23 Nov 2020

How to Monetize Data Networks: Focus on Acquisition and Usage

Data Network Monetization


Data networks are unique within the world of network effects. Most network types create value by allowing participants to interact with each other in some way. Data networks, however, do not connect participants directly. Instead, they crowdsource data from participants to improve the product for all of them. This has a direct impact on the way they monetize. For one, it automatically invalidates one of the monetization models used by other networks — interaction taxes (or commissions). Since there are no direct interactions between participants, they cannot be taxed. So data networks are left with five of the six monetization models I have previously listed

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