As guardians of user privacy, we’re often confronted by the question: what are we giving up by refusing to monetize our users’ data?
We build and sell a privacy-focused app with a strict zero-data-collection policy. This means no tracking of browsing history, app-activity logging, or personal data collection.
This raises an intriguing question: how much revenue could we potentially generate if we chose to sell user data instead?
Are we essentially leaving money on the table?
Opportunity Cost, Quantified
Our app’s subscription currently sits at $30 per year.
Data brokers typically pay between $10 to $15 per user per year, depending on data granularity and volume.
This means that with a single data deal, we’re sitting on approximately 50% of high-margin revenue that could be tapped.
There’s many brokers – Lotame, Experian, Equifax, and Datos (part of SEMrush) that are potential partners in this space. And crucially, unlike App Store sales, data payments wouldn’t incur a 15% App Store tax.
As an aside, Apple loves to tout its “privacy credentials.”
However, the App Store’s policy of only taxing paid apps encourages app business models that disregard this principle, creating a fertile environment for data mining.
Perhaps Apple’s stance is more marketing than substance?
Our Position is Unshakable
We don’t collect, track, or store user data — period.
Still, we’re regularly approached by data brokers seeking partnerships.
The question remains: what’s the opportunity cost of sticking to our privacy-first ethos?
The Data Mining Industry
Data mining isn’t harmless — it’s a massive, murky market. And as ad block developers, we built Magic Lasso to safeguard both our users’ and our own privacy.
But not all ad blockers play fair.
Many openly admit in their privacy policies that they do track user behaviour – whether they sell it is often undisclosed.
Users should be concerned.
Crunching the Numbers
- Our current subscription revenue per user is $25.50 per year ($30 subscription, minus the 15% App Store tax)
- Per user data revenue potential is around $10 per year. With approximately three data deals, this means the additional potential revenue is at least $30 per user, per year
- Meaning an unrealised margin and profit increase of over 115%
In summary, we could more than double our revenue and profit by selling user data.
This isn’t theoretical: it’s real cash left on the table.
Are Privacy-Focused Business Models Sustainable?
Yes, it is sustainable.
As a private company, we are not beholden to investors, shareholders, or public markets. Our success is measured by sustainable, ethical growth, not exploitation. Direct, privacy-driven revenues from actual customers who love our product are more desirable to us than data deals.
We also pride ourselves on being transparent.
Therefore, we prefer to publish this modelling and make our users aware of the sacrifices that truly privacy-focused businesses make, rather than keep it hidden.
How Do We Do It?
- No venture capital
- No compromised values
- A commitment to quiet, consistent growth, supported by Magic Lasso’s steady subscriber base and 30%+ year-on-year profit increases
We’re a small independent company and can luckily afford to put values above valuation. For more details, see our annual Year in Review posts.
Conclusion
Choosing privacy does come at a cost – the cost of forgoing easy data revenue. However, this cost is our statement of integrity. We prioritise sustainable, value-driven growth over a quick sale of our users’ lives.
As seen above, it’s understandable why many apps don’t take this path: selling data is a quick and easy way to make money.
