Podcast Summary: The Everyday Millionaire

Episode 227 — Dan Novaes: Standing at the Forefront of Innovation in Technology and Entrepreneurship

Host: Patrick Francey
Guest: Dan Novaes, CEO & Co-Founder of Mode Mobile
Release Date: September 2, 2025

Episode Overview

This episode delves into entrepreneur Dan Novaes’s journey, exploring how he and his team at Mode Mobile are flipping the value equation in mobile technology. The featured discussion covers the disruptive “EarnPhone” concept — a device (and business model) that pays users for time spent on their smartphones — as Dan shares insights on innovation, team-building, exponential growth, company culture, leadership lessons, and his unorthodox path from childhood side hustler to leading a global tech movement.

Listeners are treated to lessons on entrepreneurship, the future of earning from digital engagement, and transparent leadership in fast-growth companies.

Key Discussion Points & Insights

1. Mode Mobile: The "Earn as You Go" Revolution

• Challenger Brand or New Category?
  Dan clarifies Mode Mobile is not directly taking on legacy smartphone makers, but creating a new category with the "EarnPhone." The premise: if people spend 40–50 hours a week on smartphones, why not turn that attention into income?

  "You know who's making the money from that time and energy spent, and it's big tech... Our whole thesis is, like, hey, if people are going to spend this much time on a smartphone, is it possible to make that an income-generating activity?"
  — Dan Novaes [03:09]

• How It Works:

  • Users can either buy an EarnPhone or download the Mode app onto existing Android devices.
  • Earn rewards for various smartphone activities (music, gaming, shopping, charging, unlocking, etc.)
  • The platform is primarily software-based, now shifting from hardware manufacturing toward licensing its technology to other carriers and OEMs.

  "At the end of the day, we're much more of a software company..."
  — Dan Novaes [03:54]

2. Genesis of the Idea: From Failures to Product-Market Fit

• Origin Story:
  Early ventures into app-building and music streaming encountered failures, but one key discovery: users loved the idea of being paid for digital activities.

  “We just threw up a landing page...and we literally had like 250,000 people sign up within like a month off of just a signup list.”
  — Dan Novaes [05:38]

• Pivot to Hardware:

  • The EarnPhone idea was born when Dan realized people were more committed to devices they’d invested in, versus free apps.
  • Initial manufacturing experiment (5,000 phones) quickly sold out, showing strong retention and engagement.

  “It's kind of like...if you go sit down at a restaurant and a waiter just brings you tap water versus you ordering a bottle of Pellegrino...you're committed to it, you paid for it.”
  — Dan Novaes [05:38]

• Growth:
  From near-zero revenue in 2019 to $25M by 2022, making Mode Mobile Deloitte’s #1 fastest-growing software company in America.

3. Business Model: Behind the Scenes

• Monetization:

  • Majority of user payouts are funded by advertisers, similar to how Instagram or Twitter monetize.
  • Mode shares its advertising revenue with users, often splitting payouts 50/50 (e.g., a $100 incentive for a new brokerage account).

  "Our whole thesis is like, okay, can you align that value equation a bit better for people?"
  — Dan Novaes [10:18]

• Expansion Strategy:

  • New focus on buying and rolling up profitable apps and services for Mode’s ecosystem ("a differentiated business model"),
  • Company transitioning out of hardware to partner licensing.

4. Crowdfunding & Community Ownership

• Unique Crowdfunding Model:

  • Over 52,000 shareholders via Reg CF and Reg A+.
  • Minimum investment of $1,000; users can also redeem app-earned points for shares (SEC-qualified).
  • Crowdfunding treated as a product within the company, fostering deep community investment and loyalty.

  “If you don’t have money to invest, you can actually download the app...and redeem your points that you earn in the app for shares. And we actually got qualified by the SEC.”
  — Dan Novaes [46:24]

• “Cult” Loyalty—Inspired by Berkshire Hathaway & Apple:

  • Special investor perks, unique webinars (e.g., with Steve Wozniak), and a focus on creating true “everyday shareholders.”

5. Personal Journey & Entrepreneurial DNA

• Early Hustle:

  • Born in Brazil, raised in Indiana. Childhood arbitrage ventures (selling magazines and Pokémon cards, then eBay flipping).
  • First exposure to entrepreneurship was fueled by recognizing opportunity and taking calculated risks.

  “I would bring the Playboys back and I'd sell them per page to kids...until I got caught and got, you know, in extreme trouble from my parents.”
  — Dan Novaes [21:36]

• Nature vs. Nurture:

  • Parents were not entrepreneurs but gave exceptional freedom.
  • Observed friends with more traditional upbringings eventually also becoming entrepreneurs, but often later and with a different (more risk-averse) style.

6. Leadership, Culture & Team Building

• Learning from Mistakes:

  • Over-hiring and layoffs during the crypto and fintech downturn forced Dan to rethink team structure and company culture.
  • Inspired by Constellation Software's decentralized "GM and business unit leader" model.

  "...the leverage that I've gotten as a leader in the company is, like, we're doing the absolute most that we've ever done. But I feel that I have the most time that I've ever had."
  — Dan Novaes [16:55]

• Core Values and Culture:

  • Developed the ACT (Action-driven, Curiosity, Caring, Thoroughness) core values acronym, with regular all-hands and reinforcement (e.g., weekly ACT meetings, usage of Bonusly for peer recognition).

  “Curiosity is something that I think is just, it's the best trait that a person can have.”
  — Dan Novaes [34:25]

• Mission-Driven Business:

  • Focus on enabling financial empowerment for budget-conscious users.
  • Sharing real user stories and impact internally keeps the team motivated.

7. Inclusion, Transparency & Distributed Leadership

• Transparent sharing of financials and OKRs with the whole team.
• Anonymous MPS surveys (“How happy is our team?”) shared company-wide to monitor workplace satisfaction.
• Empowerment through decentralization, role clarity (e.g., hiring a Chief People Officer and CFO early).

8. Handling Growth & Adversity

• Managing Pressure:

  • Dan underscores the value of resilience and problem-solving during crisis (e.g., using equity compensation when cash was tight).
  • Emphasizes that “suffering is a choice,” and leaders must own their hiring/firing decisions.

  “The buckle at the end of the day always stops with the founder and CEO... suffering is a choice.”
  — Dan Novaes [58:31]

• Self-Awareness & Continuous Improvement:

  • Dan invests in business coaching and peer mastermind groups, and advocates stepping back for retrospection during challenging times.

  “You have to take that time, you know? And so I think that, like, to me, that's like... having the self-awareness... to do that is, was, is like a leadership characteristic that I want, I would want to see in my company.”
  — Dan Novaes [53:09]

Notable Quotes & Memorable Moments

• On Disrupting Big Tech:

  "Who's making the money from that time and energy spent? It's big tech... Is it possible to make the smartphone free?"
  — Dan Novaes [03:09]

• On Building Product-Market Fit:

  "We literally had like 250,000 people sign up within like a month off of just a signup list, you know, at that time. And so, you know, there was clearly product market fit there."
  — Dan Novaes [05:38]

• On Transparency & Culture:

  "People know our numbers, how things are going, how things are not going, the good, the bad, everything. And it's something that's very refreshing for a lot of people..."
  — Dan Novaes [34:25]

• On Leadership & Ownership:

  "You can be frustrated, like things happen, you know, but suffering is a choice... The buckle at the end of the day always stops with, you know, the founder and CEO."
  — Dan Novaes [58:31]

• On Failure as Catalyst:

  "I am really thankful I did because what I gained from that was in some cases, it was like a decade, I feel like, of learning..."
  — Dan Novaes [60:09]

Timestamps for Important Segments

| Time | Topic | |-------|-------| | 03:09 | Creating the EarnPhone category and vision | | 05:38 | Discovering product-market fit through failure | | 10:18 | Explaining the underlying business model | | 12:59 | Transition out of hardware, focus on licensing | | 14:47 | Android vs. Apple platform focus | | 16:55 | Lessons in team building and organizational structure | | 21:36 | Dan’s early entrepreneurial journey | | 34:25 | Core values, ACT, and building remote culture | | 41:13 | Growth outlook, impact on the middle class, and future direction | | 46:24 | Crowdfunding model and community ownership | | 53:09 | Leadership, self-awareness, and transparency in hard times | | 58:31 | On CEO responsibility and managing adversity | | 60:09 | The value of adversity and learning from setbacks |

Final Thoughts

Dan Novaes’s story is a testament to the power of innovation, resilience, and purpose-driven entrepreneurship. Mode Mobile’s EarnPhone platform is disrupting both the tech landscape and traditional crowdfunding, empowering “everyday millionaires” by sharing value that usually accrues to big tech. The episode is packed with valuable insights for entrepreneurs, intrapreneurs, and anyone seeking to rethink business-as-usual in the digital economy.

Interested listeners can learn more or invest via: invest.modemobile.com