Maybe the question pops into your head when you first start searching, browsing through dozens of different sites, all promising oodles of money. Or maybe it comes when the first points hit your account, and you begin to wonder. Or maybe the realization sets in later, during a lull in your fifty-seventh survey. No matter when it happens, once you start taking surveys, you’re bound to ask: how the !$*& are they making any money??

It’s a good question to ask. From the looks of it, it doesn’t seem like these sites should be able to do that. Not only do they pay you for every survey that you take, but you’ve also seen their ads, websites, graphics, and more. Take it a step further, and you realize there has to be people paid to write those surveys, programs to distribute them, companies to organize the ads, and services to keep all of this running smoothly.

At first glance, you might run to the easiest, simplest answer: fraud. Clearly, the only way companies this large could make any money with all these costs would be to steal your information. And while that’s definitely possible for shadier companies, it’s not the full answer. In fact, given that most survey companies are reputable, accredited, and BBB-approved, the fraud answer only works for a handful of companies. So how do these honest companies really make money?

Follow the Money

The answer is actually simpler than you think. In the business world, and marketing in general, companies are always seeking the best ways to sell their products and services. This is where market research comes in. Market research is simply “[t]he action or activity of gathering information about consumers' needs and preferences, esp. as regards a particular product or service” (Oxford English Dictionary). Basically, it’s how companies find out what their consumers like and dislike, what they want more of, and what they would change. Sound familiar?

There are many different ways to conduct market research. Some analyze buying trends, while others might scan social media for keywords related to their product or service. Many employ the use of surveys to ask direct questions to their consumers. Surveys are a great way for these companies to get the information they want. They can ask specific questions related to whatever product or service they want more information on, such as packaging, ease of use, overall likeability, and more. They can also target specific demographics that they might be trying to reach out to or learn more about, from regional differences to different age groups, nationalities, and industries.

In all cases, market research can be done by these larger, multinational companies. However, it is usually much easier, and much more effective, to outsource this work to companies that specialize in it. These market research companies will do the work of asking the right questions, finding the right people, compiling the data, and sharing it with the company so that they can change their product and make it better for consumers. In some cases, these companies will want to run surveys to ask their consumers questions directly. Some market research companies have their own panels, or groups of people willing to take surveys, but many don’t. In turn, just as larger companies outsourced their research to these market research companies, so too do the market research companies outsource surveying to survey companies. That’s where we come in.

The Survey Process Breakdown

In short, it goes like this: if a company wants to know how consumers view their products or services, they seek out a market research company. This market research company will then conduct research, by questioning customers, studying their habits, and analyzing trends. They may also conduct surveys, in which they will ask many questions on behalf of the original company. This will lead them to seek out survey companies.

The survey company will then take the questions that the market research company wants answered for their client and write them into proper survey questions. For example, while the market research company might want to know how a product should be branded, a survey company will ask specific questions about the branding to consumers, like their feelings on the shape of the box, the color of the logo, and so on. The two firms will go back and forth on the questions to make sure that the right ones are being asked, and once both companies are satisfied with them, the survey can be distributed to the panelists.

The survey company then takes on the research, making sure that panelists take the surveys and are paid for their efforts. They clear out cheaters, check demographics, recruit panelists, and ensure the survey process is running smoothly for everyone. Then, once the survey is complete, they compile the results and send them back to the market research company. The market researchers then take the survey data, and any other data they have collected during their study, and bring the results back to their client. The research is then finished: the original client pays the market research company, and the market researchers pay the survey company.

Overall, it is a simple, straightforward process that works like any other company. Of course, it doesn’t always work this exact way. Sometimes, the market research company is removed from the equation altogether, and it’s just a survey company and their client. Other times, the clients might not know exactly what questions they want to ask, and leave it up to the survey company to decide that. Surveys can vary widely in length, in substance, and in who takes them. No matter what, though, you can rest assured knowing that the survey process is honest, straightforward, and crucial in making your favorite products better.