Which term best describes a business model where companies generate revenue by selling or licensing the data they collect?

• A. Freemium model
• B. Crowdsourcing
• C. Subscription model
• D. Data monetization

Answer: (D)

Verified step by step guidance

1. Understand the key concept: The question asks for the term that describes a business model where companies generate revenue by selling or licensing the data they collect.
2. Review each option's definition: - Freemium model: Offering basic services for free while charging for premium features. - Crowdsourcing: Obtaining input or services from a large group of people, typically online. - Subscription model: Charging customers a recurring fee for access to a product or service. - Data monetization: Generating revenue by leveraging data assets, such as selling or licensing collected data.
3. Match the business model to the description: Since the question focuses on generating revenue specifically through selling or licensing data, identify which term aligns with this activity.
4. Recognize that 'Data monetization' directly refers to the practice of turning data into revenue streams by selling or licensing it, which fits the description perfectly.
5. Conclude that the best term describing this business model is 'Data monetization' based on the definitions and the revenue generation method described.