If you love research and are looking to turn your ability to gather information
into a business, you may want to start a business as an information broker. Also
called information professional, desktop online searcher or information
retriever, this kind of business will allow you to serve both businesses and
individuals that needed assistance in looking for specific information.
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Businesses consider information a strategic resource that is essential to
help them stay on top of changes, new concepts, competition and other operations
of their business. Even ordinary folks have demands for specific information,
such as their genealogy. Given the demand for information, the book "Start
Your Own Information Broker" edited by Susan Rachmeler states that
"there has never been a better time to start a business that capitalizes on
your ability and interest in researching pertinent information for individuals,
special interest groups and major corporations."
An information broker tracks down and locates the specific information a
business, organization or client needs. If you engage in this business, your
task is to find, organize, analyze and package information in a way that makes
it meaningful and relevant to a client.
You may specialize in certain types of information, such as market research,
law, statistics, real estate research or scientific data. A partial list of some
of the research projects that require the services of an information broker
include:
- To do background research about a new product concept;
- To carry out a patent search on a product they want to introduce;
- To learn about companies producing related products and determine their
pricing or find out as much as possible about a new market.
- To research about client' competitors in their industries.
- To conduct real estate title searches, as well as information about
original cost, annual tax liability relating to specific parcels of
land
- To find financial data and survey results pertaining to public relations
and advertising
- To conduct legal research, such as details of similar cases the lawyer is
working on
- To assist hospitals and medical associations in their medical research,
such as obtaining new information on the latest surgical techniques and data
on new drugs
- To assist academics and students collecting information for writing or
research projects
- To help people trace their family histories through extensive records that
are available through certain databases
Start-Up
Costs
An information broker business, while labor intensive, offers strong income
potential and high-income growth. This business can be started for as low as
$5,000 or as high as $20,000, depending on your range of services, equipment and
data sources. Your initial expenses will be on office equipment and supplies,
including computers, printer, fax machine, scanner, telephone systems, Internet
access and office furniture.
A significant part of expenses will be for subscription fees to computer
databases, majority of which are online. These databases, such as Lexis-Nexis
and WestLaw, contain abstracts or the 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.
Given the cost of accessing databases, some of which charges for an hourly
rate, you must familiarize yourself and be proficient at using these databases
to enable you to perform your searches in the least amount of time at a minimum
cost to your client.
If you will be working from home, your start-up costs can be minimal. The key
is to limit your initial expenses and purchase equipment and other purchases as
your business needs it. Always shop around for the best prices for any equipment
buy.
Pricing
 According to the book "Start Your Own Information Broker" edited by
Susan Rachmeler, this business offers a tremendous potential for profits, and
you can "easily expect to realize gross profits of $35,000 to $70,000 your
first year."
You can charge by the hour or by the job. Going rates vary from $25 to $100
per or more per hour, depending on the type of research involved, your
established reputation and the going market rate. If you price by the job, you
need to estimate the number of hours the job will take, the resources you will
need to find the information, costs of information and allowances for
difficulties in searching for the information. You can either bill direct costs
such as photocopying and printing articles either at cost or marked up by 15 or
20 percent.
If you get to work for 500 hours in a year at $35, you can expect to earn
$17,500 in one year. However, if you work more at a higher rate of $100 per
hour, then you can turn this into a very lucrative business earning about
$100,000 a year.
Operating
and Marketing an Information Broker Business
As an information broker, you will find yourself working on regular business
hours. However, be prepared to work on weekends or even long hours particularly
if you are facing deadlines and need to submit results to clients at specific
timetables.
Paul and Sarah Edwards, in their book "The Best Home-Based Businesses
for the 21st Century" state that obtaining clients is the greatest
challenge of this business, "thus you can expect to spend a lot of effort
and time marketing to establish a client base." In the beginning, expect to
spend about 50% of your time marketing your business, while the rest of the time
is spent doing the research work. As the number of clients increase, expect to
spend a greater percentage of your time on researching and finding data for
clients.
Specialization is the key to succeeding in this business. In the beginning,
you need to specialize in one or two fields. Find an area where you are most
knowledgeable and capable. If you have a law background, you might begin by
specializing in some kind of law or general business research. This will allow
you to become proficient at using a small number of databases, thereby allowing
a focused marketing effort and increasing your reputation for successful
searches at a low cost. As your business grows, you can expand your focus as
your confidence and reputation in the industry grows.
In marketing this business, the first step is to identify the players in your
specialized field. Join trade associations and professional organizations. The
key is to network extensively and establish personal contacts. You can also
reach your potential clients through direct mailing and setting up of follow-up
sales appointments.
You may also wish to work on establishing your reputation in the industry.
You can do this by writing articles in the local newspaper, starting your own
newsletter, and speaking and presenting on information seminars at meetings and
trade shows. With the consent of your clients, you may write an article about
the discoveries of a recently completed project. You may also want to create a
Web site that will list your areas of expertise. Be sure to include testimonials
from satisfied clients.
Resources:
If you want more information, you can check out these resources:
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