TWO PRIMARY SOURCES OF U.S. BUSINESS PROFILES

There are two types of data compilers: mega compilers and niche publishers.

Mega Compilers

• Collect information on 10 million or more U.S. businesses in all industries
• Typically are large and public (stock exchange listed) corporations
• Often collect or provide credit rating information
• Use a wide variety of sources to build profiles:
  • Local yellow pages directories
  • State government rosters of licensed firms
  • Company web sites
  • Some verifiers who phone businesses for updates
  • Computer automated phone interviews

Niche Publishers

• Collect information on tens of thousands to a few hundred thousand U.S. businesses in one industry
• Spend more on average per record in compiling a business profile than do mega compilers
• Compile accurate, in-depth profiles to gain competitive advantage over mega compilers
• Tend to be small to mid-sized privately held firms
• Generally do not collect or provide credit rating information
• Typically publish a directory used by potential customers, suppliers and business partners

Buyers’ dilemma seeking company profiles in multiple industries

Mega Compilers

• Offer wide selection of industries but with less accuracy and depth than the best niche publishers
• Usually do not provide data fields that are unique to an industry

Niche Publishers

• Require multiple negotiations and contracts with different industry specific compilers
• Files are in different structures and formats requiring major technical resources to normalize
• Metrics for determining company size are not standard
• Beds for hospitals, assets for banks, enrollment for schools, etc.
• Multiple niche publisher files typically contain duplicate business profiles and contact names