I’m often surprised at the reaction I get when talking to people about some of the practices that go on out there in the big wide world.  Many people simply aren’t aware of what goes on in some quarters of the research world and how some companies derive their income.

First things first….. do a little search on the internet…. actually, no need,  I’ve just done a quick search and this is what you would find.  Using google and typing in “paid surveys“….. there are 4,120,000 results and just taking the top 3 links….

“Earn £3 per online survey”

“Get £4 for registering and take over £20 in surveys NOW”

“We reward you for taking part in surveys.  Earn upto £50/survey”

All very enticing.  At a time when many people are struggling in the current economic climate you could certainly see why taking part in a paid survey may appeal.  And who am I to say someone shouldn’t earn a few pounds here and there for sharing an opinion?

Well let me lift the lid.

Ask yourself this.  How can a company afford to pay individuals upto £50 per survey?  Let’s say they receive 100 responses to a survey.  That’s an outlay of £5,000, or a typical response level for what are called “omnibus surveys” of say 2,000, thats £100,000 that it would cost the surveying company simply paying for responses.

We all know (or should do) that companies have to make a profit, so as that’s the case, the surveying company is receiving more money than it pays out from one or more source.

What happens in an “omnibus survey” is where companies club together and ask one or more questions and pay per question.  That’s one way some companies generate income. 

There are companies (and certainly be very careful with companies registered and operating outside of your own country that aren’t bound by your laws) that purely operate to groom data.  These are the ones you need to avoid.  And as in other industries, if it sounds too good to be true, it probably is.

So let’s say there is a short survey, you see the details and think…. I’ll do that to get paid £10.  First you put in your details.  Name, age, gender, address, post code.  Some ask for income levels, partner details, if you own your home and much more.  Before you get too alarmed, it’s quite common to ask for that to profile the results into what are called social categories.

You get to the survey itself, and the questions are very broad.  Not linked together too well.  They seem more about spending habits and your retail patterns than about a view and opinion.

Once you have registered and taken part in the survey, those details are sold.  To anyone who will pay.  Often to data farms in India and Cuba in particular.  The more agencies the data is sold to, the more money they make, and the more money they make the happier they are.

But what’s the implication for you?  Phone calls, e-mails, letters, mailshots.  Some from high street names, some purely the seedier end of the spam chain.  Now if you are happy to receive lots of rubbish for £10 or so, don’t let us stop you.  We think it’s important people are aware of the distinction.

So how do you know which companies are using your details to profile results and which are capturing your details to sell over and over again?  

Reputation and size of the company isn’t even a guarantee.  Some of the largest companies have a variety of income streams, some of which come from selling data to agencies.  But here’s what we suggest you do.

First and foremost, if you’re being offered money or entry into a competition or some sort of sweetener to part with personal information, be wary.  If the survey is about your patterns rather than your opinions, be wary.

Search through the company details on their website.  Does it look bonafide?  Is it based in your country?  Does it state it complies with the market research code of conduct or data protection laws?  Does it have contact details and a legitimate office address?

In the survey itself look for opt outs or a survey that gives you the option to volunteer some details or to retain anonymity.  (And remember if you pass through a login portal and take part in a survey, your survey responses can be linked to your personal details.) 

The final point to make is whether you believe you will receive money from the paid survey.  We know several people who have taken part in surveys with a very large well established polling company and have never received a penny as promised.

Be careful out there.