There are a lot of benefits to having a privacy policy on your site, including:
1) It builds trust with your visitors
2) Some web browsers will actually let visitors know you have no privacy policy, which discourages visitors from staying on your website.
3) A privacy policy is required for website owners who reside in certain states.
The problem is who can afford to hire a lawyer to write one for a website that hasn’t made any money yet? This site offers a free privacy policy generated that you can at least start with. Go to:
http://www.the-dma.org/privacy/creating.shtml
Here is a direct link to the privacy policy creator: