1529: He Pays 100M+ Users To Use Their Phones (And It’s Profitable) w/ Dan Novaes
In this game-changing episode, Dan Novaes, the CEO and co-founder of Mode Inc., unpacks a business model that flips the script on how we value our time and data. He reveals the strategy behind rewarding over 100 million users for everyday phone activities—from playing games to reading news—and how his company turned a near-death experience into a $100 million crowdfunding success story. This episode is a masterclass for any entrepreneur who feels trapped by traditional growth and funding models. Dan breaks down why distribution is the ultimate moat in the age of AI and how acquiring smaller companies can be a more profitable and scalable user acquisition strategy than pouring money into ads. Tune in to learn how to build a movement, align incentives with your customers, and forge an unconventional path to massive scale.
💡 What You'll Take Away For YOUR Business
- 💰 How to leverage crowdfunding to raise millions and build a loyal community of investors, even when VCs say no.
- 🚀 Why M&A (Mergers & Acquisitions) is the new user acquisition—and how buying cash-flow positive apps can be more effective than ad spend.
- 📉 How to navigate a near-death business crisis and pivot out of desperation into your most innovative and successful chapter yet.
- 🔗 The "Distribution is the Moat" playbook for the AI era and how to build an unshakeable competitive advantage.
- 🤝 The power of aligning incentives with your customers to create a transparent and equitable business model that people want to be a part of.
- 📈 How to get to a billion users by acquiring 1,000 apps with 1 million users each, rather than trying to hit the "lottery" of building the next TikTok.
📝 About Dan Novaes
Dan Novaes is the CEO and co-founder of Mode Inc., the tech company behind Mode Mobile and Earn OS. An entrepreneur since his teenage years, Dan scaled a dropshipping business to $2 million in annual revenue while still in college. He then dove into the world of mobile apps, which led him to co-found Mode, a company dedicated to rewarding consumers for their time and data. Dan's unique approach to growth, which includes a massive M&A strategy and raising over $100 million through crowdfunding, showcases his expertise in building scalable, consumer-focused businesses outside of the traditional VC-backed path.
🎯 Dan’s BEST Piece of Advice for Wantrepreneurs and Entrepreneurs
"You have to really find what's right for you and be authentic to yourself because the moment that that authenticity comes through, then I think amazing things happen."
📢 Memorable Quotes
- “In the AI era, distribution is the moat.” – Dan Novaes
- “There's two ways to get to a billion monthly active users. You can create the next Telegram, which... is effectively like hitting the lottery... Or you can go out and acquire 1,000 apps that have 1 million monthly active users each.” – Dan Novaes
- "It was really out of desperation that initially even the idea [for crowdfunding] struck." – Dan Novaes
💡 Actionable Takeaways
- ✅ Explore Crowdfunding as a Funding Alternative: If the venture capital path isn't a fit for your business, research Regulation A (Reg A) crowdfunding as a viable way to raise capital directly from your customers and community.
- ✅ Analyze M&A as a Growth Strategy: Instead of defaulting to ad spend, research smaller, cash-flow positive businesses or apps in your niche. Consider if acquiring them could be a more profitable way to gain users and distribution.
- ✅ Conduct a "Personal Style" Audit: Take time to reflect on your authentic leadership style. Are you trying to emulate another entrepreneur? Identify what works for you and build your company's culture and strategy around your genuine strengths.
- ✅ Find Ways to Align Incentives: Look at your business model and ask, "How can I better align my success with my customers' success?" Whether through rewards, equity, or transparency, find a way to make your users feel like partners.
🔗 Links & Resources
