how-does-doximity-make-money

How does Doximity make money?

  • Doximity is an online networking platform for medical professionals that was founded in 2010 by Nate Gross, Jeff Tangney, and Shari Buck. Tangney got the idea for Doximity after discovering that communication with patients, administrators, recruiters, and other doctors in the healthcare industry was slow and antiquated.
  • Doximity’s primary source of revenue is the subscription fee it charges brands that want to advertise to its vast healthcare professional audience. These are mostly hospitals and pharmaceutical companies.
  • Doximity also makes money from its healthcare recruitment platform and telehealth solution, which was to some extent developed in response to the COVID-19 pandemic.

Background

Doximity is an online networking platform for medical professionals that was founded in 2010 by Nate Gross, Jeff Tangney, and Shari Buck.

The story of Doximity started in the late 1990s when Tangney was living in New York with colleague Richard Fiedotin.

At the time, the Palm Pilot had just hit the market, and the pair wanted to know whether they could create an app that would enable doctors to access critical information.

Tangney and Fiedotin then took the idea to Stanford University where they met another physician called Tom Lee.

The trio discovered a shared interest in the intersection of healthcare and tech, with the Epocrates app launched in 1998.

But due to the dot-com bubble burst and September 11 attacks, business confidence was low and the company was forced to lay off multiple staff.

After Fiedotin and Lee left the company, Tangney powered on alone for much of the 2000s.

His plans to take the company public were again thwarted by a financial crisis, this time the GFC. Finding that he was no longer enjoying his work, he left Epocrates in 2009.

Tangney’s work was not in vain, however. During his tenure at Epocrates, he spent years learning about the challenges doctors faced in their profession.

Above all, he realized that communication with patients, administrators, recruiters, and other doctors was a constant source of frustration.

Convinced that software was the answer to the antiquated health care industry, Tangney partnered with former Epocrates colleague Shari Buck and doctor turned entrepreneur Nate Gross.

Doximity was unveiled to the public in October 2010 as a private, mobile-centric social network for physicians.

Doximity now comprises around 1.8 million medical professionals in the United States, a number that represents over 80% of all physicians.

The company debuted on the NYSE in June 2021 and ended the week with a market cap of almost $10 billion.

Doximity revenue generation

Doximity operates under the subscription-based business model with various fees applicable to its marketing, telehealth, and recruitment services. Below is a brief look at each.

Marketing solutions

Most company revenue comes from marketing or advertising fees that Doximity charges to interested parties.

Most of these are pharmaceutical companies and hospitals that want to use the platform to market their brands to millions of healthcare professionals.

Ads appear in a user’s news feed in a similar way to those that appear on Facebook and can be targeted according to specialty, geography, hospital affiliation, patient volume, and payor mix, among other attributes.

Marketing solutions accounted for 80% of total revenue in the fiscal year 2021.

Recruitment solutions

Doximity also makes money by collecting a subscription fee from companies that are looking to hire medical professionals from its platform. This is an approach that is also favored by LinkedIn.

Doximity uses artificial intelligence and machine learning so that companies searching for talent can run extremely targeted campaigns across various medical specialties.

Prices for this service depend on the number of messages and job vacancies a company wants to incorporate.

Telehealth solutions

Telehealth solutions were also introduced in 2020, mostly in response to the pandemic and a need for doctors to consult remotely.

There are three choices here:

  1. Dialer Free – a free app for physicians, nurse practitioners, and physician assistants.
  2. Dialer Pro – for small practices and individual clinicians. Prices start at $19.99 per user per month.
  3. Enterprise – for larger practices, hospitals, and other healthcare systems. Pricing here depends on the size of the health system.

Connected Business Frameworks, Concepts And Tools

Blitzscaling Canvas

blitzscaling-business-model-innovation-canvas
The Blitzscaling business model canvas is a model based on the concept of Blitzscaling, which is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency and focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.

Business Analysis Framework

business-analysis
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.

Digital Marketing Circle

digital-marketing-channels
digital channel is a marketing channel, part of a distribution strategy, helping an organization to reach its potential customers via electronic means. There are several digital marketing channels, usually divided into organic and paid channels. Some organic channels are SEO, SMO, email marketing. And some paid channels comprise SEM, SMM, and display advertising.

North Star Metric

north-star-metric
A north star metric (NSM) is any metric a company focuses on to achieve growth. A north star metric is usually a key component of an effective growth hacking strategy, as it simplifies the whole strategy, making it simpler to execute at high speed. Usually, when picking up a North Start Metric, it’s critical to avoid vanity metrics (those who do not really impact the business) and instead find a metric that really matters for the business growth.

Virtuous Cycle

virtuous-cycle
The virtuous cycle is a positive loop or a set of positive loops that trigger a non-linear growth. Indeed, in the context of digital platforms, virtuous cycles – also defined as flywheel models – help companies capture more market shares by accelerating growth. The classic example is Amazon’s lower prices driving more consumers, driving more sellers, thus improving variety and convenience, thus accelerating growth.

Freemium Business Model

freemium-business-model
The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a business model. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.

Growth Matrix

growth-strategies
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).

Asymmetric Business Models

asymmetric-business-models
In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.

Attention Merchant Business Model

attention-business-models-compared
In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.

Marketplace Business Models

marketplace-business-models
A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.

Wholesale Business Model

wholesale-business-model
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.

Retail Business Model

retail-business-model
A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.

B2B2C

b2b2c
A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.

Crowdsourcing Business Model

crowdsourcing
The term “crowdsourcing” was first coined by Wired Magazine editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Though the practice has existed in some form or another for centuries, it rose to prominence when eCommerce, social media, and smartphone culture began to emerge. Crowdsourcing is the act of obtaining knowledge, goods, services, or opinions from a group of people. These people submit information via social media, smartphone apps, or dedicated crowdsourcing platforms.

Open-Core Business Model

open-core
While the term has been coined by Andrew Lampitt, open-core is an evolution of open-source. Where a core part of the software/platform is offered for free, while on top of it are built premium features or add-ons, which get monetized by the corporation who developed the software/platform. An example of the GitLab open core model, where the hosted service is free and open, while the software is closed.

Open Source vs. Freemium

open-source-business-model
Open source is licensed and usually developed and maintained by a community of independent developers. While the freemium is developed in-house. Thus the freemium give the company that developed it, full control over its distribution. In an open-source model, the for-profit company has to distribute its premium version per its open-source licensing model.

Freeterprise Business Model

freeterprise-business-model
A freeterprise is a combination of free and enterprise where free professional accounts are driven into the funnel through the free product. As the opportunity is identified the company assigns the free account to a salesperson within the organization (inside sales or fields sales) to convert that into a B2B/enterprise account.

Franchising Business Model

franchained-business-model
In a franchained business model (a short-term chain, long-term franchise) model, the company deliberately launched its operations by keeping tight ownership on the main assets, while those are established, thus choosing a chain model. Once operations are running and established, the company divests its ownership and opts instead for a franchising model.

Main Free Guides:

Scroll to Top
FourWeekMBA