Vendor due diligence questionnaire: what to ask a data licensing platform
A vendor due diligence questionnaire for a data licensing platform should cover five areas: the agreements and who signs them, authorization before any data leaves the company, de-identification and redaction, security of delivery, and how money flows and when the company is paid. The checklist maps each area to SourceX's published answers.
Why run vendor due diligence on a data licensing platform?
A data licensing platform will see an inventory of the company's systems, shape the agreement that governs its records and route the payment, so it deserves the same vendor due diligence a CFO would run on a payroll provider or a new bank. The questionnaire below covers five areas: agreements and authority, authorization before delivery, de-identification and redaction, security and delivery, and money flow. A second table shows where SourceX answers each area from its published facts, and where it does not.
Done early, diligence speeds things up. A CFO who holds the answers in writing can take a clear recommendation to the owner instead of a list of open worries.
The questionnaire
Send these questions to any platform you are considering, and keep the written answers with the board paper.
Agreements and authority
- Is the company licensing its data or selling it, and who owns the records afterward?
- At what point does anything become binding on the company?
- Who signs for the company, and what proof of authority does the platform need?
- Is the license exclusive, for which purpose, and for how long?
- Which parties sign the license, and which agreement governs the buyer's use?
Authorization and control before delivery
- Does any record leave the company before an agreement is signed?
- Who approves the final dataset, and can the company exclude systems, date ranges or record types?
- What do prospective buyers review before a deal: descriptions of the data, or the data itself?
De-identification and redaction
- Who sets the de-identification and redaction rules, and when are they agreed?
- How are the names of customers, employees and third parties handled?
- How is material that belongs to the company's own clients identified and kept out?
- If any health information is involved, which de-identification method applies, or is it excluded?
For that last question, know the standard. HHS guidance describes two ways to de-identify protected health information under the HIPAA Privacy Rule: Expert Determination, where a qualified expert determines and documents that the risk of re-identification is very small, and Safe Harbor, which removes 18 specified identifiers with no actual knowledge that the remainder could identify a person; information de-identified either way is no longer protected health information (HHS de-identification guidance). SourceX treats datasets that are mainly protected health information without HIPAA authorization or de-identification as a red flag at qualification.
Security and delivery
- How is data transferred, stored and accessed during preparation and delivery?
- Who at the platform can see the data, and is access logged?
- What security documentation can the platform share: policies, assessments, incident response?
- What happens to working copies after delivery?
Money flow and timing
- How is the price set, and are there any separate fees?
- Is payment one-time or spread out, and when does it arrive?
- Does any referral or partner payment reduce what the company receives?
- How should the license be recorded in the company's books? Put this one to your auditors, whatever the platform says.
Effort and timeline
- How much internal time will the inventory and review take, and from whom?
- Once the company is deal-ready, how quickly do buyers respond?
Where does SourceX answer from published facts?
| Area | Question | SourceX's published answer |
|---|---|---|
| Ownership | License or sale? | Licensed, not sold; the company keeps ownership |
| Binding point | When is the company committed? | Nothing is binding until the company agrees price and terms and signs |
| Signatory | Who signs? | An authorized sponsor: owner, CEO, CFO or authorized representative |
| Exclusivity | Scope and term | Typically exclusive for AI training for an agreed term |
| Delivery | Can data leave before signature? | Data is delivered only after an executed agreement and the company's authorization |
| Redaction | When are rules set? | De-identification and redaction requirements are agreed with the company before any work begins |
| Price | Any separate fees? | One all-in price, SourceX's fee included, with no separate charges |
| Payment | When does money arrive? | A one-time payment, typically within about 60 days of invoicing once the buyer selects the data |
| Partner payments | Do they reduce proceeds? | No; a referral partner's reward is a share of SourceX's fee |
| Buyer timing | How fast is feedback? | Once a company is deal-ready, buyers typically respond within about two weeks |
| Security controls | Technical measures | Not covered by the published facts; ask SourceX for its security documentation in writing |
The who qualifies page covers entry criteria, and the explainer on the internal cost of preparing data for licensing sets out the internal effort before you send the effort questions.
How do you use the answers?
| Answer pattern | What it signals | What to do |
|---|---|---|
| Written answers match the published facts | Low process risk | Run the company fit checker, then move to an inventory |
| The platform asks for data before an agreement | Control risk | Stop until the sequence is fixed in writing |
| Redaction rules are left until after delivery | Confidentiality risk | Require rules agreed before any work starts |
| Fees are itemized separately from the price | Hard to compare offers | Ask for one all-in figure |
| Security answers are vague | Unknown risk | Escalate to IT and counsel before proceeding |
What are the red flags in any platform's answers?
- It wants sample exports before anything is signed.
- It describes the deal as a sale of the data.
- It cannot say who sets redaction rules or when.
- It promises a price or a buyer before seeing an inventory.
- It suggests health or consumer personal data can be licensed without addressing authorization or de-identification.
For the matching list an M&A or IT diligence team uses on the company itself, see IT and finance diligence request list items that reveal licensable records. If finance capacity is the real concern, read how much finance-team time licensing takes.
This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.
For fractional CFOs who introduce clients
Running this questionnaire is an extension of work you already do, and it puts you in the room when the owner decides. If you would also be the referring partner, say so before you start, so the client reads your diligence in that light. Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company, paid only after the buyer pays and SourceX receives its fee. Credit goes to the first valid referrer whose introduction leads to a verified company application, and if you hold a CPA license, read your state's rules on referral compensation before registering. The partner page for fractional CFOs describes how the role works, and is licensing company data worth it helps frame the owner conversation.
Next step
Send the questionnaire, compare the replies with the table above, then register as a partner to introduce a qualifying client, or point the owner to sourcex.si/apply.
- Step 1Share your linkSend your personal link to a company you know.
- Step 2Company appliesThe company applies itself at /apply.
- Step 3Buyer selects and paysThe buyer selects and pays for the data and SourceX receives its fee.
- Step 4You get your rewardYour share of SourceX fees becomes payable.
Common questions
How is diligence on a data licensing platform different from a standard vendor risk assessment?
A standard assessment centers on security and continuity. With a data licensing platform, the bigger questions are control and rights: when anything becomes binding, whether any record leaves before signature, who sets redaction rules and how the money flows. Keep the security questions, but put sequencing and authorization first, because those decide whether the company stays in control of its records.
Should the company sign an NDA before sharing its data inventory?
It is reasonable to ask for one. A data inventory describes systems, date ranges and record types rather than the records themselves, but it still reveals how the business operates. Ask the platform how inventory information is shared with prospective buyers and what confidentiality terms apply, and have counsel review the answer before the inventory is completed.
Who inside the company should answer the platform's questions in return?
The CFO or controller normally coordinates, with IT for the systems list and export capability, legal for contracts, privacy notices and client data rights, and the owner or another authorized sponsor for decisions on scope, price and exclusivity. Keep the group small. A referral partner takes no part in describing or handling the records.
How long should vendor due diligence take before deciding to proceed?
For a mid-sized company, a short written exchange and one call can cover the five areas, because nothing is binding until the company agrees price and terms and signs. Deeper review of the license agreement itself comes later, once a buyer is interested and terms are on the table, and counsel should read that document in full.
What if the platform's security answers are not satisfactory?
Pause before the inventory stage and escalate to IT and counsel. Ask for specific documentation, such as written security policies, recent assessments and an incident response summary, and agree in writing how data will be transferred and who can access it. No record needs to move until an agreement is signed and the company authorizes delivery, so pausing costs little.
Related pages
- Which US businesses are a fit for a SourceX data licensing introduction
- What it costs a company internally to prepare data for licensing
- Check Company Fit for Data Licensing
- IT and finance due diligence request list items that reveal licensable records
- Our finance team has no bandwidth: how much time does data licensing take?
- Referral opportunities for fractional CFOs
Free resources
- Profit margin calculator — Profit and margin across three scenarios.
- Client opportunity brief generator — An editable intro email, summary and checklist.
- Days sales outstanding calculator — How many days customers take to pay.
- All free tools · MCP resource center
By SourceX Partnerships Team · Published 2026-10-09 · Updated 2026-10-09
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