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To monetize data sets, you need to understand that the data is least valuable in its raw form. And when you process it correctly, you're adding value. The better you do the processing, the more valuable the data insights.
For example, how useful is the stock price data? Not much. But how valuable is the insight into which stock will go up or down in price? A LOTBillions (at least). So to monetize a data set, you first need to make it valuable.
The specific data monetization examples are explained on this link. But, in short, you take the valuable data and package it in an API. Then you use the API marketplace platform to set the API pricing, and you're done.
Later in this article, we will discuss which marketplace to use and how to easily create your database with APIs in just a few clicks. But first, let's cover the basics.
The first thing you can do with open data is to put it all together in a single format and expose it through API. Even though there are loads of open data on sites like Data.gov, the data is usually splintered across many files.
So the data is there, but it is in different shapes and formats. So finding quality information takes a lot of time and energy. And if you plan on monetizing the data, your first task would be to clean it up and organize it.
And this is where the added value comes from, which you can charge money for.
The Data.gov website has different types of location data: population data, housing data, etc. And if you can detect internal migration and overlay it with construction patterns, you can predict future housing prices. And this is just one of the examples.
Because if you see that some area is getting higher population growth than the speed of housing construction, you might be onto something. TheObviously, the demand for houses and apartments will be higher than the supply, which will cause the prices to rise.
And who would benefit from such data? Real-estate agents, construction companies, and also people who are migrating. Because if they knew their living costs would go up, they might choose another location to move to.
Another helpful thing is to know the number of available jobs per number of unemployed people for a specific location. This would give people on the move valuable info on where to go. And also, it would inform them about areas with higher or lower job competition.
The possibilities are endless, but all of the possibilities start and end with you putting yourself in your customer's shoes. And no data processing is more important than that.
Big data monetization is very similar to the situation with location data. All data in its raw form isn't very valuable. But if you can pull helpful and actionable information out of it - you're in business.
You'll probably need more sophisticated methods from your data science toolbox to do that.
One of the ways to make money with data science is to get predictions from the data. Then package those predictions into an API and sell them on the API marketplace. This is explained in more detail in the API business ideas article.
However, the most important thing is not to get lost in the data and numbers. Instead, focus primarily on potential consumers of this data. How is their life easier because of your API? Why is it valuable to them? Would you pay for this data yourself if you were in their position?
This is the most important and exciting part of an entire journey: monetization of the data sets. Let's say you processed a bunch of data and organized it properly. Then you pulled some fascinating insights and conclusions out of it. Now what?
Now you need to build a database and expose the data through APIs. Usually, this is a very long and challenging task. But in this case, there is a shortcut.
Luckily, today, some tools can do all this for you. Tools that were hard to imagine 5-10 years ago. And these tools allow you to build full-fledged production-ready databases in just a few clicks.
Sounds too good to be true? Well… it gets even better.
Not only that, but after you create a database table through a simple graphical interface, all the API endpoints are automatically created for you. And the database is automatically scalable, so it works from one to a million users (and beyond). It grows alongside your business effortlessly without any additional configuration.
Remarkably, these kinds of tools exist today. And if you want to try out one of them (for free), check out the 8base platform. All that is left for you is to upload the data, and the API part is done.
Now, you have to find a way to monetize this API. This is not very difficult because API marketplaces already exist. They make it easy to connect your API with their marketplace. No coding is required either. You can set your pricing, and they handle the rest.
The biggest API marketplace is RapidAPI, so you can try it out. And after you set up this last component, your data set monetization process is complete.
To recap all the steps: