A single payment
Labelbox Prism offers wind-down packages: a single payment for a company's full operational records. One payment is simple and final, which suits a company closing down, but there's nothing more if the data proves popular.
A revenue share
Labelbox Prism pays an upfront licensing fee at signing plus a revenue share on downstream use. Turing's Project Lazarus pays nothing upfront: it pays you each time your record is licensed, and it's the only seller of your record for the first 90 days. A revenue share keeps you an interest in how the data is used, but it's only as good as the reporting behind it, so ask how it's calculated and how often you'll see figures.
Payment on delivery or approval
Mercor pays by wire when the de-identified dataset is delivered, typically 2–4 weeks after signing, and covers the cost of extraction. micro1 has 30 days to review data after transfer and pays within 30 days of your invoice, so allow up to two months from transfer to cash.
What the price depends on
- Data type and scale: what kind of records, how many years, how many systems.
- Exclusivity: Labelbox Prism says exclusivity requirements are reflected in the price the buyer pays, but exclusive access means giving up other buyers.
- Rarity and completeness: Labelbox Prism says the know-how inside a long-running company is hard to recreate, which makes it valuable.
- How many tools you connect: Mercor says more tools means a higher payout.
Questions to ask before you sign
- What triggers each payment, and is there an acceptance test the data must pass?
- Can any payment be clawed back, and on what grounds?
- For a revenue share: what's the base, how is it reported, and can you audit it?
- Which currency? The programmes above quote US dollars, so exchange rates affect what you receive.
- Who pays for export and de-identification?
- What happens to future payments if you revoke the licence?
Tax
Licence income is still income, and VAT may apply depending on your circumstances. Ask your accountant how it will be treated before you sign.
If we act for your company, our fee is 12% of what you receive, after any platform or payment fees (8% on the part above £1m; £2,500 minimum on deals of £20,000 or more), and only applies if a deal closes. See pricing.
- Compare the shape of payment, not just the total.
- Revenue shares need reporting and audit rights.
- Allow up to two months from transfer to cash on some programmes.