Online paid surveys are a dream for anyone who has been thinking of working from home or looking to pick up some extra income. Providing your opinion in exchange for cash has quickly grabbed the attention of the online masses. With so many people already benefiting from taking online surveys, you might be thinking “Why are companies paying people to take their surveys in the first place?”. This is a core question that all people who take online surveys should know the answer to.
If you want to learn why companies pay to have consumers take their surveys, read on!
Valuable Product Data
Companies are continually collecting as much product data from their target market as possible. Data collection happens through many mediums, such as purchasing reports about a specific target market. Consumer data can also be purchased from several companies that collect and sell non-identifying customer information.
Data from these sources give companies a quick look into who is buying their products. Even though this data gives companies a lot of information about who their customers are, it does not go deep enough to tell them what their customers think.
From a company’s standpoint, data about what consumers think about a product is much more valuable than who a consumer is. The only way for companies to collect this data is by directly asking consumers what they think about a particular product. Most companies collect consumer opinions through the use of surveys, since answers can be made uniform for all participants.
So now we know that what consumers think about a product is worth more than demographic data, but how does this relate to online paid surveys?
The relationship is simple: companies are already paying for data about who their consumers are, why not pay for much more valuable data about what our consumers think?
By offering consumers cash for their opinion, the company is essentially just buying consumer data straight from the source.
Incentive For Consumers to Provide Data
Imagine if a company that you recently purchased a product from, called you and asked if you could take a quick 15-minute survey. Would you take the survey?
A majority of people would definitely give a quick “no thank you” and hang up. Why? Because you’re giving up 15 minutes of your valuable time, get nothing in return, and the company is getting free data.
Companies realize that consumers will not participate in surveys out of the goodness of their hearts. So they turn to the only thing that seems to appeal to people: money.
This is the perfect compromise for the company and the consumer. Consumers are happy that they are getting compensated for their time, while companies are happy with paying for consumer opinions.
So why do you have to sign up at some random website to take these paid surveys?
It boils down to logistics.
Instead of paying thousands of people individually, companies would much rather pay a few dozen websites to distribute their survey. An added bonus is that these independent websites do a much better job at targeting their core demographic than the company themselves.