Earlier this year, a friend and I explored what types of business models we like. As we talked, I realized my favorite businesses all have one thing in common.
They are no-brainer businesses.
No-brainer businesses are those with business models that provide value with no downside. Usually, the company gives the customer something for free and makes money in a different way.
Because customers get something valuable for free, these businesses generally grow fast. They create a win–win situation for everyone involved.
Over time, I’ve compiled a list of companies with no-brainer business models.
| Company | Product | Monetization |
| Divvy | Automate expense reporting for businesses for free | Make money via slice of merchant credit card fees |
| Previ | Lower individuals’ credit card bills by 20% for free | Make money through partnerships (fixed fees for lead generation) |
| Route | Provide e-commerce owners package insurance for free | Make money from consumers paying a fee at checkout |
| Pattern | Scale e-commerce stores with $10M+ in revenue internationally and through new channels for free | Make money from margin on product sales |
| Mainstreet | Qualify companies for tax credits for free | Make money by sharing a small cut of earnings |
| Fareharbor | Provide booking software to rental & tour companies for free | Make money from booking fees charged to consumers |
Do you see the pattern?
Divvy’s story alone demonstrates the power of a no-brainer business. That business model, along with great execution, led a team from $0 to a $2.5 billion-dollar exit by Bill.com in 5 years. The model works.
I thought about this for several months when I saw a post from Alex Hormozi about how to win in a market. He defined no-brainer businesses well.
To take over a market:
— Alex Hormozi (@AlexHormozi) August 23, 2023
Make it better.
Make it free.
(Then, monetize another way.)
I liked it so much that I stole from him and created a rhyme to better define a no-brainer business:
Make it better.
Make it free.
Monetize it differently.
In the spirit of no-brainer businesses, I challenge you. When exploring ideas, writing a business plan, or investing, be creative. Think like there is no box. Find that model that doesn’t just generate revenue but reverberates value. Make a no-brainer business.
