TrendKite got acquired by Cision for $225M. This second-time founder thinks his next company is a much bigger opportunity.

Go-to-market model

• QuotaPath is a Freemium commission tracking tool that allows companies the option to try before they buy. It’s a Product-Led Growth (PLG) engine where the product drives acquisition and retention, effectively selling itself. PLG is on the rise as B2B companies recognize that it’s a more efficient and scalable business model.
• TrendKite (prior to the acquisition by Cision) was a leading sales-led organization that nailed sales methodology and repeatability (this team was led by AJ). Its high performing sales team paved the way to $25 million ARR in only 4 years time. But with a sales cycle of cold outreach and prospecting, demo, to close, it’s Customer Acquisition Costs (CAC) came with a high price tag.

Focus on metrics: flywheel vs. funnel

• QuotaPath has adopted a PLG flywheel framework with a dedicated focus on providing value to the end-user. With satisfied users comes increased advocacy, which in turn drives compounding growth of new user acquisition. It measures success by tracking metrics like decreased time-to-value, activation rate (the a-ha moment), adoption, retention, referrals, and Product Qualified Leads (PQLs).
• TrendKite primarily focused on customer acquisition and new business, measuring traditional funnel metrics like Marketing and Sales Qualified Leads (MQLs and SQLs), with a focus on account management and customer success. This model lacks superiority because funnels produce customers but don’t consider how those customers can help the business grow.

 

Path to monetization

• QuotaPath took 18+ months of planning and research, ensuring Product Market Fit, and understanding the industry and its personas. It hired its first customer success hire a little less than a year into the business.
• TrendKite went through the accelerator program with Dreamit Ventures. From ideation to building the product, to acquisition, it had three paying customers by the end of the program. It hired its first sales hire in 6 months time.

About QuotaPath

QuotaPath empowers and aligns sales organizations. Teams across all industries use QuotaPath’s diverse set of features to measure performance and drive consistent ROI. As a product-led organization, QuotaPath is dedicated to building a beautiful and easy tool that simplifies commission calculation and quota attainment tracking. Founded in 2018, QuotaPath is co-headquartered in Philadelphia, PA and Austin, TX.