The True Cost of Clean Investment Sales Data: A Breakdown

As a salesperson or a sales leader, you have one enemy greater than all the others. Sure, rejections are part of the job, but this is worse than a simple rejection. 

It’s something that stops you from doing your job well, or, sometimes, doing your job at all. 

What is it? You probably already know: stale, outdated data. 

Stale data causes you to waste valuable time chasing down contact information and finding the right people to call on. Instead of having a full database of leads you can take action against, you have to hunt down emails and job titles on LinkedIn, firm websites, wherever you can. 

Clean data also comes at a cost. Which is why we’re breaking down what it would cost for a firm to hire a full-time data research analyst to keep your data as clean and up-to-date as possible. Of course, a full-time role is not the only option here. You can also choose to invest in a database that updates itself on a daily, consistent basis. But which is worth your investment?

In this article we’re going to give you a cost breakdown of hiring a full-time data research team in order to compare purchasing an institutional investor database. By the end of the article, you’ll have a better understanding of the two costs, as well as an understanding which is worth your investment. 

To start, we’ll break down the three defined areas of cost when it comes to hiring a data research analyst for your firm. 

The three defined areas of costs

1. Personnel to maintain existing data. This includes anything and everything from updating emails, phone numbers, job changes, new hires and exits to prospect and customer firms; maintaining the key information on each account: what they buy/don’t buy, and staying updated on recent updates and news on each account, just to name a few. 

2. Personnel to add new data. The lifeblood of any sales organization is the “new.” Finding the “new” means locating new prospects to sell your products or services to. To do this effectively, dedicated team members are needed to continually find new accounts and contacts for your sales team to call on and build relationships with. 

3. Various software and tools. Even with an in-house staff, you’ll need to equip them with the software and tools they need to ensure that all the data is clean. For example, these tools can include platforms like: Seamless, Neverbounce, Emailable, Rocketreach, LinkedIn Sales Navigator, among others. All of these tools come at a cost and should be calculated into your overall spending for data maintenance. 

How much does it cost to add personnel to maintain existing data?

This cost will vary based on the size of your database and how much data is within it. Once you know that number, you can estimate that one Data Research Analyst is needed per every 15-20K contacts in your database.

The estimated cost for a new data team member (all-in with benefits and associated employment costs) is approximately $100,000.

How much does it cost to add personnel to find new opportunity data?

At least one data team member should be dedicated to “finding the new” at any organization. If your firm is attempting to access new channels, new geographies, etc., more new data team members could be needed depending on the scope and goals of the sales team. 

As stated above, the estimated cost for a new data team member (all-in with benefits and associated employment costs) is approximately $100,000.

How much do you need to budget for data cleansing software tools?

Additional software tools and licenses can cost anywhere from $25-30K per year or more depending on the size of your team. 

Additionally, it should be noted that in addition to software, other costs may arise as well, such as:

• CRM licenses for each data team member

• Professional LinkedIn tools to help track employment changes (new hires, terminations, role changes) at your prospects and customers

• One or more email tools to test existing emails addresses to identify bounced emails and to identify new email addresses where needed

• Website change detection software to identify when prospects or customers or other necessary information on variety of websites has changed

Next, we’ll run through some examples based on database size, and help outline the estimated cost for each. 

How many data team members do you need, and what will it cost?

In this section, we’ll break down how many employees you’ll need depending on the size of your dataset, and add in additional costs such as software and other tools. These costs are estimates based on Dakota’s on research, internal team, and can of course vary by firm and needs. 

Example database: 35K contacts, normal effort to identify new prospects, and software tools:

• 2 professionals for existing data: $200K

• 1 professional for new data:$100K

• Software tools: $30K

Total estimated annual cost $330K

Example database: 50K contacts, effort to enter new channels with existing products:

• 3 professionals for existing data: $300K

• 2 professionals for new data: $200K

• Software tools: $30K

Total estimated annual cost- $530K

These costs, which can be anything from $330,000 to $530,000 per year, show that maintaining clean and accurate data is a critical investment, but it is a big investment.

Is there any other way to keep your data updated?

The numbers above can seem overwhelming and huge, we know. But, all is not lost. While it’s imperative that your data stays fresh and accurate, you don’t necessarily need to employ an entire data team yourself. In fact, many firms don’t have the resources or the budget to do this, and have turned to outside institutional investor databases to provide that clean and accurate data for them.

While a database can come at a cost as well, it’s a fraction of what it would take to hire and retain an in-house data team. 

An institutional investor database can cost anywhere from $5,000 to over $30,000 per year, depending on the needs of your firm. 

There are plenty of considerations and questions you should ask before you invest in a platform, including the number of new leads you’re looking for, the budget allotted, channel focus, and more. 

Is an institutional investor database right for your firm?

Again, this all depends on your individual needs, and factors such as outcomes, budgets, and the size of the dataset all come into play here. There are dozens of institutional investor databases on the market, including Money Market Directory, Nasdaq eVestment, PitchBook and more which we’ve outlined in this article.

Of course, we’d be doing ourselves a disservice if we did not mention our own database, Dakota Marketplace. We’ll jump into that next.

What is Dakota Marketplace? 

Dakota Marketplace is our own institutional investor database and an all-in-one solution that provides investment sales teams with complete and accurate data to help accelerate their fundraising efforts.

The platform is the database of our own Investment Sales team, who have been fundraising since 2006. With the mission to make fundraising easier, Dakota Marketplace is a database that’s complete, accurate, and updated daily across institutional and intermediary channels in the US and globally.It’s built by fundraisers, for fundraisers.

With a Dakota Marketplace membership, there’s no more switching between your CRM, spreadsheets, and database. We make it seamless to monitor everything you need without jumping from platform to platform. You’ll be able to:

• Create targeted lists: Create custom views and reports on exactly the allocators, asset classes, and people you most want to target.
• Track industry turnover: The investment industry moves fast. Make sure you’re always calling on the right person, in the right role, at the right place, without wasting any time on bad emails and contact information.
• Maximize your travel: Make the most of your travel time with the Map It feature. Book additional meetings, identify firms that allocate to your type of investment strategy, and connect with due diligence professionals that sit remotely within a given city.
• Access industry insights: Access weekly insights from our Dakota Live! Calls and monthly Emerging Manager Growth Shows and Rainmaker Live! Sales Training sessions all in one place.

A subscription to Dakota Marketplace is $15,500 per year, and $1,000 for each additional user license.

What if I don’t want to purchase a full database?

Purchasing a whole new database of accounts and contacts can seem overwhelming upon the initial thought. If you’re used to working from your CRM, spreadsheets, and papers – it can be a lot to “start over.” This transition often involves significant changes in workflows, data migration challenges, and the learning curve associated with a new system. The familiarity and comfort with existing tools and processes can make the idea of switching to a new database daunting.

Additionally, if you and your team are working on a smaller scale, a larger database full of information may not be 100% applicable to you. Smaller teams may not need the extensive range of data that a comprehensive database offers. Instead, they might require more targeted, specific information that aligns closely with their niche markets or specific fundraising goals. The excess data in a large database can be unnecessary and overwhelming, leading to inefficiencies rather than productivity gains.

Smaller platforms tend to be more affordable than an all-encompassing database since you are purchasing a limited amount of data. This affordability can be particularly attractive for smaller firms or startups with tighter budgets. By opting for a smaller platform, you can ensure that you are only paying for the data you need and can manage, avoiding the higher costs associated with larger databases that come with extensive, and sometimes superfluous, data sets.

If you’re not looking to start fresh with a new database, considering a smaller platform is an alternative. A smaller, more focused data platform can provide the essential data needed for your fundraising efforts without the overwhelming scope and cost of a large-scale database. Which is where we’ll talk about DealSignal.

DealSignal

DealSignal is a B2B data platform full of comprehensive, fresh, and accurate data to power your sales and marketing performance. This platform enhances your sales and marketing efforts by offering detailed profiles, verified contact details, and data enrichment services, which help in precise targeting and personalized outreach. 

DealSignal realizes that It’s hard enough to achieve your daily goals and build a pipeline without bad contacts and missing direct-dials standing in your way. With a subscription to DealSignal you’ll be able to:

• Eliminate tedious manual research

• Build your pipeline faster

• Access direct-dials, mobile phones, and more

• Follow up on leads faster and prioritize effectively

• Hit your numbers by focusing on in-market buyers

• Automatically capture new contacts and get their verified email and phone

There are three tiers to DealSignal’s pricing: Starter, Professional, and Enterprise. The Starter tier is billed annually and is $5,988 – breaking out to $499 per month. You will get access to a  smaller amount of records, verified B2B data, and one administrator and 3 named users. For further information on their Professional and Enterprise tiers, visit their website.

So, which option is best for your firm?

Now that you know the approximate costs associated with hiring a data team and buying an institutional investor database, it’s time to make some decisions. Either way, it’s a huge investment. While we think clean data is an absolutely critical component of building a strong sales team, we also know it comes at a high cost. 

• Hiring a Data Team: If you have a small team and a small dataset, are growing rapidly, are expanding your team, or want to see exactly what goes into your database every day, an in-house data management team might be the best fit for your firm. This option provides complete control over your data processes and ensures that your team can tailor data collection and maintenance to meet specific needs and goals.

• Purchasing an Institutional Investor Database: If you want to focus on selling rather than data maintenance, are just starting out, or want the certainty that all of your contact data will be reviewed on a daily basis, then an institutional investor database is the best fit for your firm. This option offers a cost-effective and efficient solution with regularly updated and accurate data, allowing your team to concentrate on core sales activities without the burden of data management.

• Purchasing a Smaller Platform: If you’re not looking to start fresh with a new database, considering a smaller platform is an alternative. For firms working on a smaller scale, a smaller platform like DealSignal can provide targeted, high-quality data that is more affordable and manageable, offering an effective solution without the overwhelming scope and cost of a full-scale database.

If you’re ready to find out more about Dakota Marketplace, start a free trial today!