What will I be doing?

In today's economy, information is one of the most valuable commodities. With accurate information you can make money on the stock market or in real estate, or you can enhance nearly any business. Do you love to gather information? Are you a researcher by heart? If so, consider a home business as an information broker. What do information brokers do? They find and furnish valuable, hard-to-find information for specific customers.

What will I need to start?

To start an information brokerage service in your home, you'll first need to know how to find valuable information. Most information brokers use computers to search electronic databases, so you will need access to a computer as well as an understanding of how to use it. Depending on the type of research you will be doing, you may need membership in online database services. Some researchers start their business ventures using public resources such as libraries and even computers at larger libraries.

Who will my customers be?

Most information brokers specialize in one or more fields. If your background is in rocket science, you'll know how to find answers to specific questions about propulsion systems. If you have business experience, consider offering valuable information to business questions.

As an example, the owner of a successful pizza parlor was considering franchising her operation. An information broker helped her analyze other pizza franchises, discover the best location for a second store and identify attorneys who could help her with the legal aspects of franchising.

How much should I charge?

The hourly rate for information brokers ranges from $45 to $120. The difference is in the value of the information to your customer. If your customer has a curiosity about Continental Mark II automobiles, for example, he or she probably won't pay much for the information. But if a business needs information that will help it launch a new million-dollar product line, your services will be very valuable.

Some information brokers charge by the hour, others price by the project (based on estimated time) or by a percentage of the value of the information. To do so, a business information broker may ask a client what the resulting information will be worth to the buyer, then price it accordingly.

How much will I make?

Because many people don't even know how an information broker can help them, you will spend extra time educating prospects. In fact, 20 to 30 percent of your time will be needed for marketing and even more as you start up your business. Overhead expenses range from 20 to 50 percent depending on whether you include research costs (online charges, books, photocopies) in your hourly rate or add them separately to the bill. Some customers want itemized expenses while others prefer a single price. Remember, though, that if you tell your customers the source of your information, they may decide to go directly to it next time.

A full-time information broker can net $30,000 to $75,000 a year working 40 hours a week. Some information brokers do their research evenings and weekends when online databases are less expensive to access. These databases will cost $20 to $150 an hour during the business day.

How can I get started?

Start learning how to research. Decide whether you will research online or the old-fashioned way. Decide who your customers will be and what they will want to know. Then find out where you can get the information for them with the least effort and expense. Finally, start contacting prospective customers to let them know about your services.

If you're uncomfortable with charging high hourly rates, offer discounted rates for the first few months of your business. By then your skills will be developed and your customers will see the value of your service. If you do offer a discount, trade it for a letter of recommendation.

For more information call 212-779-1855 for the Association of Independent Information Professionals.

How can I use computers to increase profits?

Information is your product and computers are your tools. The Information Age was born with the computer. You cannot run a competitive information brokerage today without a computer. So learn to use your computer for information mining on the Internet, online databases, online libraries, and on CD-ROMs. Take classes, if needed, on using the Internet. Use the many search engines (Yahoo.com, Looksmart.com, Northerlight.com, etc.) to dig up information for your clients and for yourself.