Data Broker Job Description: What Does a Data Broker Do?

Data brokers, also known as information brokers, are in the business of collecting, aggregating, and selling personal data. They operate largely behind the scenes, amassing vast datasets containing consumer information ranging from basic demographics to online browsing habits, purchase history, and even more sensitive data points. This data can then be sold to other businesses for marketing, risk assessment, background checks, and various other purposes.

Here are some key activities of a data broker:

• Data Collection: Data brokers acquire data from various sources: public records (property records, court filings), data purchased from other organizations (like credit card or loyalty card companies), social media activity, web browsing behavior, and even data generated from smartphone apps.
• Data Aggregation and Organization: Raw data is often messy and unstructured. Data brokers invest in cleaning, standardizing, and organizing the information they collect, making it more usable for their clients.
• Data Analysis: Some data brokers offer basic analysis services. This might involve segmenting their data based on demographics, purchasing habits, or other criteria as per their clients' requests.
• Data Licensing: Data brokers generate revenue by selling or licensing access to their datasets. Clients often purchase 'packages' of data targeted toward specific audiences or use cases.

An Important Note: The field of data brokerage raises significant ethical concerns related to individual privacy. It's crucial for anyone considering this career path to thoroughly understand privacy regulations, prioritize ethical data practices, and operate with transparency.

Am I Suited for a Role as a Data Broker?

A career as a data broker is appealing to those with a strong entrepreneurial streak and who excel in data-driven environments. Here are some traits to consider:

• Business Acumen: More than just collecting data, success as a data broker relies on understanding market needs and identifying ways to monetize your datasets.
• Analytical Skills: Analyzing potential data sources, assessing their value, and understanding trends within data are crucial for successful data brokering.
• Tech Savvy: Comfort with various technologies for data collection, storage, and analysis is essential. Data brokers often utilize a range of tools and databases.
• Networking and Sales Skills: Building relationships with data suppliers and potential buyers is often key to growing your data brokerage business.
• Understanding of Privacy Regulations: It's crucial to stay updated on data privacy laws and regulations, operate your business in ways that comply with the law, and prioritize ethical data collection and use.

Environment & Typical Day

Data brokers can work in various settings. Some operate their own data brokerage firms, while others might work in data science, marketing analytics, or market research companies that collect and sell data as a part of their business model. Work can be remote or office-based depending on the company.

A typical day for a data broker might involve:

• Sourcing New Data: Researching potential data sources, contacting public record custodians, assessing the quality and feasibility of acquiring new datasets, and negotiating with other organizations for data access.
• Data Processing and Cleaning: Using technical tools to clean, organize, and transform raw data into usable and structured formats suitable for analysis and sale.
• Market Research: Identifying potential customer segments, analyzing industry trends, and developing strategies to market different datasets to relevant clients.
• Client Communication: Consulting with clients to understand their data needs, demonstrating the value of various datasets, and negotiating agreements for data licensing or custom data analysis.
• Maintaining Data Security: Implementing protocols for secure data storage, data anonymization (where applicable), and ensuring compliance with data privacy regulations.

What are the Wages and Benefits?

Income for data brokers can vary significantly depending on the size of their operation, the type and value of data they collect, their niche within the market, and their success in finding clients.

• Salary: Data brokers who work for established firms may receive a base salary along with commissions or bonuses based on their ability to bring in new clients or sell additional datasets. It's more difficult to estimate an average salary range due to the factors mentioned above. On ZipRecruiter, it’s not uncommon to see a wide range of starting salaries, ranging from $30,000 to $130,000.
• Self-Employed Data Brokers: Those who start their own data brokerage firms have the potential for higher earning potential. However, this is also linked to entrepreneurial risks and the challenges of business development.
• Benefits: Benefits packages can vary depending on whether a data broker is employed by a larger organization or is self-employed. Standard benefits might include:
• Health and dental insurance
• Retirement plans with potential employer matching
• Paid vacation and sick time (more likely if employed by an established company)

What is the Job Outlook?

The outlook for data brokers is mixed and complex. Here's why:

• Demand for Data is High: Businesses and organizations across industries continue to rely on data for targeted marketing, risk assessment, and decision-making. This fuels the demand for the services provided by data brokers.
• Growing Public Awareness of Privacy Concerns: Public scrutiny of data collection practices is increasing. This awareness can make individuals more hesitant to have their data collected and sold.
• Increasingly Stringent Regulations: Data privacy laws and regulations like GDPR (EU) and the California Consumer Privacy Act (CCPA) are becoming more stringent, imposing restrictions and requirements on data brokers.
• Evolving Technology: New technologies for data privacy and control (e.g., decentralized identifiers) could potentially disrupt the traditional data broker model.

How Do I Become a Data Broker?

There is no single prescribed path to becoming a data broker. Here are some potential routes, with an emphasis on the technical and legal knowledge required:

• Education:
• No Specific Degree: There's no specific "data broker degree." However, majors in computer science, business, marketing, or data analytics can provide a relevant foundation.
• Data Privacy Law: Courses or workshops focused on data privacy laws are strongly recommended, and may even be required in some jurisdictions to operate a data brokerage legally and ethically.
• Technical Skills:
• Database Management: Proficiency with database systems is essential for managing large datasets.
• Data Cleaning and Processing: Familiarity with data cleaning tools and techniques.
• Programming: Coding skills (e.g., Python), especially for web scraping and data extraction, can be valuable.
• Business and Sales Skills:
• Market Research: Understanding how to identify potential clients and their data needs.
• Networking: Building relationships with both data suppliers and prospective buyers.
• Sales and Negotiation: Demonstrating the value of your data and securing agreements with clients.
• Understanding Ethical Concerns: Deep knowledge about data privacy, responsible data practices, and methods to mitigate ethical risks are crucial for any prospective data broker.

Important Considerations:

• Start-up Costs: There can be significant start-up costs if you're establishing your own data brokerage. This includes technology infrastructure, data acquisition costs, legal fees, and marketing.
• Regulation Compliance: Ensure you have a thorough understanding of all relevant data privacy laws in your jurisdiction and operate strictly within legal boundaries. Failure to do so can have serious legal and financial ramifications.
• Public Perception: Be aware that the data brokerage industry can have a negative public perception due to privacy concerns. You need to be prepared to prioritize transparency, ethical practices, and possibly address these concerns with your clients.

Where Would I Work?

Data brokers can find employment in a variety of settings. Here are some of the most common:

How Do I Find a Job?

Finding a data broker job requires initiative and utilizing various resources. Here are some effective strategies:

• Job Boards: Major online job boards like Indeed, Monster, LinkedIn list data broker openings Use relevant keywords in your searches, like "data broker," "data aggregator," or "data licensing," and tailor your resume to match the specific requirements of each position.
• Industry Networking: Connect with data brokers and professionals in related fields (data science, market research) through online platforms like LinkedIn. Attend industry conferences and events to build connections and learn about potential job opportunities.
• Company Websites: Research companies you're interested in working for, particularly data brokerage firms or data-driven marketing agencies. Explore their careers pages and apply for any open data broker positions.
• Data Privacy Associations: Some data privacy organizations offer job boards or resources specifically for data-related careers. Look for positions that align with your skills and interests within the data broker domain.

Applying for a Job

The application process typically involves submitting a resume and cover letter, followed by interviews. Here's how to make a strong impression:

• Tailored Resume and Cover Letter: Generic applications won't suffice. Highlight your skills in data collection, analysis, data management (if applicable), and any experience with data privacy regulations. Emphasize your understanding of the data broker industry and your ability to identify valuable data sources and client needs.
• Technical Skills: Showcase your proficiency in database management systems, data cleaning tools, and any programming languages relevant to data extraction (e.g., Python for web scraping).
• Business Acumen: Demonstrate your understanding of market research principles and your ability to identify and target specific customer segments for data products.
• Ethical Considerations: Be prepared to discuss your approach to ethical data collection and responsible data practices. This shows potential employers you understand the sensitive nature of this field.

Where Can This Job Lead?

A career in data broking can lead to various career paths depending on your interests and goals. Here are some potential trajectories:

• Data Analyst: With experience and additional technical skills, you could transition into data analysis roles, focusing on extracting insights from the data you collect or manage.
• Data Privacy Specialist: Your understanding of data privacy regulations can lead to careers focused on data governance, compliance, and ensuring responsible data practices within an organization.
• Marketing Analytics: Data brokers with a strong understanding of consumer behavior can find opportunities in marketing analytics, helping businesses leverage data for targeted marketing campaigns and customer insights.
• Data Entrepreneur: For the highly ambitious, you could leverage your experience and knowledge to launch your own data-driven business venture, potentially beyond the traditional data brokerage model.

The data broker field is constantly evolving, with an increasing focus on data privacy and ethical considerations. If you are a keen problem solver with a strong interest in data and the ability to navigate complex legal and ethical landscapes, a career in data broking could be a viable option. However, it's crucial to approach this career path with a commitment to responsible data practices and ensure you comply with all relevant data privacy regulations.