Rethinking the PLG Funnel

The classic PLG funnel—signup, activate, convert—is outdated. It doesn’t capture the specific DNA of a PLG/PLS led company.

The flywheel model gives us a better structure: a loop of evaluation, activation, adoption, and expansion. But in most teams, it’s still just theory. It doesn’t tell you what to do when a lead is stuck in one stage, or how to operationalize movement between stages.

So we’ve reworked it—built from real GTM workflows—to help operators spot gaps, define exit criteria, and design plays for every stage.

This is the modern PLG flywheel you should be running on.

The Operator Map #

Use this to audit your current PLG motion. For each stage, ask: Are we treating users the right way, at the right time, with the right ownership?

The Modern PLG Flywheel #

1. Evaluate — Strangers #

At the Evaluate stage, users are just beginning to explore. They’re browsing your site anonymously, maybe intrigued by your marketing, maybe not ready to engage yet.

Goal: Surface interest and capture intent.

Playbook: Use tools like Clearbit Reveal or Albacross to de-anonymize traffic, run remarketing campaigns, and drive soft conversions.

Exit Criteria: Signup or form fill.

Ownership: Demand Gen / Marketing

2. Activate — Explorers #

New signups are Explorers. They’re cautiously excited but noncommittal, testing your product alongside others.

Goal: Drive fast Time-to-Value (TTV) and start firmographic enrichment.

Playbook: Welcome/onboarding flows, reactivation nudges for abandons, ICP enrichment.

Exit Criteria: Achieve PQL status (product-qualified based on usage + fit).

Ownership: Marketing

3. Adopt — Beginners #

Beginners understand your value proposition and have begun integrating it into their workflows, even if they’re still on free plans.

Goal: Deepen engagement and identify other key stakeholders.

Playbook: Scoring models based on engagement, stakeholder enrichment, routing high-scoring leads to reps.

Exit Criteria: Sustained product usage + second-order behaviors (invites, API calls).

Ownership: Sales Ops / Sales

4. Expand — Regulars #

Regulars are active users who are ripe for upsell or expansion.

Goal: Identify account growth opportunities based on product signals.

Playbook: Monitor key events (feature adoption, increased usage volume), trigger CSM outreach.

Exit Criteria: Expansion event (new seats, upgraded plans).

Ownership: CSM

5. Advocate — Champions #

Champions are your best users—advocating internally and externally.

Goal: Turn usage love into public love.

Playbook: NPS programs, CSM-led referral asks, review and testimonial campaigns.

Exit Criteria: Advocacy action (review, referral, case study).

Ownership: CSM

How to Build Systems for Each Stage #

Every stage requires:

• Clear triggers to move users forward.
• Playbooks tailored to behaviors, not just lifecycle stages.
• Ownership split cleanly across Marketing, Sales, and CS teams.

Metrics also need to evolve. It’s not just “activation rate” anymore. It’s about measuring stage progression—activation, adoption, expansion, and advocacy—in a continuous loop.

Why This Flywheel Outperforms Traditional Funnels #

Funnels end. Flywheels spin.

By designing around a flywheel, you:

• Capture longer, more complex user journeys.
• Build revenue systems that optimize for expansion and advocacy, not just acquisition.
• Create a full-funnel orchestration motion where product, sales, and marketing work off the same signals.

Final Take #

Modern PLG isn’t linear. It’s a continuous system of evaluation, activation, adoption, expansion, and advocacy.

GTM teams that use the framework above, turn a theoretical framework into an actionable way of identifying gaps in the prospect / customer journey, and create sub processes accordingly. For this reality isn’t just growing faster. They’re compounding their growth at every stage.

Key Takeaways #

• Classic PLG funnel (signup → activate → convert) is outdated: Doesn’t capture complex user journeys or tell you what to do when leads are stuck, how to move them between stages, or where gaps exist—purely theoretical, not operationalizable
• Modern PLG flywheel = 5 continuous stages with clear ownership: Evaluate (strangers → Marketing), Activate (explorers → Marketing), Adopt (beginners → Sales Ops/Sales), Expand (regulars → CSM), Advocate (champions → CSM)—each with goal, playbook, exit criteria
• Funnels end, flywheels spin—continuous loop compounds growth: Evaluate → Activate → Adopt → Expand → Advocate → back to Evaluate (referrals, advocacy)—captures longer journeys, optimizes for expansion/advocacy (not just acquisition), creates full-funnel orchestration where product/sales/marketing work off same signals
• Exit criteria define stage progression (not just time-based): Evaluate (signup/form fill), Activate (PQL status: usage + ICP fit), Adopt (sustained usage + second-order behaviors: invites, API calls), Expand (expansion event: new seats, upgraded plans), Advocate (advocacy action: review, referral, case study)
• Each stage requires clear triggers, tailored playbooks, metrics: Evaluate (de-anonymize traffic via Clearbit Reveal), Activate (welcome flows, TTV, enrichment), Adopt (scoring models, stakeholder enrichment, routing to reps), Expand (feature adoption triggers, CSM outreach), Advocate (NPS programs, referral asks, testimonials)—measure stage progression, not just “activation rate”

Frequently Asked Questions #

👉 Interested in learning more about PLG? Check out our PLG resources