- How does GoodRx make money if it is free to use?
- Get the lowdown on its business model and revenue generation stream.
- Review GoodRx’s competitors and how the company plans to grow in the future.
GoodRx is a telemedicine platform that aims to provide the most convenient and affordable healthcare possible to its customers regardless of their insurance or income status. The platform facilitates communication between patients and health providers.
You may be wondering how GoodRx makes money if they don’t charge a fee. Find out how it works below.
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What does GoodRx do?
The original aim of GoodRx was to negotiate lower prescription drug costs by partnering with major prescription drug companies. It later expanded its product portfolio with GoodRx Care, the online portal of GoodRx.
GoodRx currently offers a wide range of healthcare services, including prescription savings, online consultations with doctors, medical examinations, and health information.
GoodRxhas partnered with over 75,000 pharmacies across the country allows you to save a significant amount of money on prescriptions with their coupon codes. It to help you save up to 80% on prescriptions. The prices of the drugs vary depending on the pharmacy.
Normally, new patients are required to wait more than 3 weeks for a doctor’s appointment. With GoodRx, you can have same-day consultation sessions with doctors.
With GoodRx, you don’t have to spend hundreds of dollars on blood tests. The platform allows you to find tests at a service centre located in your neighborhood. You can also find at-home lab tests on the platform.
GoodRx Gold is subscription-based membership of GoodRx that gives you access to all the above-mentioned services. With GoodRx Gold membership, you can enjoy better healthcare, free prescription deliveries, and prescription medication coupons.
How does GoodRx work?
GoodRx is simple, easy, and free to use. Even if you don’t have health insurance, you can use the platform to enjoy better healthcare. If you are looking for a certain medication, all you have to do is go to the website, type in the name of the medicine and you will be given a list of its prices at all nearby GoodRx-partnered pharmacies. Similarly, you can save on prescription by using a GoodRx coupon.
How does GoodRx make money?
GoodRx makes money by selling healthcare services and providing advertising opportunities. The company primarily generated revenue through subscription fees, referral fees, coupon redemption fee, and advertising fees.
The platform facilitates transactions between third-party healthcare providers and patients and receives commission on each transaction. GoodRx also allows pharmaceutical companies to advertise patented medications on the platform and charges them for each ad campaign.
Here’s an overview of the revenue stream of GoodRx:
GoodRx offers a wide range of paid healthcare services, such as COVID-19 testing, general health screenings, and other types of medical examinations. GoodRx’s HeyDoctor, allows you to connect directly with the doctor. The platform charges $19 for each consultation.
The platform also allows medical professionals to advertise their services in the online market. They charge a commission fee for every ad campaign and transaction.
GoodRx generates most of its revenue from coupons. The platform provides coupons to patients that give them discounts of medications. More than 70,000 pharmacies across the United States accept the promo codes issued by GoodRx. The company receives profit when the code is used by a consumer to fill a prescription.
Most of GoodRx’s partners include pharmacy Benefit Managers (PBMs). GoodRx receives compensation from its partners as a commission-based fee or a fixed payment per transaction.
GoodRx Gold Subscription
GoodRx receives a large portion of its revenue from its premium subscription service. The platform gives coupons for more than 1,000 medications and healthcare services to its premium members.
GoodRx offers two subscription plans: individual membership and family membership. The former costs $5.99 per month and the latter costs $9.99 per month.
GoodRx also makes money by allowing pharmaceutical companies to advertise their products on the platform. The company has partnered with many pharmaceuticals to make medications more affordable for consumers. GoodRx charges a fixed amount for improving visibility on the platform.
Future Growth Engine
GoodRx has managed to outperform other online healthcare facilitators because of its prescription price transparency service. It seems that the company intends to maintain the existing business model to expand its customer base.
GoodRx has partnered with different types of companies, such as health education pharmaceuticals, to diversify its products portfolio. They've added an information tool to provide detailed answers to common health-related questions and have publicly stated their intention to keep adding more services to drive consumer savings.
The top competitors of GoodRx include softwares, information providers, and online portals that offer healthcare services.
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