Before You Sell Your Data, Read This

When I sent out my most recent newsletter about how to monetize the data you’re already gathering, a bunch of founders reached out with a follow-up question: “Okay, but what about data privacy?” 

That’s the right question to be asking.

Selling or repurposing data isn’t just a legal issue; it’s a trust issue. And if you don’t handle it carefully, you risk losing both your customers and your reputation, even if you’re technically within the rules.

We see this all the time. Startups get excited (rightfully!) about the idea of monetizing data. But they forget that just because you can doesn’t mean you should. The real question is: Can you do it ethically and responsibly?

Let’s talk about how to answer that.

Understand Consent and Compliance

Let’s get this out of the way: if your users haven’t consented to their data being used in a specific way, don’t use it that way.

Yes, the legal landscape can be complex and, yes, there are gray areas. But in our experience, the companies that get this right ask three things:

• Did users know what data was being collected?

• Did they agree to how it would be used?

• Can we explain this clearly if challenged?

And if the answer to any of those is "I’m not sure," then it’s time to review your privacy policy and consent flows. Clean, compliant, and clearly communicated data practices aren’t just nice to have, they’re a baseline. 

Being ethical about your data doesn’t mean leaving money on the table. It means building long-term value in a way that doesn’t backfire later.

In fact, some of the most interesting data monetization plays we've seen—like helping clients repackage anonymized trend reports or develop internal tools they can later white-label—only exist because they started from an ethical foundation. And it’s a great way to create another revenue stream in this volatile economy! 

If you're trying to think about how to use your data well, start here:

• Focus on insights, not individuals

• Make sure it’s accurate and useful

• Stay on the right side of consent and transparency

Your data has value. But only if you use it right.