Data Brokers Guide What is a data broker?
Foundation Guide

What is a
data broker?

Simple Definition

A data broker is a company that collects personal information about consumers from various sources, then sells or licenses that data to other businesses for marketing, research, or verification purposes.

4,000+ Companies

Active data brokers worldwide

$200B Industry

Annual market value

Every Consumer

Has data in broker databases

5,000+ Data Points

Per person on average

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Deep Dive

Understanding Data Brokers

Data brokers operate as invisible middlemen in the digital economy, collecting and selling personal information on a massive scale.

Complete Definition

Data brokers are companies that specialize in collecting, aggregating, and analyzing personal information about individuals from multiple sources. They create detailed profiles of consumers and sell this information to other businesses for various purposes including marketing, risk assessment, fraud prevention, and background checks.

Unlike companies you directly interact with (like social media platforms or retailers), data brokers typically collect information about you without your direct knowledge or consent, operating largely behind the scenes in the digital economy.

How Data Brokers Operate

1. Data Collection

Gather information from public records, websites, apps, surveys, loyalty programs, and purchase transactions across multiple sources.

2. Data Processing

Clean, organize, and combine data from different sources to create comprehensive profiles with demographics, behaviors, and preferences.

3. Data Sales

License or sell processed data to marketers, advertisers, employers, landlords, and other businesses for targeted campaigns and decisions.

What Data Do They Collect?

Data brokers collect an extensive range of personal information, creating detailed digital profiles of virtually every consumer.

Personal Details

  • • Full name & aliases
  • • Age & birth date
  • • Address history
  • • Phone numbers
  • • Email addresses

Financial Data

  • • Income estimates
  • • Credit information
  • • Property ownership
  • • Investment data
  • • Purchase history

Behavioral Data

  • • Online activity
  • • Shopping habits
  • • App usage
  • • Location data
  • • Social media activity

Lifestyle Info

  • • Interests & hobbies
  • • Health conditions
  • • Family details
  • • Education level
  • • Political views

Where Do They Get Your Data?

Public Sources

  • Government Records

    Voter registrations, property records, court filings

  • Social Media

    Public posts, profiles, check-ins, connections

  • Online Directories

    Phone books, business listings, professional networks

Private Sources

  • Retail Partners

    Purchase data from stores, loyalty programs

  • Website Tracking

    Cookies, pixels, browsing behavior

  • Surveys & Contests

    Information voluntarily provided for rewards

Real-World Example

Acxiom, one of the largest data brokers, maintains profiles on over 2.5 billion people worldwide. They collect data from over 7,000 sources and can predict consumer behavior with remarkable accuracy. For example, they might know:

  • You're likely to buy a car in the next 6 months
  • Your preferred shopping times and locations
  • Your estimated household income range
  • Your political leanings and interests
Data Marketplace

Who Buys Your Data?

Data brokers sell personal information to a wide range of industries and organizations, each with different motivations and use cases.

Marketers & Advertisers

Largest Buyers • 60% of Market

Targeted Advertising

Show relevant ads based on interests and behavior

Audience Segmentation

Group consumers by demographics and preferences

Direct Mail Campaigns

Send physical mail to likely customers

Example: A car dealership buys data on people likely to purchase vehicles in the next 6 months

Financial Services

Risk Assessment • 20% of Market

Credit Decisions

Assess creditworthiness for loans and cards

Fraud Prevention

Identify suspicious activities and patterns

Investment Targeting

Offer appropriate financial products

Example: Banks use data to pre-approve credit card offers for qualified consumers

Employers

Background Checks • 10% of Market

Background Screening

Verify employment and education history

Character Assessment

Evaluate social media and online presence

Legal Compliance

Check for criminal records and violations

Example: Companies screen job candidates using comprehensive background data

Real Estate & Insurance

Risk Evaluation • 10% of Market

Premium Pricing

Set insurance rates based on risk factors

Property Valuation

Assess neighborhood and property values

Tenant Screening

Evaluate rental applicants' reliability

Example: Landlords use data to screen potential tenants for rental properties

How Much Is Your Data Worth?

Data prices vary significantly based on the type of information and its accuracy. Here's what companies typically pay:

$0.50
Basic contact info
$2.00
Demographic profile
$5.00
Purchase history
$15.00
Health conditions

Note: Prices are per person and can vary significantly based on data quality and exclusivity

Impact on Your Life

The sale of your personal data affects you in ways you might not realize:

  • Price discrimination: Different prices based on your profile
  • Limited opportunities: Job or housing rejections
  • Privacy invasion: Detailed profiles without consent
  • Security risks: Data breaches expose information
Key Takeaways

What You Need to Know

The Reality

  • You're Already Tracked

    Data brokers have detailed profiles on virtually everyone

  • It's Big Business

    A $200+ billion industry built on personal information

  • Mostly Legal

    Current laws provide limited protection

Your Options

  • Opt-Out Requests

    Contact brokers directly to remove your data

  • Privacy Tools

    Use services that automate opt-out processes

  • Stay Informed

    Monitor new brokers and changing regulations

Major Data Brokers You Should Know

These are some of the largest companies collecting and selling personal information:

Acxiom

2.5B+ profiles

LexisNexis

Risk solutions

Experian

Credit & marketing

Epsilon

Email marketing

The Bottom Line

Data brokers are powerful intermediaries in the digital economy who profit from collecting and selling your personal information. While their practices are largely legal, understanding how they operate is the first step toward protecting your privacy.

Knowledge is power. The more you understand about data brokers, the better equipped you are to make informed decisions about your digital privacy.

Ready to Learn More?

Now that you understand what data brokers are, explore the differences between data brokers and data providers, or learn about data broker registries.