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Infogroup’s Gupta To Launch New Data Firm

from Direct.com

Vinod Gupta, the founder and former CEO and chairman of information firm Infogroup, is getting back into the data game. His newest endeavor, Database101.com, will officially debut within 45 to 60 days, Gupta told Direct Newsline.

The new company will focus on providing technology for salespeople and small business owners, Gupta said. Planned offerings include tools that will allow them to analyze and map prospects, open-source customer relationship management modules and forums for salespeople to chat with each other.

It will also provide data. The firm’s soft-launch home page (http://database101.com/) currently heavily touts data offerings, boasting 17 million business and 200 million consumer sales leads. Additional services, such as e-mail marketing, analytics, merge-purge and list enhancement are listed off to one side.

That focus will change, Gupta said. “When you are selling data it’s like you’re selling corn. And we are selling corn flakes, or corn bread — things which [clients] can really use for their day to day applications. When we are ready, you will see the full suite of products.

“Data is becoming a commodity,” Gupta added. “It’s not that big a deal right now.”

The new company won’t be offering Infogroup data. “There are equally good databases available from other sources,” Gupta said. “On the other hand, we plan to start compiling data next year.” Gupta wouldn’t go into detail about what would differentiate his data, but he did say that Database101 would be amassing both business and consumer information.

Database101’s anticipated client base is the smaller-budget marketer, Gupta said. “Everybody is trying to sell a $5,000, $10,000 product. Nobody wants to sell to someone who has only $200. Salesgenie [an Infogroup product that provides small quantities of leads via online channels] was one attempt, but we think we can go beyond that.”

Database101 currently employs around 20 people, including a number of former Infogroup hands. Among others, Monica Messer serves as president of database and technology. Fred Vakili is president of customer satisfaction. Rod Irwin is VP of sales. John Ferris is listed on the Web site as VP of really great databases (vice president of product and content). Scott Thompson, in actuality VP of technology solutions, is pegged as VP of technology solutions that are easy to use. Don Czya is the deep data masseuse. And controller Ron Hanzlicek also bears the moniker Count de Money.

The titles, official and otherwise, reflect a conscious move from button-downness. “We did that for the fun,” Gupta said. “A lot of businesses are bland. [We have] a more light-hearted humorous approach to our work environment. I want to have a work environment where people come in and it’s fun.”

Plans call for the company to employ 50 people by year-end, and between 200 and 300 within a few years. “We’re looking at this operation as being a fairly good-sized company, with $100 million in revenue within three to four years,” Gupta said.

Gupta’s focus on technology over data echoes the direction Clare Hart, the new CEO of his previous company, has indicated she wants to take Infogroup (http://directmag.com/news/infogroup-hart-data-service-0721/). Has he thought about how his new venture would compete with Infogroup?

“I don’t know what they’re doing,” he said. “I don’t track them anymore. We see there is a void in the marketplace where small businesses and salespeople are clamoring for answers and solutions, and that is the market we are looking at. I don’t really look at competitors. I look at how to fill the need.”

There are some paths Infogroup took that Database101 won’t be walking. Infogroup was known for aggressively acquiring list firms, a strategy Gupta now eschews. “List management and brokerage serves a very valuable purpose, but we don’t have any plans to go after larger customers, and brokers and managers cater to larger customers. We don’t have any plans to acquire [list firms].”

There is at least one marketing decision Gupta made when he led Infogroup which will likely carry over to Database101. In addition to promoting his new venture through expected channels, he may return to placing ads during the Super Bowl, a tactic he used in 2007 and 2008.

“We’re still finalizing our media mix, but there’s a strong possibility of another Super Bowl commercial,” he said.

Were there any lessons Gupta took between the time he founded Infogroup (then American Business Information) in 1972 and his current venture?

“Stay private – not to go public,” he said.

Gupta stepped down as chairman of Infogroup in July 2008, and as CEO in August of that year. The latter resignation was part of a litigation settlement with the Securities & Exchange Commission. Gupta remained on the company’s board until March of this year, just before its sale to private equity firm CCMP Capital.

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