Advisor Playbook: Introducing Data Licensing During Restructuring

As a restructuring advisor, you're constantly seeking innovative ways to unlock value and stabilize companies. Data licensing, facilitated by SourceX, presents a significant opportunity to generate non-dilutive revenue from underutilized data assets. This playbook outlines a practical, step-by-step approach for integrating this potential into your restructuring engagements, ensuring compliance and maximizing client benefit.

1. Initial Fit Check: Is This Company a Candidate?

Before approaching your client, quickly assess if they might be a good fit for data licensing through SourceX. We focus on specific criteria to ensure successful engagements.

• US-based company: Our current focus is on US companies.
• Established operations: Does the company have years of operating records?
• Significant workforce: Does it have 50 or more full-time employees at its peak (excluding contractors)?
• Data ownership and rights: Does the company possess clear rights to license its data?
• Authorized sponsor: Is there a potential C-suite or senior executive who can champion this initiative?

If the company broadly meets these points, it's worth exploring further.

2. Introduce the Concept to Your Client

Frame data licensing as a strategic value-creation or liquidity option. Emphasize that it's about monetizing existing, often overlooked, data assets without impacting core operations or requiring new capital investment.

• Present it as a potential non-dilutive revenue stream.
• Explain that SourceX is the enterprise data transaction layer for AI, managing data licensing from sourcing and rights review to delivery and payment. SourceX does not train AI models.
• Stress that their involvement is minimal; SourceX handles the complexities of the licensing transaction.

3. Secure Client Approval and Define Scope

This is a critical step. The company must approve the scope of the introduction. Your role is to facilitate the initial connection, not to manage data or negotiate on their behalf.

• Client consent: Explicitly obtain your client's approval to introduce them to SourceX for a data licensing exploration.
• Scope limitation: Confirm with your client that the introduction is solely for data licensing exploration. This ensures transparency and manages expectations.
• No data handling: Reassure your client that as an advisor, you will never handle their company's data. All data discussions and transfers are directly between the company and SourceX, under strict security protocols.

4. Prepare for the Introduction

To ensure a smooth handoff, gather the necessary basic information about the company. This isn't about data specifics, but about the company's identity and a primary point of contact.

• Company basics: Legal name, website, and general industry.
• Primary contact: Name, title, and email of the authorized sponsor or executive within the company who will engage with SourceX.
• Key value proposition: Briefly articulate why this specific company's data might be valuable to AI labs and data buyers.

5. Make the Introduction to SourceX

With client approval and basic information, you're ready to make the referral. This is typically done through our online partner portal.

• Submit the company's details and your contact's information via the referral program.
• SourceX will then directly contact the referred company's designated sponsor to initiate discussions.

How Rewards Work for Partners

As a referring partner, you stand to earn significantly. SourceX rewards are a share of the fees SourceX collects, not deducted from the company's proceeds.

• Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals.
• Rewards are capped at $100,000 cumulative per referred company.
• Rewards become payable only after the buyer pays and SourceX receives its fee. A lead, meeting, or signed agreement alone does not trigger payment.
• Credit for a referral goes to the first valid referrer whose introduction leads to a verified company application within the attribution window.

Illustrative Example (Hypothetical Inputs):

If a referred company generates $1,000,000 in fees for SourceX over time, and assuming the reward rate is 'X', the partner would earn 'X' amount, up to the $100,000. This payment is tied to SourceX's actual collections, aligning interests directly with successful deals for your clients. The partner reward is a share of SourceX's fee and is never deducted from what the company receives.

Remember, anyone can join from any supported country. Licensed professionals should check their own rules on referral fees.

Refer a company · How rewards work