Jason M. Lemkin explains why early SaaS customers buy trust, not product. A CircleCI prospect asked directly: "Can we trust you?" Product-led growth failed because the market saw SaaS as risky and needed reassurance the vendor would survive.
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I think at least in our early days, what I discovered was that people weren't buying a product so much as they were buying a belief that the company would help them. So I remember I went to an early sales call at CircleCI, who was actually friends with us, and they asked me a couple questions, I answered, the CTO also answered. They're like, "Oh, we just wanted to know that we could trust you." You know, so a lot of sales is trust. So the reason why PLG didn't work for us very much in the early days, as we realized that we were a new category. Uh, SaaS was still a little risky, and people really needed to feel like they could trust us.