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Ready to earn billions by collecting and selling data through your own mobile app?

While installing an app on your smartphone, how many times have you come across the dialogue box which says that the app wants permission to access your contacts, device ID and call info, location, storage, media files, SMS, app history, etc? Surely many times, haven’t you? It requires you to tap on the ‘accept’ option, after which your install starts. By tapping on the accept button, you yourself give the app the permission to have access to your information.

Who are These Companies and Third Parties that Require Large Databases of Users’ Personal Data?

Advertising Companies- To find out what advertisements should be targeted at what geographical location, what type of advertisements would be of interest to what users, etc. When these companies will know more about you, they will be able to advertise more effectively, which would also be more relevant for the intended audience.

Government- The government requires access to all the information related to their citizens. For this, they purchase large databases from companies that collect user data via their mobile apps. Some types of data that the government requires include the users’ address, their credit card purchase history, their GPS locations, etc.

Insurance Companies- For insurers, getting the data about the people they insure, could be a goldmine for them. They identify risky people through this data. Health insurance companies are required to figure out the smoking and drinking habits of their insured users in order to decide how much premiums should be paid. Also, it helps them to price their policies and determine risk for different people.

City Planners- City planning requires data related to the paths that runners use and cyclists & bikers ride, how people use public transportation, etc. For improvements in future city planning and for deciding where to make new bike lanes, they use this data.

Marketing firms- They gather information about their customers and potential customers in order to send them discounts, catalogs, and recommended products and services for purchases, among other things.

Research Firms- There are firms that are solely there for research purposes. They are involved in customer analysis, competitor analysis, risk analysis, and product research, among other things. They require the huge data to get assistance in providing latest trends related to demand, consumer behavior, etc, and to also understand the market demographics better.

Retailers- Small shopkeepers and retailers use this data to figure out how they can make their products and services better and customized according to the needs of the users and their online buying pattern. With this, they are able to create more personalized experiences for their customers and drive loyalty. For example, data collected by a fitness app can be used by apparel stores to help them make better clothing.

Trade associations- They are involved in public relations activities, publishing activities, as well as collaboration between different companies and professions. They also produce generic advertisements for a specific corporate product or brand. For all these activities to be relevant to the targeted niche, they require data.

Ways to Collect Data Through Your Mobile App

Some data gets collected automatically, like the type of mobile device that the user has, a unique identifier, information about how the apps are being used, etc.

Data can be collected by getting your users to fill certain forms, which would require them to enter details like their email ids, names, gender, etc.

Another way is by making them your subscribers by offering them coupons, vouchers, and rewards in return. Becoming a subscriber requires the users to enter their email ids, and other contact details.

Single sign-on: This is a way to collect user data by making your users sign into your apps via their social media accounts like Twitter, Facebook, etc to let them share the app’s content.

You can also use your app to get access to you users’ address books and calenders, whether the apps needs it or not, and after analyzing that information, further, share or sell it to advertisers.

Unique Identifiers: By combining the unique device identifiers (UDIDs) with location data, advertisers and others track mobile users to send users advertisements based on their geographical locations.

Asking for information access in return for giving coupons to the users is a smart way through which mobile apps gain access to their data.

Also, you can further ask for permissions to access users’ data when they want to download an in-app file in your app.

Surely not the most ethical way to earn money, but most of the big companies in existence today collect data via their mobile apps, of their customers and users. After having a large database of users’ personal information, they further sell this data to third parties for billions of dollars.

Who are These Companies and Third Parties that Require Large Databases of Users’ Personal Data?

Advertising Companies- To find out what advertisements should be targeted at what geographical location, what type of advertisements would be of interest to what users, etc. When these companies will know more about you, they will be able to advertise more effectively, which would also be more relevant for the intended audience.

Government- The government requires access to all the information related to their citizens. For this, they purchase large databases from companies that collect user data via their mobile apps. Some types of data that the government requires include the users’ address, their credit card purchase history, their GPS locations, etc.

Insurance Companies- For insurers, getting the data about the people they insure, could be a goldmine for them. They identify risky people through this data. Health insurance companies are required to figure out the smoking and drinking habits of their insured users in order to decide how much premiums should be paid. Also, it helps them to price their policies and determine risk for different people.

City Planners- City planning requires data related to the paths that runners use and cyclists & bikers ride, how people use public transportation, etc. For improvements in future city planning and for deciding where to make new bike lanes, they use this data.

Marketing firms- They gather information about their customers and potential customers in order to send them discounts, catalogs, and recommended products and services for purchases, among other things.

Research Firms- There are firms that are solely there for research purposes. They are involved in customer analysis, competitor analysis, risk analysis, and product research, among other things. They require the huge data to get assistance in providing latest trends related to demand, consumer behavior, etc, and to also understand the market demographics better.

Retailers- Small shopkeepers and retailers use this data to figure out how they can make their products and services better and customized according to the needs of the users and their online buying pattern. With this, they are able to create more personalized experiences for their customers and drive loyalty. For example, data collected by a fitness app can be used by apparel stores to help them make better clothing.

Trade associations- They are involved in public relations activities, publishing activities, as well as collaboration between different companies and professions. They also produce generic advertisements for a specific corporate product or brand. For all these activities to be relevant to the targeted niche, they require data.

Ways to Collect Data Through Your Mobile App

Some data gets collected automatically, like the type of mobile device that the user has, a unique identifier, information about how the apps are being used, etc.

Data can be collected by getting your users to fill certain forms, which would require them to enter details like their email ids, names, gender, etc.

Another way is by making them your subscribers by offering them coupons, vouchers, and rewards in return. Becoming a subscriber requires the users to enter their email ids, and other contact details.

Single sign-on: This is a way to collect user data by making your users sign into your apps via their social media accounts like Twitter, Facebook, etc to let them share the app’s content.

You can also use your app to get access to you users’ address books and calenders, whether the apps needs it or not, and after analyzing that information, further, share or sell it to advertisers.

Unique Identifiers: By combining the unique device identifiers (UDIDs) with location data, advertisers and others track mobile users to send users advertisements based on their geographical locations.

Asking for information access in return for giving coupons to the users is a smart way through which mobile apps gain access to their data.

Also, you can further ask for permissions to access users’ data when they want to download an in-app file in your app.

Surely not the most ethical way to earn money, but most of the big companies in existence today are getting their mobile apps developed by some competent mobile app development companies to collect data via their apps, of their customers and users. After having a large database of users’ personal information, they further sell this data to third parties for billions of dollars.

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