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Zapier, Integromat vs Tray

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Zapier, Integromat vs Tray
By Aron Korenblit • Issue #12 • View online
Heyo!
Before we get into it, I’d love to know what YOU want to get from this newsletter by answering this 3 question Typeform. Thanks so much!
Without further ado

Last month, Tray.io an entreprise level workflow automation tool raised $50M at a $600M+ valuation.
Tray looks similar to Zapier and Integromat. Each offers a way to connect disjoint applications and automate workflows, send data from here to there, if this happens then do this (you get it). Zapier and Tray were even founded around the same time in 2012 (Integromat was launched in 2016 but development began in 2012 as part of integrators.sz, their parent company). Despite being the same age and in the same space, they’ve taken two very different go-to market approaches.
There are segments in the no-code space
Ask any no-coder what their favourite work automation tool is, they’ll say Zapier by a wide margin. Tray doesn’t even make the cut.
Look a little deeper and you’ll find that Integromat is actually the better option (in a lot of cases). It offers the exact same automations with more flexibility for much cheaper.
Ben Parker
@FinlaysonConnor @matthewpmunger @bentossell @aronkor @tomosman @kalenjordan @TrevorGoss I don't know if anyone loves Zapier more than me, but Integromat gives you SO much power and flexibility. So, if I was forced to choose one, it would probably be Integromat.
4:41 PM - 21 Nov 2019
Zapier and Integromat’s go-to markets are similar: offer a generous free tier and convert a portion of those into paid plans. Over time, get more users into the funnel and upsell them.
The real difference between the two (and why Zapier is winning) is that Zapier is easier to adopt for those starting to automate their work. And people tend to stick to the platform they know. See Mailchimp’s success despite many competitors.
Tray on the other hand is the go-to Zapier for larger companies. I know this through some sales groups I’m in (I used to sell stuff) and they rave about Tray. Its pricing is a reflection of its go to market: pricing plans begin at $600 a month with custom pricing being the most popular (according to them), not to mention the implementation costs at $250 an hour. No free option. To even see the product you have to sit through a scheduled demo.
This goes against everything that Zapier believes in. Here’s Wade Foster, Zapier’s CEO, talking about their freemium model (emphasis mine):
Having a way to deliver value before attempting to capture it is a powerful tool, especially for a company like ours that was essentially creating a new category. Being so new to the market, few people had ever heard of, never mind used, a product like ours. Our freemium plan was a way to help us educate our potential customer base. It removed any friction that would have kept prospects from getting into the product and playing around to see what they could do, and that was critical.
Zapier’s users – and the no-code community (and me)– are precisely the type of people to go in search of a tool to solve their problems. And if we can’t use it before we buy it, we’ll probably turn away. Users and buyers are one and the same. So it makes sense that we found and preferred Zapier. It’s why we’ve never heard of Tray.
Employees at larger companies, on the other hand, tend to operate within the confines of their existing toolset and capabilities. For them to discover the beauty of no-code, tools need to be brought to to them. That means salespeople pitching executives, customer success managers helping with implementation – and the huge up front costs associated to that whole sales motion. That’s where most of that $50M is going to.
That brings us to another difference with Zapier and why Tray’s position in the entreprise may go uncontested: Zapier has eschewed VC money since their seed round. From the same interview:
Instead [of raising money], we invested in our product in ways that would drive growth and revenue through increased acquisition and upselling additional services to existing customers.
I have huge respect to Zapier for sticking to its guns and bootstrapping their business post seed round. But I do wonder if this decision means it won’t attack a huge part of the market. That being said, I am happy that no-code is making its way into larger companies, a space that desperately needs it.
Best
Aron
PS Now that we’re done, I’d still love to know what YOU want to get from this newsletter by answering this 3 question Typeform.
PPS if anyone can give me test access to Tray… I’d love to play around with it :)
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