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4 Burning Questions for Monetizing Sensitive Data

4 Burning Questions for Monetizing Sensitive Data

The idea that you should monetize your data is likely not a new one. You’ve seen the charts that explain Alternative Data’s massive revenue growth, but you’ve likely considered your data “too sensitive” to actually monetize. The barriers to safely share the data have seemed too large.

If that’s the case, then this quick guide is for you. Below are the four most common questions we hear when working with customers to monetize their sensitive data. They are common across nearly all data types (from geolocation to healthcare) and all sizes of companies (from focused start-ups to the Fortune 500). We are sure you’ll find them useful when making a go/no go decision for actually implementing a monetization strategy.

QUESTION #1

Is my data too sensitive
to monetize?

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Perhaps surprisingly, the answer to this first question is almost always no. While you may have considered the regulatory, customer, and headline risks, what you may not have thought through is this: What does someone want from my data in the first place? In the vast majority of cases, a data consumer wants the statistical insights from your data, rather than the data itself. If this is true, we can actually bring solutions to bear that allow even the most sensitive data to be analyzed, without any risk of data exfiltration or exposure. Change your mindset: you are selling insights, not data.

For example, a population health company, that is subject to HIPAA, partnered with LeapYear to monetize insights from their data to institutional asset managers in a fully compliant, safe, and secure manner – and generating 8 digit returns for that effort.

QUESTION #2

Is my data unique?

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In this question, the word “unique” can be replaced with “valuable”.  But consider a more pointed question: “Is my data valuable to systematic or ‘quant’ investors”? This community represents the vast majority of data consumers (people who will pay for insights) in the Alternative Data ecosystem. The good news is that there are specific and detailed considerations that will give clear guidance as to whether your data is unique, and by proxy valuable. If you’d like to review these considerations, download our guide on “What makes data valuable to systematic investors” using the form on this page.

QUESTION #3

How much money can I make?

This is why we’re all here. If you are comfortable with the idea of safely monetizing your data, and you’ve determined there is potential value to data consumers, the next question is how much value? This question requires a good amount of diligence to correctly answer. The good news is that your data’s value can and should be determined before any significant investments are made to activate monetization programs. If you are working with someone who can’t, or won’t, help you do the legwork to estimate the monetary potential, you should be looking for different partners.

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1-3 months

Our experience tells us that a timeframe of 1-3 months is standard to get empirical evidence of your data’s value. But don’t be alarmed! It’s a reasonable investment to uncover a new, extremely high margin product line for your business.

QUESTION #4

Why is LeapYear involved?

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Working with sensitive data is not trivial. The right combination of capability to monetize data and meet a clients’ risk tolerance has historically proven hard to implement. Most approaches either significantly devalue your data, expose you to risk, or both. The risks are real. No amount of incremental revenue is worth landing in the headlines or losing customers due to privacy or regulatory infringement. Our customers bring us into their monetization efforts to ensure highest possible value capture with lowest possible risk. LeapYear’s Data Monetization Solution, based on our patented privacy algorithms, is transforming how sensitive data is shared with the Alternative Data market.

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Learn More

Please download our guide on “What makes data valuable to systematic investors?” to learn more.

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