PLG in HubSpot: Proven Framework to Convert Free Users into Paying SaaS Customers

Lifecycle stages should stay clean and universal. Don’t add “PQL” as a lifecycle stage.

Here’s the SaaS lifecycle we recommend:

• Subscriber: Signed up for content.
• Lead: Added manually or signed up.
• MQL: ICP fit with marketing engagement.
• SQL: Handed to sales.
• Opportunity: A deal exists.
• Customer: Closed won.
• Evangelist: Refers others.
• Other: Doesn’t fit.

👉 Instead of overloading lifecycle, use PLG properties and a PLG pipeline to track product activity.

Two layers matter in PLG:

• PQL (Product Qualified Lead): A contact-level property (boolean or dropdown). Example: PQL = Yes when a free user hits a trigger like 3 logins in 7 days, invited teammates, or hit usage limit.
• PQA (Product Qualified Account): A company-level property. Example: PQA = Yes when 5+ users from the same company are activated.

This way:

• Lifecycle stays clean.
• Properties track product signals.
• Sales sees when a company is ready for outreach.

Revenue closes at the company level, but product signals often start at the user level.

• Contacts: Track individual usage, upgrades, downgrades.
• Companies: Aggregate usage. Example: “If 5+ users are Activated, set Company PQA = Yes and notify sales.”

This ensures sales focuses on real demand, not noise from one-off sign-ups.

Not all upgrades are equal:

• Self-serve upgrades: Auto-sync from your product into HubSpot. Create a deal with Deal Source = Product.
• Sales-assisted upgrades: Rep creates the deal with Deal Source = Sales.

Enterprise upgrades are usually sales-driven, but tracking source cleanly gives you attribution for product vs sales.

Use a dedicated PLG pipeline (separate from sales) to track user journeys:

• Signed Up → User created an account.
• Activated → Engaged with key features.
• Upgraded → Paid user.
• Downgraded → Dropped to free.
• Churned → Stopped using product.

👉 Sales pipeline only kicks in when a company is flagged as PQA and sales creates a deal.

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PLG churn happens quietly if you don’t track it.

• Small downgrades: Store in a multi-line property like Revenue History.
• Major downgrades or churn: Move to Downgraded or Churned stage in PLG pipeline.
• Churn reasons: Standardize reasons (competitor, budget, no longer needed).

This gives you clean Gross Revenue Retention (GRR) from PLG accounts.

You can define PQLs in two ways:

• Hard triggers: Clear usage events, like “Invited 3 teammates” or “Hit usage limit.”
• Scoring model: Points for activity (logins, invites, feature use).

Start with hard triggers for clarity. Add scoring once you have more data.

Make HubSpot do the heavy lifting:

• Trial expiry alerts: Notify sales if a trial hasn’t upgraded.
• Usage triggers: Auto-update PQL property when thresholds are met.
• Company aggregation: If multiple PQLs exist at one company, set PQA = Yes and notify sales.
• Downgrade alerts: Notify CS when usage drops.

Automation ensures PLG tracking isn’t dependent on reps updating fields, just as in the Investor-Ready SaaS Reporting Blueprint, where automated data flows replace manual updates for accuracy and scale.

Your dashboards should show:

• PQL → PQA conversion rate.
• Free → Paid upgrades.
• Churn rate for PLG users.
• Product vs sales-sourced revenue.
• Average active users per company.

This gives you visibility into whether growth is truly product-led or sales-led.

• Treating every free sign-up as SQL.
• Mixing PLG and sales deals in one pipeline.
• Skipping churn reasons.
• Ignoring product usage signals.

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PLG adds complexity, but HubSpot can handle it if you set it up right:

• Keep the lifecycle clean.
• Use PQL/PQA as properties, not lifecycle stages.
• Separate PLG and sales pipelines.
• Track revenue source: Product vs Sales.
• Automate triggers for upgrades, downgrades, and churn.

Do this, and HubSpot becomes your engine for turning free users into paying customers.

👉 Want help setting up PLG in HubSpot? [Book a free strategy call].