Cracking the Code: How GoodRx Makes a Profit

GoodRx is a company that enables individuals to find and compare prescription drug prices based on their location. It has become a go-to resource for many Americans who are looking to save money on their prescription drug needs. With an increasing user base, questions have been raised about how GoodRx makes a profit. In this article, we will crack the code and analyze GoodRx’s business model.

The Origin Story: How GoodRx Came To Be

GoodRx was founded in 2011 by Doug Hirsch and Trevor Bezdek. In the early days, the team behind GoodRx noticed that prescription drug prices varied widely from one pharmacy to another. They realized that it was because there was no transparency in pricing. Drug manufacturers negotiated prices with each pharmacy, and these prices were not disclosed publicly. GoodRx set out to change that by making information about prescription drug prices transparent and easily accessible to anyone.

The Problem of High Prescription Drug Prices in America

America has some of the highest prescription drug prices in the world. It is not uncommon for individuals to pay high prices for their prescription drugs. The high prices are because the U.S. has allowed drug companies to set their prices without any regulations. As a result, companies often set high prices for their drugs, making them less affordable for low-income individuals. This has led to a rise in uninsured and underinsured Americans who cannot afford their medication.

How GoodRx Works

GoodRx makes it easy for individuals to search and compare prescription drug prices at different pharmacies across the United States. GoodRx provides a comprehensive list of prescription drugs, their respective prices at different pharmacies, and possible discounts or coupons available per drug. Users can compare and select the most affordable drug option.

Here’s how it works:

  1. Users enter the name of the drug they are looking for on
  2. The website generates a list of pharmacies that carry the drug and their respective prices
  3. Users can filter their search by distance from their location, pharmacy ratings, and pharmacy type (e.g., retail, mail order)
  4. Users can also access information about discounts, coupons, and savings opportunities provided by pharmacies
  5. Users can save and print coupons to use at their selected pharmacy
  6. The selected pharmacy is alerted of the coupons to apply to the prescription drugs

GoodRx’s Business Model

GoodRx is not a pharmacy. Instead, it partners with pharmacies and drug manufacturers to make the search and comparison of prescription drugs attainable. It generates revenue through partnerships with pharmacies and drug manufacturers that pay for customer leads, clicks, and transactions.

Pharmacy Partnership

GoodRx partners with approximately 70,000 pharmacies across America that provide prescription medications. Pharmacies pay a fee to GoodRx for prescription leads through their websites and apps/forms. This fee represents a valuable lead-generation opportunity for pharmacies, as it directs users to their website or storefront. GoodRx also promotes pharmacies that accept its coupons, coupons for which GoodRx receives a fee when utilized by the customers they refer to the pharmacy.

Drug Manufacturer Partnership

GoodRx partners with drug manufacturers to promote affordable prescription drug prices. These partners work with GoodRx to offer discounts on the drugs’ retail prices. GoodRx receives a commission when the coupons provided to users are redeemed, and the manufacturers pay them for the leads generated by end-users who are sent their way.

Is GoodRx Free?

Yes, GoodRx is free. Users don’t have to sign up for an account or complete an online process to use the app’s features. GoodRx earns a commission from its pharmacy and drug manufacturer partnerships, but it doesn’t affect what a user pays for prescriptions. The pricing GoodRx shows its users is the same as what they would find on their own.

Is GoodRx Safe and Legitimate?

Yes, GoodRx has legitimate deals with reputable pharmacies and drug manufacturers. The company aims to provide users with accurate and impartial information regarding prescription drug prices. GoodRx also has a team of pharmacists and medical experts who review the information and updates listed in the app. They make recommendations on the app’s basics, enabling it with accurate pricing and coupons that genuinely help people save money on their prescriptions.

GoodRx’s Impact on Prescription Drug Prices

GoodRx has played a significant role in enhancing competition among drug manufacturers and pharmacies, which has led to more transparent pricing. It empowers individuals who are on a budget to make informed decisions about their prescription drug purchases. GoodRx has also created a platform to hold drug manufacturers and pharmacies accountable for their prices. Its website allows users to read reviews of prescription drugs and pharmacies, giving them more power in the purchasing process.

GoodRx’s Competition

GoodRx is not the only app that helps users save money on prescription drugs. Some of its major competitors include:

  • Blink Health
  • Singlecare
  • RxSaver
  • WellRx
  • ScriptSave WellRx

These apps work similarly to GoodRx and can be valuable tools for those searching for the best prescription drug deals. However, GoodRx remains one of the most popular and easy-to-use apps for comparing prescription drug prices.

In Conclusion: GoodRx Has Cracked The Code

GoodRx has shown that transparency and competition can make a significant impact on a seemingly unregulated industry like prescription drugs. With its valuable partnerships with pharmacies and drug manufacturers, GoodRx continues to evolve to become a go-to resource for those searching for prescription drug deals. As prescription drug prices continue to be a concern for many individuals, GoodRx shows that there is always room for competition and transparency in the industry.


  • Abramson, B. (2021). Why Are Prescription Drug Prices So High in America? [Web article]. Healthline.
  • GoodRx. (2021). How GoodRx Works. [Web article].
  • Grover, A. (2021). How GoodRx Makes Money. [Web article]. Investopedia.

Most Common Questions and Their Answers:

  • Q: How does GoodRx make money?
  • A: GoodRx makes money through its partnerships with pharmacies and drug manufacturers. It earns a commission for prescription leads generated through its website, app, and coupons from both pharmacy and manufacturer partnerships.
  • Q: Is GoodRx free to use?
  • A: Yes, GoodRx is free to use. There are no hidden fees or premium services that require payment.
  • Q: How accurate is GoodRx pricing?
  • A: GoodRx prices are updated regularly and come directly from pharmacies and manufacturers, ensuring accuracy.
  • Q: Does GoodRx sell prescription drugs?
  • A: No, GoodRx does not sell prescription drugs. It provides information and coupons that help users save money on their prescription drug purchases.
  • Q: Can I use GoodRx with my insurance?
  • A: Yes, GoodRx can be used with or without insurance. However, it may not always be the cheapest option for those with insurance.

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