Infusionsoft Blog

Infusionsoft

Subscribe to Blog

Also, tell me more about Infusionsoft



HubSpot, Marketing Automation & Us

by Clate Mask

Post image for HubSpot, Marketing Automation & Us

There’s been speculation on what the funding of HubSpot means for Infusionsoft. This news is a good time to clarify where we sit in the marketing automation category and why we’re so excited to be leading the Small Business segment of the category.

This investment from Google Ventures, Sequoia and Salesforce.com into HubSpot is a fantastic thing for our industry. At Infusionsoft, we’re doing great and we’re happy for their success. But we’re focused on what we do. And that’s enabling small businesses to convert more leads, get repeat sales, save time and money while they grow their businesses. We love what we’re doing and I wouldn’t trade places with another CEO in the country right now.

How Infusionsoft is Different
I like the HubSpot guys a lot. Within the competitive landscape overview chart featured in their funding announcement earlier this week, I find it interesting they omitted Infusionsoft in the marketing automation category. That might be due to the fact their eyes are more on the medium-sized businesses (the “M” in the Small and Mid-sized Business [SMBs]) than on the “S” that we proudly serve at Infusionsoft. There’s some confusion here about “small business” vs. “SMB.” Truth is, there’s a big difference between the two.

At Infusionsoft we often chuckle at the software industry’s bantering of the term SMB because we’ve found that what they mean is “Smaller Medium-sized Businesses” instead of “Small and Mid-sized Businesses.” By that definition of SMB, HubSpot is for SMBs… and Infusionsoft is for Small Businesses. For us, it’s not a point of major concern as HubSpot targets a more medium-sized company and doesn’t offer the marketing automation technologies our small businesses customers are seeking. If they are invading someone’s space in the Marketing Automation category, it’s that of Marketo, Eloqua, Genius, Pardot, etc. Two players in particular, Eloqua and Marketo are proudly waving the Marketing Automation banner at the large business Enterprise level. We appreciate the work they’re doing to educate the market on the benefits of marketing automation. We’re doing the same thing down here at the small business level. Our companies are in for a lot of fun over the next few years. To put a fine point on the key differences:

  • We are definitely not for Mid-sized businesses. Infusionsoft is for small businesses with under 25 employees.
  • It’s interesting that some are casting HubSpot as a direct competitor to us. That’s just not true. We very rarely bump into HubSpot in the sales cycle. And when we do, the customer frequently buys both Infusionsoft and HubSpot. Our solutions are both referred to as “Marketing Automation” but they are actually very different.
  • Further, we’ve never considered HubSpot a Marketing Automation company, largely because, they’ve deliberately positioned themselves as something different and only recently began to offer the basic technologies that we would consider marketing automation.
  • The other point is that HubSpot’s pricing is much higher than ours. They serve a larger business than we serve. For example, at $250/mo. their customer can set up one lead nurture campaign.  One. When the customer pays $1,500/mo., they can set up 100 campaigns. When our customer pays $199/mo., they can set up unlimited campaigns.

Infusionsoft Leads the Small Business Marketing Automation Space
David Raab, the top analyst covering the marketing automation category points to Infusionsoft as the leader in marketing automation for small business. He recently commented on the news, pointing out that the marketing automation leader in customer size is missing. As I noted already here, I agree with this point. It seems odd Infusionsoft wouldn’t be included in a Marketing Automation category overview. Our customer numbers (6,000+ customers and 20,000+ subscribers) and $23 MM revenue run rate, in addition to our feature set and product positioning makes us one of the leaders in the category and the undisputed leader in marketing automation for small businesses. We’ll continue our dogged pursuit of making the incredible time-saving and revenue-enhancing benefits of marketing automation technologies easier to use and more accessible to the hundreds of thousands of small businesses that have stabilized and are eager to grow profitably.

Looking Ahead
I am thrilled with the progress we’ve made over the years and the leadership position we’ve established in Marketing Automation for Small Businesses. As I’ve noted, our customer numbers and revenue run rate make us the undisputed leader for small businesses. Unlike most Marketing Automation vendors, we are cash-flow positive. We have a complete sales and marketing suite that includes CRM, Email Marketing, Lead Nurture and eCommerce, with a smart automation engine at the core of it all.

It’s this complete solution that our customers love because it helps them convert more leads, get repeat business and automate repetitive tasks so they can save time and make more money.  That’s what small businesses want. That’s what we give them. It’s our passion. We love doing it, and we’ll keep on doing it, for years to come.

  • http://www.echopartners.com Howard Lothrop

    Clate,

    You are definitely correct when you say that HubSpot is not a direct competitor, and that HubSpot and InfusionSoft are both compatible and complimentary to each other.

    I am your poster boy for this. I have been on HubSpot for just over a year, but added InfusionSoft in late November for your additional functionality. I look at HubSpot as very good for lead generation, easy to manipulate CMS, and analytics, but the heavy lifting in marketing, automation, email, and ecommerce will be done in InfusionSoft.

    I liked the combo so much that I commissioned an integration between the two systems so that I could have the best of both worlds with automatic closed loop updates. I’m not completely where I want to be yet, but I’m getting closer all the time. It couldn’t happen for me without great support and service, which I get from both InfusionSoft and HubSpot.

    At InfusionSoft, Jeremiah Weise has been an outstanding ambassador and tutor for me. He definitely is a credit to your entire team. Keep up the good work, and full steam ahead!

    Howard Lothrop

    • Clatem

      Thanks so much for the comment, Howard. I’m glad to see you’re integrating Infusionsoft and HubSpot. You’re right–we do give great support at Infusionsoft. We pride ourselves in that and we’re glad you’re feeling the benefit. And yes, Jeremiah is outstanding! Hope to see you at InfusionCon next week!

    • Tim

      Howard,

      I have been with Infusionsoft for about a year, and recently jumped on board with Hubspot. I have to agree they are very complementary. Who did you use for your integration? Shoot me an email through my website. I would like to get some more info and compare notes.

      Thanks,
      Tim Norris
      http://www.jimglo.com

  • http://twitter.com/Lumnari_GrowNow Lumnari

    Clate,

    Well said.

    Here are some of my observations about the nuances of your two businesses and value propositions…

    1. HubSpot is really centered around “inbound marketing.” Part of their philosophy, and its a good one in my opinion, is spreading unique and educational content across the internet, getting picked up by crawlers and in social media conversations, and driving interested prospects back into the sales funnel. I’d compare this to a fisherman casting a net into the ocean and capturing those fish that are in the right spot at the right time. Nothing wrong with the approach. It can work very well.

    2. We’re InfusionSoft users at Lumnari, and see your product as a way to take a sales process from chaos to organization and efficiency, from inconsistency to predictability. Efficiency is beautiful for your target market for a couple reasons: 1. Saves a business owner time, energy, and resources so they can focus on what they’re good at, 2. Allows the business to manage more clients/customers and scale faster, 3. supports tremendous revenue growth. Your platform acts at the foundation for a sales and marketing process and catalyst to drive additional revenue and increase customer lifetime value.

    Keep up the great work and we’ll see you at InfusionCon.

    Ryan Mettee
    VP Business Development
    Lumnari.com

    • Clatem

      Great points, Ryan. I think you’ve summed up the differences nicely. Both are very useful. But the benefits delivered by each are very different. See you at InfusionCon! I can’t wait. Just 5 more days. It’s going to be a blast.

    • Clatem

      Great points, Ryan. I think you’ve summed up the differences nicely. Both are very useful. But the benefits delivered by each are very different. See you at InfusionCon! I can’t wait. Just 5 more days. It’s going to be a blast.

  • Anonymous

    I have wondered the difference and to me Infusion does many things that HubSpot does not. I think Infusion makes setting up a nurture campaign and closing the sale easy, on the other hand, HubSpot seems to be very precise in driving traffic in. So now as I look at it the two may be very compatible.

Previous post:

Next post: