Become an Information Broker
The information broker business has been growing in recent years on account of the realization that information
is a strategic resource that can helps businesses stay on top.
People use information brokers:
- To do background research on new products or concepts;
- To carry out patent search on products they want to introduce;
- To learn about companies producing related products and their pricing;
- To assess new markets;
- To research their competitors' business methods;
- To search real estate titles, original cost, annual tax liability;
- To study public relations and advertising reports;
- To conduct legal research;
- To assist academics and students collect information;
- To help people trace their family histories;
Skills and working hours
The job of an information broker is to track down specific information required by a
business, organization or client and then organize, analyze and package this information for easy understanding.
This requires two different kinds of skills. The first is to obtain information; the second is to analyze this
information. Both are specialized operations and the persons most suited to run information broker business are
management students who can analyze data.
Information brokers usually work during regular business hours but at times they have to keep long hours especially
they are nearing deadlines. In the beginning, you should restrict your research to one or two fields only in which
you are most knowledgeable and capable. This will help you to become proficient at using a number of databases. This
will give you more time to focus on marketing your information broker business. You can expand your focus as your
confidence and reputation grows.
Start-Up Costs
An information broker business requires lots of hard work but it offers avenues for strong income growth.
The start-up costs for this business can be as low as $5,000 or as high as $20,000, depending on the range of services,
equipment and data sources. The initial expenses will be on office equipment and supplies including computers, printer,
fax machine, scanner, telephone systems, Internet access and office furniture.
You will also be required to invest on computer databases, like Lexis-Nexis and WestLaw, which contain abstracts or full
text of articles from thousands of publications around the world including major newspapers, magazines, newsletters,
public records, court dockets, Congressional bills, and a lot more. Some of these databases charge on an hourly basis.
You must therefore be proficient at using these databases and perform your searches in the least amount of time at the
minimum cost to your client. Working from home will help you keep your start-up costs low. You should try to limit your
initial expenses and invest on other requirements only when your business grows. This includes hiring employees to assist
you in your information broker business.
Pricing
Your gross profits in the first year itself can easily range from $35,000 to $70,000. You may charge hourly
rates ($25 to $100 per hour) or rates per completed job. You can fix the rates based on the type and amount of research
involved, your own reputation and established market prices. When you charge by the job, you should estimate the number
of hours the job will take and the resources you will need. You can charge separately for costs like photocopying or
photographs separately or build it into your basic cost.
Marketing
It takes time to build an information broker business. You should join trade associations and professional
organizations to familiarize yourself with the market and identify potential customers. You should also establish personal
contacts and build your image by writing articles in the local newspapers, running your own newsletter, and speaking at
information seminars, meetings and trade shows. Your business pitch must include testimonials from satisfied clients.
|
