Start A Data Brokerage Business - Business Ideas
Data brokers are individuals and businesses that collect information or data from online activity and public records and sell it to other companies for marketing and advertising campaigns. Data broking is a big business estimated to grow at a CAGR of 6.8% in the next few years.
Therefore, starting a data brokerage firm in 2023 is a noble idea.
To start, decide on the type of research services hyou will provide and identify the databases and information sources that serve the particular area. Then, market your business and focus on providing excellent business.
Starting a data brokerage business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell demographic data brokerage, or selling demographic data brokerage online, you can use this page as a guide for everything you'll need to know.
Key Stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Office Space Expenses |
$0 |
$7,000 |
|
Employee & Freelancer Expenses |
$150 |
$250 |
|
Website Costs |
$223 |
$7,015 |
|
Business Formation Fees |
$600 |
$4,700 |
|
Software Expenses |
$162 |
$2,894 |
|
Advertising & Marketing Costs |
$0 |
$1,400 |
|
Total Startup Costs |
$1,135 |
$23,259 |
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
City-Data.com |
city-data.com |
3,487 |
|
|
CRMLS |
crmls.org |
9,547 |
|
|
IDC |
idc.com |
26,465 |
|
|
Bureau of Justice Statistics (BJS) |
bjs.gov |
97,943 |
|
|
Base |
singstat.gov.sg |
105,957 |
|
|
Acxiom |
acxiom.com |
112,558 |
|
|
Datafinder |
datafinder.com |
187,309 |
|
|
The Annie E. Casey Foundation |
aecf.org |
305,511 |
|
|
SmartCharts |
getsmartcharts.com |
534,849 |
|
|
HeyJackass! |
heyjackass.com |
537,234 |
|
|
Free Business Statistics, Financial Ratios and Industry Statistics by BizStats |
bizstats.com |
656,383 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Ability to start your business from home |
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
|
Little startup costs required |
The cost to start a data brokerage business costs significantly less money than most businesses, ranging anywhere from 62 to 23,259. |
|
Rewarding work |
Starting a data brokerage business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
|
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
|
No overhead costs |
To get your data brokerage business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money! |
| Cons | Description |
|---|---|
|
Crowded Space |
Competition is high when it comes to your data brokerage business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
|
Longer Sales Process |
A data brokerage business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers. |
|
Work can be inconsistent |
As a data brokerage business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have. |
|
Lack of benefits |
With a data brokerage business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming. |
|
Isolation |
Often times, as a data brokerage business, you typically work alone and do not have much face-to-face interaction with other team members. |
|
Taxes |
As a data brokerage business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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