Sell Data to AI Companies: How Long Until You Get Paid?
AITrainingDataBroker.com
Sell Data to AI Companies:
How Long Until
You Get Paid?
Yes, we want your data
DAY
$0.00
Got a yes from an AI company?
The 7 stops, the 4 payment triggers, the delays, how to make it shorter
Jimmy Lin
Sell Data to AI Companies: How Long Until You Get Paid?
The email says yes: an AI company wants to license your data, and the contract is on its way.
Then a week goes by, then a month, and your bank balance has not moved.
So when does the money actually land?
The video
Sell Data to AI Companies: How Long Until You Get Paid?
Full script
The email says yes: an AI company wants to license your data, and the contract is on its way.
Then a week goes by, then a month, and your bank balance has not moved.
So when does the money actually land?
From signing to money in the bank, most data deals take about 1 week to 3 months.
That is a typical range, not a promise, and it is a wide one.
Most owners think the AI company's speed decides where you land.
It is actually the payment trigger, the event in the contract that starts the clock on your money.
Get that one detail right, and the wait can get weeks shorter.
This is general information, not legal advice.
So first, here is every stop between the first call and the money.
From the first call, every data deal passes the same 7 stops on the way to your bank account.
First comes a short fit check, then an NDA, an agreement that keeps the talks private, and a small sample.
Next, the AI company makes an offer, and the contract is often signed 1 to 2 months after that first call.
Most deals are licenses, so you keep your data and the rights.
Then your data is de-identified, which means the names, account numbers and prices are stripped out, and it is delivered.
After that comes a review, then your invoice, and then the payment.
Those last 3 stops decide the wait.
What decides how long those stops take is which of the 4 payment triggers sits in your contract.
The fastest is payment on delivery, where the AI company pays when your de-identified data arrives.
The second is payment after a review: the AI company gets a window, for example 30 business days, to check the data.
Only then do you send the invoice, and the payment terms, often 30 days, start to run.
With the third, a company in the middle pays you only after the AI lab pays it, so you wait twice.
The fourth pays in stages: a part up front, then a share of what the data earns over time.
Same data, very different waits.
Now, 5 things can quietly stretch that wait.
The review window is the first, because you can not send the invoice until it ends.
A wrong description of your data is worse.
Say a manufacturing company calls its machine logs complete, and a few months turn out to be missing.
Under some contracts, the AI company may then refuse to pay, or even take money back.
Or the money may sit with another company that is still waiting on the AI lab.
Exporting and de-identifying the data takes time too.
The last delay is on your side: your own legal review, and deciding which data is in the deal.
So how do you make the wait shorter?
Start by being ready before the first call: know which systems hold the data, and how many years you have.
Know who owns it, who will sign for the company, and stop any auto-delete that clears old files.
Then describe your data accurately: what is there, and what is missing.
On your side, the main job is exporting the data, and we guide your team through it.
This will not fit every company, because data on paper or in very old systems takes longer to get ready.
But each step you finish before that call takes one delay out of the wait.
Next, settle the payment terms early, in the first real talk about price, not at the end.
Ask what starts the payment and when it is due, and ask for payment on delivery or a part up front.
If there is a review, write a review deadline into the contract.
According to the EU's Late Payment Directive, February 2011, a review between companies should take no more than 30 days.
That limit can change only when the contract clearly says so, which is why your deadline belongs in the contract.
You can also ask for escrow, which means a third party holds the money until your data is delivered.
One more question changes the wait: who actually sends the money for your data?
Sometimes the AI lab pays you directly, so there is one wait.
Other times, a company in the middle pays you, and it may wait to be paid by the lab first.
Some do not wait at all, so do not guess.
Ask 3 things: who sends me the money, is it on delivery or after a review, and how many days?
Before you sign, here is the takeaway: the payment trigger decides the wait, so get it in writing.
Tonight, write down 5 questions for your next call with an AI company.
What triggers payment, and how many days does it take?
Is there a review, and how long can it last?
Who sends me the money, and can part of it come up front, or sit in escrow?
Then have your lawyer read the payment part of the contract before you sign it.
So you may be asking: who can make sure I get paid on time?
That is what I help with, so let me tell you who I am.
I'm Jimmy. I have worked in data at Fortune 500 companies, as a data analyst, a data engineer and a software engineer, and I am trained in data science. I am also a Canadian military veteran, specialized in data analysis and reporting.
In a data deal, I come in as your broker and technical advisor.
As your broker, I take one de-identified sample of your data to several AI labs and bring back their offers, so you can compare price, terms and when you are paid.
I work through the terms with you, and you make the final call.
As your technical advisor, I guide your team through what to export, the format, the de-identification and compliance.
We move forward only after your team signs off.
AI companies pay my fee.
Already shopping your data around? Contact us anyway. We can still work through the terms with you and help you negotiate a better price.
If you are buying data for an AI lab, I find the right data and see it through to delivery.
How long you wait comes down to the payment trigger, more than the AI company you pick.
Tonight, put those 5 questions where you will see them before your next call.
More on getting paid for your data at AITrainingDataBroker.com.
Thank you for watching.
I will see you next time.
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