Episode Overview

Podcast: Making It with Jon Davids
Host: Jon Davids
Episode: 241 - They Built a $2M/day Business with a Spreadsheet
Date: January 20, 2026

Main theme:
Jon Davids breaks down how NerdWallet, begun as a simple spreadsheet comparing credit cards, became a $2 million per day business. He explores the strategies that powered NerdWallet’s growth, the importance of category selection, the role of arbitrage in online business, and actionable business lessons for entrepreneurs.

Key Discussion Points & Insights

1. The Humble Beginnings of NerdWallet

• Story Origin (00:31):
  • In 2009, Tim Chen, a finance professional, created a credit card comparison spreadsheet to help his sister navigate the “biased and spammy” options online.
  • He and engineer Jacob Gibson posted this spreadsheet on a new site: nerdwallet.com.
  • Result: Visitors spent an unusually long time on the raw, value-packed site, triggering Google’s ranking algorithm to push NerdWallet higher in search results.

“They throw up a site of their own...paste the credit card comparison spreadsheet that Tim made up...and hit publish. NerdWallet is officially online.”
— Jon Davids [01:35]

2. From Free Tool to Revenue Engine

• Affiliate Launch (03:21):
  • In 2010, they added affiliate links, earning referral fees from credit card companies.
  • The business quickly scaled: by 2010 they made $65,000; by 2014, revenue was $44 million, a 67,000% growth over four years.
  • The model: Deliver “legit data” with no preference, let users choose, and monetize clicks.

“Every click to Visa or Capital One is worth so much money today.”
— Jon Davids [05:10]

3. Scaling, Scope, and Counter Positioning

• Imperfect Beginnings, Fast Execution (06:00):
  • Emphasis on starting ugly: The first version was embarrassingly basic—and that helped.
  • Too many founders delay shipping, chasing perfection. Jon drives the point:

    “If you’re not a little bit embarrassed by version one of your thing, it probably means you waited too long...” [07:11]

• Counter Positioning (08:15):
  • NerdWallet’s raw, utilitarian look actively stood apart from the polished, salesy bank sites.
  • Key lesson: In crowded markets, standing out often means going the opposite direction from incumbents.

“The only positioning for a new entrant into a market is counter positioning...If the big guy is clean, you’re dirty.”
— Jon Davids [08:25]

4. The Power of Category Selection

• Why Credit Cards? (09:32):
  • Credit cards are immensely valuable—a customer’s LTV (lifetime value) stretches decades.
  • Picking the right category often solves most business problems. Comparing sneakers yields low referral fees; credit cards, much higher.
• Focus in Execution:
  • Focus means doing fewer, higher-value things, and picking which high-value things to do.

“Even a mildly successful version of NerdWallet would be way better than a really successful version of, say, a sneaker comparison website.”
— Jon Davids [10:12]

5. Market Selection vs. Execution

• The Cost of Choice (11:10):
  • Example: Average coffee shop owner faces tight margins, constant operational headaches.
  • In contrast, a funeral home—while unglamorous—has a better business profile (high margin, recession-proof, quick sales cycle).
  • The market you choose can “delete 80%” of common business headaches.

“Picking the right market to serve can delete like 80% of those problems. They just melt away.”
— Jon Davids [12:01]

6. Arbitrage Opportunities: Then and Now

• NerdWallet’s SEO Arbitrage (14:37):
  • Tim & Jacob seized early, underpriced Google traffic before everyone was running complex SEO strategies.
• Other Historic Arbitrages:
  • Zynga (Facebook games/newsfeed, 2007-2011: $1B sales, $12B valuation)
  • Groupon (Email, 2008-2011: $1B sales, $16B valuation)
  • Uber (“Three-pronged” arbitrage: smartphone, GPS, mobile payment, 2009: $170B valuation in 2026)
• The Lifecycle:
  • Arbitrage can give you lift-off, but you must “pivot away” and build a real business moat.

“You start with an arbitrage, but you can’t rely on that arbitrage forever. You gotta pivot away...and build a real moat.”
— Jon Davids [18:08]

7. Modern Arbitrages (2026)

• Three Areas of Opportunity (21:34):
  • Facebook: Organic content is driving explosive growth and high-quality audiences now.
  • Live Shopping: TikTok shops, Whatnot—a proven model in China moving to the West.
  • AI Search: Generative AI engine optimization (“GEO”), optimizing for ChatGPT, Claude, Gemini, etc.

“Giants will be built in the next 12 to 24 months on ChatGPT, on Claude, on Gemini.”
— Jon Davids [23:10]

Notable Quotes & Memorable Moments

• On Just Launching:

  “Execution over perfection. That’s one of our core tenants at Influicity.”
  — Jon Davids [07:40]

• On Counter Positioning:

  “If the big guy is suit and tie, you’re a hoodie and kicks. If the big guy is black coffee, you’re a triple oat milk latte, half sweet, extra foam…”
  — Jon Davids [08:40]

• On High-Value Categories:

  “Credit cards are one of the most high value decisions a customer can make...Once he made that decision, this business basically couldn’t fail.”
  — Jon Davids [09:51]

• On Choosing Opportunities:

  “Saying yes to one thing means saying no to every other thing, every other market, every other business opportunity. Time is your most valuable asset, my friends. So be very intentional with it.”
  — Jon Davids [13:31]

• On Facebook’s 2026 Resurgence:

  “Do not sleep on Facebook.”
  — Jon Davids [21:53]

• On Arbitrage History:

  “These opportunities are few and far between, but they are game changing when they happen. Generational wealth can be built in almost no time.”
  — Jon Davids [20:15]

Timeline / Timestamps

• [00:31] — NerdWallet’s origin story: Spreadsheet solves a real problem
• [03:21] — Monetization: Affiliate links; the birth of the revenue engine
• [06:00] — The value of quick, imperfect launches
• [08:15] — Counter positioning: Winning by looking different
• [09:32] — Power of category selection: Why credit cards trump sneakers
• [11:10] — Market choice: Coffee shops versus funeral homes
• [14:37] — Arbitrage opportunities and NerdWallet’s “free traffic” advantage
• [16:44] — Historic arbitrages: Zynga, Groupon, Uber
• [18:08] — Arbitrage’s limits: The need for a defendable business
• [21:34] — Arbitrage opportunities for 2026: Facebook, Live Shopping, AI Search

Closing Reflections

• The story of NerdWallet demonstrates how simple, focused value creation, quick launch, and shrewd category selection can unlock massive growth.
• Arbitrage opportunities in audience attention remain vital for startup success, but require adaptation as markets mature.
• Jon Davids encourages entrepreneurs to act intentionally, launch quickly, and seek category and market advantages for long-term success.

Quote to End:

“How cool is it that a guy could make a spreadsheet and turn that into a legitimate multi million dollar business that’s still around today, valued at over a billion dollars? God, I love capitalism.”
— Jon Davids [24:15]