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I have owned a mystery (sometimes called secret) shopping company since the 80s. The following are questions I have been asked over the years. These questions and answers might give you some insight into going into this business yourself. Obviously these questions are just the tip of the iceberg, but they will provide some basic insight.
Q Please clarify the difference between being a mystery shopper and owning a mystery shopping business.
A. Let me answer by giving the definition for mystery shopping. These services (businesses) are utilized by just about every type of retail establishment to: 1) Monitor how the customer is being treated by employees, 2) Make sure the company/store procedures are being followed by employees.
The store contracts with a secret shopping business to provide them with their services. The secret shopping business then hires mystery shoppers to actually go into their client's stores and then fill out a questionnaire (usually online) on their experience. (Sometimes shoppers are asked to do video shops.) That completed questionnaire then goes back to the mystery shopping business, who reviews/edits it and gives the final report to their client.
If a shopper wants to obtain their own clients (instead of working for other secret shopping services), they then become a mystery shopping "business". However, one can start a mystery shopping business without first being a shopper.
Q What about being able to still provide independent contractor services as a mystery shopper while starting your own local mystery shopping company?
A. A person can still work for other shopping companies while starting their own business only if the contracts/agreements they signed with those companies do not have a non-competition agreement. If your intention is to start your own business, then I would check agreements already signed online and not apply for further jobs with companies that have such non-compete clauses.
Q How much would it cost to set up a mystery shopping company?
A. If you currently have a computer, then you already have the equipment necessary. There are some other costs in the U.S.A., such as a DBA (Doing Business As) license, but these costs are incidental (should be under $100). However, living expenses obviously need to be considered. If you currently depend on a full time job to meet your financial needs, and want to replace that income by starting your own mystery shopping company, then start up money would be needed; the amount of course to be determined by your specific situation. I recommend starting a company part time, around your other obligations, and work your way towards a full time income. With any new venture, I believe it is better to take one step at a time.
Q What about starting a business in the current economy?
A. The economy will always fluctuate. The good news about mystery shopping is that it deals with many different types of industries. A down turn in the economy might effect some industries while not others. Secret shopping allows you to diversify - you can pick and choose the industries you want to approach with your service; from car dealerships, to grocery stores, hotels, restaurants, the list is endless! Any business that deals with the public would be a candidate for your service.
Q Would one need a special license, such as a private investigator license?
A. At this time, the Private Investigator industry is trying to infringe on the secret shopping industry via governmental intervention that forces mystery shopping companies and shoppers themselves to have a Private Investigator license.
This has been successfully defeated in many, if not most, states. Nevada is one current exception I am aware of. Due to the fact that this situation is constantly changing, I do not want to give other specific state information here. However, as stated, you should be okay in most states.
Q How do you go about getting shoppers to work for you, and do you need lots of shoppers before approaching companies to advertise your business?
A. Since there are many ways to attract shoppers, I would not be concerned about getting shoppers ahead of time. Once you are courting a client, and it looks like you might get them, I would begin to look for shoppers.
Since this can be done free over the internet, costs would not be a factor. You can go to mystery shopping job boards to advertise your jobs. If you do get a client and are stuck, you can use the services of a scheduling service. There are quite a few services available, just do a search for "mystery shopping scheduling."
About this Author
For detailed information on operating a successful mystery shopping company, please visit http://www.mystery-shopper-business.com
The author, Shari Joseph, has been in the business since 1985, as a mystery shopping company owner, then author, consultant, and workshop leader. She has helped people all over the world to start and run their own mystery shopping company.
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