How To Monetize The Data You’re Already Collecting

When one of our favorite social media startups came to us with a question, we knew we were in for something fun.

We’ve worked closely with them for a while—they’re friends as much as they are clients—and they were in a great spot: solid traction, a growing user base, and tons of engagement. But like a lot of startups in that phase, they were starting to wonder: What else can we do with all this data? Could it actually be its own revenue stream?

The answer: absolutely and it didn’t mean pivoting or taking their eye off the ball.

We helped them explore two options:

1. working with a third-party data company to license their data
2. using that same dataset to power a brand-new, adjacent product

Both were solid routes with real upside and best of all, both could be done without pulling focus from the core business.

If you’re sitting on a pile of user data and wondering what’s possible, this post will walk you through how to think about monetizing it and where to start.

Why Your Data Is More Valuable Than You Think

Whether you’re running a SaaS platform, a consumer app, or a marketplace, you’re almost definitely collecting user data. Most founders know that info is valuable for improving UX or guiding product decisions. But here’s the thing: that data might also be valuable to other people outside your company.

There are plenty of players—data brokers, AI companies, research firms, even Fortune 500 brands—who would love access to niche, hard-to-get datasets, especially continuous ones.

So start by asking yourself: Is the data being collected consistently over time? Is it clean, anonymized, and ethically sourced? And would someone else find value in this specific audience or behavior? If the answer is yes, your data might be a hidden asset waiting to be activated.

Two Ways Founders Can Repurpose Their Data

There are two solid, proven ways startups can turn their data into dollars.

The first is licensing your data to a third party. This is often the fastest and easiest path—especially if you’re trying to stay focused on your core product.

You can work with a data company that specializes in buying and distributing niche datasets. 

We’ve helped founders structure deals like this through our network. It’s a way to let your data work quietly in the background while you keep building. As long as your data meets basic thresholds—volume, quality, and compliance—it could be exactly what another company is looking for.

This is exactly the kind of work we’ve done with many founders. We help them evaluate the market, assess the quality and usability of their data, and ultimately identify the most strategic monetization paths. In these cases, it’s not just about selling the data—it’s about understanding its full potential and using it to create new, sustainable revenue streams without compromising focus or user trust.

Once ready, we introduce them to our partner, InitialDataOffering.com, which is a platform that allows for your exposure to be discovered if you are selling data, as they allow data sellers to announce to the data community for free.

The second path is to build something new. That’s what our friends at the social media company did. Their original product was thriving, but the engagement data they had collected opened the door to something entirely new: a lightweight LLM model that is trained on hyper specific demographic data of their target audience, used by that same audience to replace generalized AI chatbots.

This wasn’t a pivot; it was a smart, adjacent expansion powered by data they already had. If you’re thinking about platform expansion or exploring how to increase the lifetime value of what you’ve built, this might be your move.

How To Stay Focused While Monetizing Data

A lot of founders hesitate here because they don’t want to dilute their focus. We get it! Chasing shiny objects is a real risk, but data monetization doesn’t have to be a distraction. Done right, it’s just another line of business—with its own owner, lightweight strategy, and a clear go/no-go framework.

We often recommend treating it like a mini product experiment. You might run a short discovery sprint to gauge market demand, build a quick prototype to test interest, or partner with a third party to vet or broker the opportunity. The key is to keep the process lean and aligned with your existing goals.

Cover Your Bases: Compliance & Ethics Still Matter

Before doing anything with your data, it’s critical to make sure it’s ready for prime time. This is one area where we recommend a checklist approach:

• Confirm that you obtained proper user consent
• Remove or anonymize any personally identifiable info
• Review your privacy policy and terms of service to ensure you’re covered

If your data isn’t quite there, that’s OK, just make sure you address those gaps before moving forward. Buyers and partners will definitely ask and a quick audit now can save you time and protect your reputation later.

Your Data Is Working Hard; Make It Work Smarter

Your product is valuable. Your data might be even more so.

Whether you license it, build something new, or just explore what’s possible, monetizing your data can help you extend your runway, diversify your revenue (particularly helpful in this volatile economy) and build relationships with partners you might never have considered.

Curious what your options are? Schedule a call with our team. We’ll walk you through what makes your data attractive, how to position it, and what’s realistic based on where you are.

You’ve already done the hard part, now let’s help your data do the rest.