15 {{ upvoteCount | shortNum }}
15 {{ upvoteCount | shortNum }}

Selling your customer data? What options are there?

by MsWanda
10 replies
Hi all,

This is my first post on the forum. I've been reading many threads and posts and find the common knowledge here amazing!

So I want to tap into your collective knowledge, post my first question and hopefully get some of your valuable feedback.


I am building a new community site and am looking at options to monetize it. I am looking into a variety of options from paid memberships to advertising but the one thing I would like to get your feedback on today is the value of your customer database. To be more precise, what options exist around DIRECTLY monetizing a user database by selling user profiles?

- Who buys customer databases? (I would be looking at established/white hat buyers preferably)
- Where can you find them? Are there any reputed marketplaces?
- What is a user typically worth?
- What is the minimum required user profile data? What kind of data is the most valuable (I know this might vary greatly depending on what info you have and what your buyer might need)?
- When selling user data, what would be considered "acceptable" vs "frowned upon"

If anyone has any insight that would be really helpful

XoXo
Wanda
#customer #customer data #data #options #selling
  • Profile picture of the author JohnMcCabe
    Wanda, I have two thoughts for you on this...

    First, if you take this road, be completely upfront about it. Tell people that their information will be shared with third parties. Include it in your TOS and privacy pages (required). You also want to give people the option of NOT having their information shared.

    Look at the sweeps many mainstream magazines run online. When registering an entry, you'll see a series of checkboxes.

    > I've read and agree to the rules and TOS...
    > Send me periodic updates and offers...
    > Send me offers and updates from partners...

    Second, look for a good list broker that handles lists in your niche. Since the broker makes their money by matching list owners with list buyers, they should be able to answer your questions from recent market experience.

    Most companies that share lists for money don't actually sell the data, as that means giving up rights to use it themselves. They actually rent the data, usually for one-time use by the renter. Again, a good list broker should be able to explain your options.

    Good luck.
    {{ DiscussionBoard.errors[4655359].message }}
  • Profile picture of the author HeySal
    I have words on this one, too. -- It will be a cold day in hell before I sign up to anything via a marketer that is going to sell my data. If you've been reading in here, you should already be familiar with issues about people using emails of customers as if it's their right to them simply because someone bought a product.

    John is very right that you need to spell that out in your TOS and privacy statement. If you claim customer data is secure, you better make sure it is.

    I would think that maybe you should find a more ethical means of monetizing your site instead of abusing your customers for a few bucks. You might just find that people are a little reluctant to deal with you after even just seeing this post. If you would treat your customer's info like this - what else might you be up for to make a buck?

    Doing things the ethical way takes more time - but at least you don't have to worry about people finding out 24/7 and you don't have to worry about legal issues. You'll never come to a time that you have trouble facing yourself in a mirror, either.
    Signature

    Sal
    When the Roads and Paths end, learn to guide yourself through the wilderness
    Beyond the Path

    {{ DiscussionBoard.errors[4655422].message }}
    • Profile picture of the author JohnMcCabe
      Sal, to be fair, if Wanda is transparent about her terms (not just a line buried in a privacy statement no one ever reads), and people want to hear what else is available, I don't see anything unethical or abusive about it.

      Whether the practice crosses any ethical lines depends entirely on the execution, not the practice itself...
      {{ DiscussionBoard.errors[4655473].message }}
      • Profile picture of the author cestrian
        i agree with johnmc being upfront that she intends to share personal info.she could however give subscribers an option to opt out of thier details being included on any list for distribution .
        {{ DiscussionBoard.errors[4656426].message }}
    • Profile picture of the author cashtree
      Originally Posted by HeySal View Post

      I have words on this one, too. -- It will be a cold day in hell before I sign up to anything via a marketer that is going to sell my data. If you've been reading in here, you should already be familiar with issues about people using emails of customers as if it's their right to them simply because someone bought a product.

      John is very right that you need to spell that out in your TOS and privacy statement. If you claim customer data is secure, you better make sure it is.

      I would think that maybe you should find a more ethical means of monetizing your site instead of abusing your customers for a few bucks. You might just find that people are a little reluctant to deal with you after even just seeing this post. If you would treat your customer's info like this - what else might you be up for to make a buck?

      Doing things the ethical way takes more time - but at least you don't have to worry about people finding out 24/7 and you don't have to worry about legal issues. You'll never come to a time that you have trouble facing yourself in a mirror, either.
      You'd think most would be like you, fight the good fight, be against privacy abuse, but the reality is, that's typically not the case. Example, facebook, that garbage site, people just don't care. They'll let you sell all their data as long as they can "poke" and stalk their friends.And there lies the problem...if I let my personal feelings get in the way of business i'd stay very very far away from facebook, unfortunately that's a potential revenue stream so I can not.
      {{ DiscussionBoard.errors[4661192].message }}
      • Profile picture of the author MattVit
        Sell their passwords to Anonymous.


        DISCLAIMER: Don't sell their passwords to Anonymous.
        Signature

        {{ DiscussionBoard.errors[4661387].message }}
  • Profile picture of the author SteveJohnson
    Wow, Sal - did she punch your hot button or what?

    I notice one of the questions she asked was about what data should be for sale and what shouldn't. That tends to make me think she sees her database as valuable but also understands there are lines that shouldn't be crossed.

    I don't think there's anything at all wrong with selling demographic information to one of the aggregators as long as she's upfront about it as John said, and doesn't provide any 'personally identifiable information' without a clear affirmation from the customer/client/member/whatever that they agree to it.

    I think you might have read a little too much into her questions.
    Signature

    The 2nd Amendment, 1789 - The Original Homeland Security.

    Gun control means never having to say, "I missed you."

    {{ DiscussionBoard.errors[4656649].message }}
  • Profile picture of the author MsWanda
    Hi all,

    First of all, many thanks for your responses!

    My apologies for having been unclear about my question and triggering some hot buttons (Sal, asking a question about what is acceptable doesn't mean I have already crossed the line. I am actually trying to get a better understanding of where the line is, because I care!).

    Just to be perfectly clear, I am growing a community the legit way and I am in for the long run. I am absolutely NOT in it to make a quick buck or to sell out users.

    My site goes through a double opt-in process and I have never ever sold out a customer. Heck I don't even put advertising on my site!

    The reason I am asking the question is to evaluate what CAN be done and what SHOULD be done, although that line might be different from person to person.

    Many Fortune500 companies have websites that allow them (after opt-in) to share data with third parties and partners (e.g. airlines, car rentals but to name a few). So as long as you are upfront about it and make it opt-in. That's what I am trying to understand with my post. When an airline shares data with a car rental company, how does the sharing process work? How do you RENT out without giving up all the details? I m trying to understand how these processes work and if I should spend time looking into them.

    John provided a good start for me by mentioning List Brokers.
    Has someone experience working with those and could shed some more light on the benefits and drawbacks?
    Are there any reputable List Brokers?

    Thanks
    {{ DiscussionBoard.errors[4659514].message }}
    • Profile picture of the author JohnMcCabe
      It's been awhile, but the process for renting lists for direct mail goes something like this:

      > You (or your broker) selects lists that appear to match your target market. For example, if I have a travel agency, I might rent a list from Travel magazine, or from a catalog company selling luggage.

      > I determine how many pieces I want to mail and negotiate the rental fee.

      > The list owner prints the information on whatever media we've agreed on - electronic database file, index cards, mailing labels, etc. That list will be seeded with addresses belonging to the list owner so the owner can enforce the rental agreement (i.e., one time use).

      > I mail to the list or a portion of the list. If it's a new source, I'll test it by mail to a smallish sample of the list. If it's a winner, I'll mail to the rest of the list.

      > Any takers I get from the mailing go on MY house list, so that I can contact them again without paying another rental fee.

      Wanda, in your case, you could get different prices for different levels of data. That could span anything from just the email address to the full profile - with appropriate permission, of course.

      In order to keep control, you probably want to seed your database with dummy addresses that will receive list renters' emails so you can monitor their actions.

      You may even elect to do the mailing for them, and they never get the actual details at all.

      To get in touch with a good list broker, you could start with the Direct Marketing Association (DMA: Direct Marketing Association | Conferences, Seminars, Research & Articles)...
      {{ DiscussionBoard.errors[4661142].message }}

Trending Topics