having sign up and buy with your credit card doesn't make sense because the person using is not the person with the credit card"

3. Direct Sales

How it works: Dedicated sales team engages with enterprise buyers through traditional sales motions.

Lineage: Oracle → SAP, ServiceNow, Salesforce, Adobe

Requirements:

  • Large enough deal sizes to support sales motion
  • Complex purchasing decisions
  • Buyer and user may be different people

Works well for:

  • Enterprise software
  • Products sold to lines of business
  • Complex, multi-stakeholder decisions

Recent trend: Direct sales "had gone a little bit out of fashion" as PLG became popular, but is "coming back in fashion" especially in AI because:

  • Many AI opportunities have user ≠ buyer dynamics
  • Requires engaging with the actual decision maker

How to Apply It

Step 1: Map your buyer and user

Question Implications
Who uses the product day-to-day? This is your user
Who has budget authority? This is your buyer
Are they the same person? Determines viable models

Step 2: Assess user latitude

  • Can users adopt without procurement approval?
  • Do they have credit card authority?
  • Is technical evaluation possible without sales engagement?

Step 3: Match to model

Situation Recommended Model
Technical users with adoption latitude Developer-led
User = buyer, can self-serve PLG
User ≠ buyer, complex decisions Direct sales

Step 4: Be first-principles

Don't choose based on what's popular or what you're comfortable with:

  • "Don't choose a go-to-market motion without thinking through what is the process of purchasing this software"
  • If you're a technical founder uncomfortable with sales, that doesn't mean PLG is right for your market

Common Mistake

Founders choose go-to-market models based on comfort, not market fit:

"Candidly, I think a lot of companies should leverage direct sales more than they do. And even though because of the sometimes justified reputation of the quality of products of some of these direct sales companies, it had gotten a bad name."

Technical founders often avoid direct sales because it feels uncomfortable or "enterprise-y," but if your buyer isn't your user, PLG simply won't work.

Source

  • Guest: Bret Taylor
  • Episode: "Inside the expert network training every frontier AI model"
  • Key Discussion: (01:17:35) - Detailed breakdown of GTM models
  • YouTube: Watch on YouTube

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