Monetizing Data - Does it work? Is it legal?

From your title I thought you were doing something interesting like taking on Acxiom.

All marketing is about monetising data.

If you are offering value in return for an opt-in and you've made it clear you are not going to spam the subscriber then you won't spam them right?

When you send people valuable content with links to something that might help them in an ethical way you reduce your chances of being called a spammer.

If on the other hand you decide to send people junk after they have given you their email then you deserve to have issues with spam.

My business gets a ton of spam everyday.

99% of it is from individuals I/We never subscribed to.

I don't have an issue with the spammers other than they add to the pile of crap.

The issue is with people and companies you trusted to give your email to either via opt-in or purchase who then become spammers.

Those people don't ever get any money from me again, ever.

Don't become that sort of marketer.

Best regards,

Ozi

I've been monetizing data for a little over 17 years. If it didn't work or if it was illegal, I wouldn't still be doing it.

If you buy data there will always be the potential that you could get some complaints. However, there are several steps that you can take to mitigate them and reduce the risks. If you can't handle such, it's not a business for you.

Acquiring 3rd party data is the most widespread way used to monetize data. You can get fresh / targeted email data that the users have given permission to receive messages from third parties. You get the opt-in record for each user and it's 100% can-spam compliant.

You can also get aged 3rd party data but it is more involved and requires special tools to do successfully.

There is also rev-share data, which is basically 3rd party data (typically fresh / targeted) that you get for $0 upfront costs and you split the revenue generated from sending it with the data provider. Those that provide rev-share are typically just aggregating the data and aren't marketers and provide it to those that know how to monetize. One thing to think about is that rev-share data wouldn't exist if monetizing data didn't work.

You can also generate real-time, co-reg leads, which is basically 1st party opt-in. You place an ad on the co-reg network and it is displayed by their publishers and users request more info if they are interested. You pay on a per lead basis for the leads generated. Going this route you will be far less likely to get complaints because it is essentially 1st party data that they are requesting more information directly from you.

You can also find companies that have opt-in / buyer lists that do little with them or nothing at all via email marketing. This requires more work because you have to find the companies, where the other options above are easy to get access to. This is what would be considered 2nd party data, as you manage the companies data and monetize it for a percentage of the net profits generated.

Promoting PPL (pay per lead...lead generation) offers is the easiest way to monetize data because the user just has to fill out a form rather than having to take their credit card out and make a purchase. So typically PPL offers will convert at a much higher rate than offers that require a sale to be made.

Basically, you are promoting PPL offers because they offer the path of least resistance to generating conversions/$$$ and convert the data into cash producing assets. This is not to say that you won't ever promote an offer that is a straight sale, but typically you will do it on the backend unless you have data specifically targeted to the offer.

There is far more that goes into it in order to be successful than just acquiring the data and sending it. Done right it can be extremely profitable. Everyone that I know that is in the business and knows what they are doing, for the most part, does 6-7 figures. While that is a huge range, much depends on ones ability to scale and effectively build / manage the infrastructure required to scale.

It's not likely you will find many that will be able to provide you with much insight into the business because it's not mainstream. Also, the majority of marketer have been told that you should never buy a list and then go out and preach the same to others as if it was the truth. So everyone assumes that's all that monetizing data is when it's not.

Thanks for your really comprehensive reply. I will be in touch

No its not legal. Yes it does work.

If your content and offer is relevant to the target audience - then it's not spamming.

With a target email list, whether warm or cold (i.e. purchased), you can create an email campaign that's relevant and valuable to them.

With that said, when it comes to cold emailing you'll want to use an email sending software that allows sending to cold or purchased contacts.

A quick google search will help you find the right solution.

Good luck!

Here is a great resource on how you can be compliant with the law in the USA:
https://www.ftc.gov/tips-advice/busi...guide-business