Sharing Daily Discoveries About Personal Finance And Business Topics

Selling And Mining Data As The Main Source of Business Income

I am pretty sure by now almost everyone has heard how the social media site Facebook has taken a huge beating as a result of the news where a lot of its user’s data has been used in questionable ways by certain companies. They even paid for an advertisement in a newspaper to issue the apology to hopefully regain people’s trust. This was really fascinating to me because it’s not too surprising that a lot of companies treat data like this as a goldmine and are willing to pay big dollars for it.

This reminds me of a session I attended before where these venture capitalists were seeking for new entrepreneurs to work with. The challenge was to create a company that would completely free for the user but at the same time you need to find a way to keep the company running financially. While I had a lot of ideas selling data actually did cross my mind as a lot of companies do that. However, I was trying to think more long-term, even though this was a fictional business, that if people knew you were selling data they could get apprehensive about it.

So I decided not to put that down as an income source. One person actually did use that data selling routine and those venture capitalists were super impressed with it. When thinking back to that and this Facebook example it makes me wonder if that company would have suffered the same fate in a sense. But that should tell you that data is big business and whenever you fill out those personality surveys or whatever for rewards remember that there is often a business motivation to it.

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