# What is Data monetization? > Data monetization is turning data and analytics into financial returns. This can happen directly, by selling or licensing data or information products, or indirectly, by using data to improve operations or make products more valuable. Source: https://sellmydata.com/glossary/data-monetization/ Published: 2026-10-29 ## Definitions and approaches MIT CISR describes data monetization as ["the direct or indirect conversion of data and analytics into financial returns,"](https://cisr.mit.edu/publication/2019_1101_DataMonCapsPersist_WixomFarrell_Audio) and names [three approaches](https://cisr.mit.edu/publication/MIT_CISRwp437_DataMonetizationSurveyReport_Wixom): - **Improving processes:** using data to improve how the business runs. - **Wrapping products:** adding analytics features and experiences to existing products. - **Selling information solutions:** offering information products to others. That said, there is no single agreed definition. When MIT CISR [interviewed nearly sixty executives working on data monetization, it extracted about sixty unique definitions](https://cisr.mit.edu/publication/2014_0801_DataMonetization_Wixom). The same research offers a longer version: "the act of exchanging information-based products and services for legal tender or something of perceived equivalent value." An MIT Press book (September 2023) argues that most organizations see the term [too narrowly, as merely selling data sets](https://learn.mit.edu/podcast/14587/podcast_episode/14607/data-is-everybody-s-business-from-chapter-1-what-is-data). ## Where privacy rules come in Privacy rules come in when the data being monetized is about people: regulators such as the UK ICO and US FTC look at whether individuals can be identified and whether consumers were told how their data is used. The ICO says [pseudonymous information is still personal data](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/anonymisation/introduction-to-anonymisation/) and the law applies to it, and that removing names and addresses may still leave enough detail to re-identify people. Whether data counts as personal or anonymous is, in its view, [the outcome of assessing identifiability risk](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/anonymisation/how-do-we-ensure-anonymisation-is-effective/) against the relevant facts. In the US, FTC staff wrote in February 2024 that it may be unfair or deceptive for a company to [adopt more permissive data practices, such as starting to share consumers' data with third parties or using it for AI training, and inform consumers only through a surreptitious, retroactive amendment to its terms of service or privacy policy](https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2024/02/ai-other-companies-quietly-changing-your-terms-service-could-be-unfair-or-deceptive). Rules differ by jurisdiction and data type. This is general information; which rules apply to a given dataset is a question for counsel. ## An example A software company with years of support tickets could use all three approaches: study them to spot recurring problems, add a ticket-analytics dashboard to its product, or license a de-identified copy as [AI training data](/glossary/ai-training-data/). MIT CISR wrote in 2026 that [AI has made data monetization even more important](https://cisr.mit.edu/publication/2026_0701_DataMonetization_VanderMeulenWixomBeathDataBoard). ## Why it matters to a company selling data For a company selling data, the price is hard to pin down, and the rules on how the data can be shared and used matter a great deal. The OECD says attempts to measure the [value of data](/glossary/data-valuation/) [remain underdeveloped](https://www.oecd.org/en/publications/perspectives-on-the-value-of-data-and-data-flows_a2216bc1-en.html), and that value depends to a large extent on the [data governance framework](https://www.oecd.org/en/publications/measuring-the-value-of-data-and-data-flows_923230a6-en.html) that determines how data can be created, shared and used. So before licensing company data to AI labs, two steps come first: confirming the company has the rights to license it, and de-identifying it, which NIST describes as [removing the association between identifying data and the person it describes](https://csrc.nist.gov/pubs/sp/800/188/final). SellMyData runs a [rights check](https://sellmydata.com/rights/) with each company before anything is listed, and replaces people's names, contact details and identifiers with consistent placeholders; its [de-identification](/glossary/de-identification/) page sets out what is removed and the limits ([details](https://sellmydata.com/de-identification/)). Nothing is licensed without the seller's sign-off on the buyer, the terms and the price ([trust](https://sellmydata.com/trust/)). Sellers pay nothing up front, and a commission is taken only when a sale closes ([pricing](https://sellmydata.com/pricing/)). A company can [request an estimate](https://sellmydata.com/) or [book a 30-minute call with the founder](https://sellmydata.com/book/); neither commits it to anything. ## Frequently asked questions ### What is data monetization? Data monetization is turning data and analytics into financial returns, directly or indirectly (MIT CISR's definition). That covers everything from using data to improve how a business runs to selling or licensing information products. ### Is data monetization the same as selling data? Not exactly. Selling or licensing data is one form of it, but MIT CISR also counts improving processes with data and adding analytics features to products. An MIT Press book argues most organizations view the term too narrowly, as merely selling data sets. ### Is it legal to monetize customer data? It depends on the data, the contracts and the laws that apply. The UK regulator says pseudonymous data is still personal data, and FTC staff have warned against adopting more permissive data practices, such as sharing consumers' data or using it for AI training, and announcing them only through a surreptitious, retroactive change to privacy terms. SellMyData does not buy consumer personal data, health records tied to people, or payment card data ([details](https://sellmydata.com/sell-my-data/)). This is general information, not legal advice, so check your situation with counsel. ### Does data monetization only apply to large companies? No. The MIT CISR definitions above say nothing about company size. On SellMyData there is no minimum headcount, and price depends on data type, volume, years of history and current lab demand ([pricing](https://sellmydata.com/pricing/)). ## Sources - [Research briefing on data monetization (Wixom, 2014)](https://cisr.mit.edu/publication/2014_0801_DataMonetization_Wixom) - [Research briefing on data monetization capabilities (Wixom and Farrell, 2019)](https://cisr.mit.edu/publication/2019_1101_DataMonCapsPersist_WixomFarrell_Audio) - [Data monetization survey report (Wixom)](https://cisr.mit.edu/publication/MIT_CISRwp437_DataMonetizationSurveyReport_Wixom) - [Data Is Everybody's Business, Chapter 1: What Is Data (MIT Press book excerpt, September 2023)](https://learn.mit.edu/podcast/14587/podcast_episode/14607/data-is-everybody-s-business-from-chapter-1-what-is-data) - [Research on data monetization (Van der Meulen, Wixom, Beath and MIT CISR Data Board, 2026)](https://cisr.mit.edu/publication/2026_0701_DataMonetization_VanderMeulenWixomBeathDataBoard) - [AI (and other) Companies: Quietly Changing Your Terms of Service Could Be Unfair or Deceptive](https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2024/02/ai-other-companies-quietly-changing-your-terms-service-could-be-unfair-or-deceptive) - [Measuring the Value of Data and Data Flows](https://www.oecd.org/en/publications/measuring-the-value-of-data-and-data-flows_923230a6-en.html) - [Perspectives on the Value of Data and Data Flows](https://www.oecd.org/en/publications/perspectives-on-the-value-of-data-and-data-flows_a2216bc1-en.html) - [Introduction to anonymisation](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/anonymisation/introduction-to-anonymisation/) - [How do we ensure anonymisation is effective?](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/anonymisation/how-do-we-ensure-anonymisation-is-effective/) - [NIST SP 800-188: De-Identifying Government Data Sets](https://csrc.nist.gov/pubs/sp/800/188/final)