Two weeks ago at HR Tech, I had an insightful conversation with an executive from one of the larger HR and Payroll organizations in our space. His perception of analyst firms, largely shaped by interactions with Forrester and Gartner, was that many operate on a “pay-for-play” model. This perception, while understandable, doesn’t reflect the reality of how most research firms—including 3Sixty Insights—function. As we delved deeper into the discussion, it became clear that this misconception is common among vendors. In this article, I want to break down the differences between major firms like Forrester and Gartner, other research firms, and influencers, to help clarify how the research industry operates.
Understanding Forrester and Gartner: Not Truly “Pay-for-Play”
Forrester and Gartner are often seen as the dominant players in the analyst space, especially with their widely known tools like the Gartner Magic Quadrant and Forrester Wave. These tools play a critical role in guiding vendor selection for many end-user organizations. However, there’s a nuanced difference between how these firms operate versus the perception vendors have.
To be included in a Forrester Wave or Gartner Magic Quadrant, vendors don’t have to pay. Inclusion is based on relevance in the market. But here’s where things get tricky: if a vendor wants to improve their positioning, they need to spend more time with analysts, which can only happen if they’re a paying client. This advisory relationship allows analysts to understand a vendor’s product, messaging, strategy, and customer success. While this isn’t outright “pay-for-play,” it can feel that way to vendors, given the significant time and investment required to build these relationships.
The Two Buckets of Research Firms
Beyond Forrester and Gartner, research firms can generally be grouped into two categories: strategy-focused firms and sales-and-marketing enablement firms. Both types bring value, but they serve different purposes within the vendor community.
- Strategy and Advisory Firms: These firms primarily offer advisory services to vendors, focusing on go-to-market strategies, competitive analysis, and product reviews, etc. While they may publish research content, it’s typically not the bulk of their business. Their strength lies in offering high-level guidance to senior executives within vendors, product management, and strategy teams.
- Sales and Marketing Enablement Firms: On the other side, firms like 3Sixty Insights focus heavily on enabling sales and marketing efforts through research content. We work closely with senior executives, but also engage marketing , product marketing, and other teams to help raise awareness, educate, and generate demand. Our research supports the sales funnel by educating the market on industry challenges, highlighting how specific technologies are solving problems, and profiling customer success stories.
At 3Sixty Insights, we do not charge vendors for general briefings and/or continuous updates by the vendor community. We believe that the more we know about a vendor’s approach to customer success, the more relevant our research becomes. This collaborative, knowledge-sharing approach benefits both vendors and end users, but we are not alone. As, most research firms tend to function in a very similar way.
The Role of Influencers: Quasi-Analysts
Another emerging player in the space is the influencer. Unlike traditional analysts, influencers often work solo, advising vendors and providing insights into the industry. Many influencers are highly knowledgeable professionals with deep expertise in their fields. While they don’t have the same publishing platforms as research firms, they share valuable content through vendor channels, blogs, or social media.
However, because influencers typically operate as one-person shops, they can only manage a limited number of projects at a time. This can limit their impact compared to larger research firms that have teams supporting their work. But don’t be mistaken—many influencers are just as insightful and experienced as analysts, particularly in their niche areas of expertise.
Conclusion: It’s Not About Pay-for-Play
The notion that most research firms operate on a pay-for-play model is simply not accurate. Yes, deeper relationships with firms like Forrester and Gartner may require financial investment, but this is more about building understanding than buying influence. Similarly, most firms, including 3Sixty Insights, do not charge for basic briefings and/or continuous updating by the vendor community. Our goal is to gather knowledge to produce relevant, impactful research for both vendors and end users.
As this industry evolves, it’s important to recognize the value each type of research firm and influencer brings. Whether your focus is on strategy, sales enablement, or thought leadership, there’s a place for every approach in today’s research landscape.