What is Doximity?
In the last couple of decades, social media networks have become highly prevalent. However, the market only includes some top contenders competing for the same users. Usually, users think of Facebook, Instagram, Snapchat, etc., as the best social media networks. However, other companies have also come forward, focusing on more niche markets. One of these includes Doximity.
Doximity is an online networking service for medical professionals from all fields. The company started its operations in 2010, focusing on a niche market. Like LinkedIn, Doximity is a networking service for professionals. However, it increases its niche market even further by limiting services to users related to the medical field. The platform offers curated medical news, telehealth tools and case collaboration.
Doximity was an idea that came from Jeffery Tangney, Shari Buck and Nate Gross. While they started their company in 2010, they have had a variable past. Of these founders, Tangney was the one who boasted the most experience. Having graduated in 1993 in Mathematics, Tangney worked as a software developer for four years. Later, he joined Stanford to obtain an MBA degree.
At the time, he joined the healthcare division Goldman Sachs in the 1990s. He was also living with a trained physician, who was his roommate. At the time, both of them paired to develop an app for the Palm Pilot. The idea was similar to Doximity, and the app focused on providing critical information to doctors. They also found a third partner through Stanford’s Graduate School of Business. While they obtained funds to start the operation, their project failed for various reasons.
Despite the failure, Tangney did not give up the idea of this platform. At the time, their app was called Epocrates. However, Tangney lost the support of his partners, who left for other ventures. Tangney also left the business in 2009, although Epocrates went public in 2011.
Tangney joined Interwest Partners, where he came up with his next idea. He recruited Shari Buck, who worked with him at Epocrates. Similarly, they obtained the services of Nate Gross, who was an MD from Emory University. In 2010, the founders came up with Doximity as a private social network for medical professionals. The company raised funds from several sources and developed its stature.
How does Doximity work?
Doximity works similar to other social media networks. However, it is only for medical professionals. Users can get started on the platform if they are US healthcare professionals. This platform does not offer services to other users. For eligible users, the process to use and join the Doximtiy platform requires getting the free Doximity app. This app is available on both the iOS and Android app stores.
Once users download the app, they can use the “Find your profile” button. This process requires them to enter their first and last name. Once they do so, they can click the “Find my profile” button. Consequently, the app searches the user profile based on information in the NPI database. Doximity maintains a list of professionals, and only those registered on the database can sign up.
After searching, Doximity will provide the user with a list of the profiles that match their name. Users can then select the profile that belongs to them. If the app does not fetch any results, users can also use their maiden or nickname to search for their profile. Conversely, if they don’t get any results, they can create a new account at the bottom of the screen. This process will take them to the manual registration page.
However, users cannot select any profile. The app requires them to verify their profile before handing it over. Doximity asks various verification questions. If a user is not an MD, DO, NP or a PA, this process will differ. Apart from those questions, users must also provide other basic information. For example, they will need an email address, password, etc. The verification process is faster if they use a professional email address.
Doximity will take some time to verify the user. If a user does not receive their verification, they will receive an email with further instructions. However, if they get verified, they can start using the network. They can download the mobile app to access Dialer and other workflow tools. The platform also provides medical news, telemedicine appointments, calling patients, and other features.
What is the Doximity business model?
Doximity is a networking platform for medical professionals. However, it does not work similarly to other social media networks. Most of those networks use an advertising business model. Consequently, they sell user views and attention to advertisers. However, Doximity does not rely on that business model. Instead, it provides advertising solutions to specific medical and pharmaceutical companies.
Doximity primarily uses a subscription-based business model. Under this model, the company charges its users a subscription fee. These fees come from various solutions. For example, Doximity’s business model includes marketing, telehealth and hiring solutions. Each of these solutions provides a different revenue source for the company. These do not fall under the same package.
Doximity’s business model also involves managing operations in a well-organized manner. The company refrains from excessively spending on unnecessary features. Furthermore, its niche market allows it to attract specific users. Unlike other social media networks, Doximity understands and caters to its userbase. Consequently, the company generates significant revenues and profits through its operations.
Doximity’s primary userbase includes doctors and medical professionals. The company caters to their needs to ensure high profitability. Apart from these, the company also makes money from other parties, such as medical and pharmaceutical companies. While the company has not been active in the investment market, it acquired a healthcare company in 2020. This acquisition will allow Doximity to boost its revenues further.
How does Doximity make money?
Doximity generated revenues of $206.897 million in 2021. In the same year, the company reported an operating income of $53.303 million. While these results coincided with the COVID-19 pandemic, the company has also been profitable in the past. Overall, Doximity makes money from the three primary solutions it offers.
Marketing solutions
The primary income source for Doximity comes from its marketing solutions. These solutions fall under the subscription plans offered by the company. In this segment, Doximity works with pharmaceutical companies to execute campaigns. These campaigns include ads targeted toward specific users. Sometimes, it also allows the partner to message medical professionals directly.
Hiring solutions
Doximity also makes money from its hiring solutions. This segment includes charging a subscription fee for the companies seeking to hire medical professionals. Since Doximity has a list of these professionals and their areas of expertise, it provides better hiring solutions. The platform also allows physicians to upload their CVs and other relevant credentials. This information can help recruiters find better medical professionals.
Telehealth solutions
Doximity also makes money from its Telehealth solutions. However, these features are relatively new, introduced in 2020. These solutions offer health systems, medical groups and individual practitioners to perform virtual patient visits. Initially, it included the Dialer tool, which the company extended to a video and audio tool. For these tools, the platform charges on a per-user basis.
Conclusion
Doximity is a networking platform for medical professionals. The company launched in 2010 and currently offers various solutions. Primarily, it operates through its apps or website, where users can sign up and use several tools. Doximity’s business model differs from other social media networks, although it has some similarities. The company makes money from three solutions, as listed above.
