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> I'm sure it is very context dependent, but I'm very interested. For example, let's say you have information that allows you to forecast the earnings of a publ
by dsacco 9y ago
> I'm sure it is very context dependent, but I'm very interested. For example, let's say you have information that allows you to forecast the earnings of a publicly traded company to within 1% MoE; for how much could you sell this information (either one time, or periodically) to a financial company?
It is context dependent, but I can give a basic idea. In the example you've given, high four figures per customer per quarter, assuming you just give them a deliverable report once a month and the data is turnkey enough that many customers (30 - 40) can "subscribe" to it. For a fund that wants something more boutique, like exclusivity or a specific company, five figures becomes the floor.
The nature of the business is significant upfront work (setup of data collection and analysis model) followed by infrequent tweaks going forward. Lucrative data on a single hot company could be sold for mid - high six figures per year with very high profit margin for as long as the data is available and the analysis model is both functional and interesting (i.e. delivers an insight not already priced into the market).
- opportune 9y agoHow do you approach a customer once you have the data? I imagine you will build a relationship with your customers eventually, but when you're just getting started, do you just ask a potential customer via mail/email/phone if they want to meet and discuss your data of company X? I'm also curious as to the level of "polish" that you are expected to provide. Let's say you know how many widgets Acme sold this last quarter. Is that by itself enough information, or would you need to calculate projected expenses / other stuff to actually be able to deliver an earnings estimate? What if you just had projected revenue? Thank you!