It isn’t easy to judge the merits of an idea, especially if it concerns a product or service that seeks to cater to the needs of many people. We’ve all seen our share of product fails that seemed perfectly plausible in theory, but for one reason or the other, failed to deliver because their companies failed to account for the opinions of their target demographic.
Even the biggest companies like Google have made that mistake in the past. You probably do not even remember Google Glass anymore, but we’re pretty sure its developers still do.
That’s why focus groups are so important for companies. It can save them from making such costly mistakes.
It would be far smarter for them to invest in focus groups first. The question is, what’s in it for us? How much do focus groups pay?
Let’s talk about the different factors that can affect focus group payment, how much they usually pay, and other forms of compensation you can expect.
The Factors Affecting Focus Group Payment
Different factors affect how much and what type of compensation you’ll receive from the market research companies and businesses that value your opinion. The most common ones are as follows:
1. Types of Focus Groups
The first factor lies in the type of focus group you are going to participate in. There are two:
- In-Person Focus Groups
Focus groups get classified according to how the meetings get conducted. As the name suggests, in-person focus groups are those done face to face.
They are usually done in a purpose viewing facility. It is a location specifically designed for market research. It has a variety of recording and research equipment.
However, don’t be surprised if another location gets chosen as well. It is not uncommon for a market researcher to go with a different venue, depending on the product. For instance, food establishments typically hold their in-person focus groups on their own turf.
Most small businesses, especially those who want to conduct their focus group discussions on their own, will typically choose other venues like cafes and shared office spaces.
- Online Focus Groups
Focus groups can also be held online. This method has grown quite popular in light of the recent pandemic.
Again, as you might have guessed already, these are focus group discussions done via online chat. You’ll normally receive a link to gain access to the group chat prepared by the market researcher.
Most facilitators will require a video conference. You might also need to download a particular software or mobile application ahead of time.
Which Pays Better?
Each focus group will be different. There will be online focus groups that will pay higher than in-person sessions.
In my experience, though, market research companies and businesses usually compensate for the inconvenience of going to these discussions in person.
2. Target Demographic Required
There are target consumers that are rarer than others. Case in point: it is more challenging to find participants willing to talk about their experience flying first class to a specific country than those who play mobile puzzle games.
The earlier group of people are also more challenging to convince to participate in a focus group discussion. That’s because they are not motivated by money and are often quite busy. Thus, it is not a surprise if certain demographics are better compensated than others.
3. The Length and Number of the Sessions
An average focus group discussion typically lasts for one to two hours. The longer the session is, the higher your participant rate will be. Many focus group discussions also take multiple sessions before the market researcher deems the information substantial to meet their objectives.
4. The Product Itself
Finally, companies are likely to invest more in focus group discussions for products and services that they intend to offer at a higher price. For instance, it is not surprising for a luxury car company to compensate their focus group participants higher than, say, a school supplies manufacturer.
How Much Do Focus Groups Pay?
The compensation given to focus group participants is usually referred to as an honorarium or incentive. That means the payment is not always in the form of cash.
If it is, you can expect to make from $20 to $200 per session. As mentioned, this will highly depend on the factors I have shared above. While it is rare to stumble upon focus groups that pay as much as $500 for an hour of your time, believe me when I tell you that they are out there.
Here’s a pro tip on how to find them: Just keep participating in focus group discussions. The more experience you gain, the higher the quality of information you can provide.
Market research companies will also start to become more aware of your existence and what you can offer. They’re more likely to recruit you to participate in higher-paying focus groups as well.
Aside from that, it will be easier for you to navigate through this world, which will further increase your chances of finding groups. Groups that not only pay higher but are also more enjoyable to participate in.
How Will You Get Paid?
Most market research companies will pay you in cash, especially those who asked you to participate in in-person sessions. Payment for online focus group sessions is usually sent through Paypal, Payoneer, and other similar digital payment platforms.
Other Forms of Compensation
Some market research companies also pay in the form of gift cards, credit card points, and other special perks. For instance, I’ve earned hotel accommodations for three days by participating in a focus group discussion.
My girlfriend and I were able to enjoy a long weekend, lounging by the pool, with meals included. That’s all because both of us agreed to participate in a three-hour discussion for a travel club membership plan.
How To Earn More by Participating in Focus Groups
Want to increase the rate and/or quality of your focus group earnings? Here are some tips I’ve learned along the way:
I understand why a lot of first-timers think that lying in their surveys will make them more “flexible” to participate in more focus groups. Well, let me tell you now: it doesn’t.
The best market research companies (those that pay top dollar) can easily see right through it. It will even lead them to think that if you have lied in a simple survey, then you will most likely lie your way through a focus group discussion.
Keep this in mind: market research companies don’t need you to tell them what you think they want to hear. Instead, they want you to be frank and just speak your mind. To make matters worse, it can even ruin your chances of landing a spot in more specialized groups because being a pleaser makes you seem like you’re just like everyone else.
Thus, my advice is just to be your unique self and let the researchers decide where to place you.
Focus group opportunities get updated daily, so it’s crucial to act fast if you’ve come across something you are really interested in. It only takes a few minutes to apply anyway.
You’d want to keep your lines open as well. Market researchers hate wasting time.
Not to mention that there are a lot of people who want to participate in focus groups. If you miss a phone call or fail to respond to their message promptly, they will simply move on to the next interested participant.
I have lost count of how many times I have missed potentially high-paying opportunities because I failed to return a call on time.
Join Multiple Market Research Platforms
Most participants will only sign up for one or two of them. I say, join more.
As long as they’re legitimate, then I can’t see why you can’t sign up for multiple sites at once. It will diversify your options and get your profile to more market researchers.
If you do decide to join multiple platforms, then have the wisdom of restraint. Don’t bite off more than you can chew. Settle on a sweet spot. Mine is five.
Think of Your Online Profile as a Bait Trap
Freshen up your bait constantly to make sure it doesn’t go stale. Always keep it complete, accurate, and updated. I have also made a habit of checking my profiles twice daily to see if someone triggered it in the form of an invite.
Just Have Fun!
You just need to accept the fact that your focus group earnings will probably never reach a point that it can replace your day job, but hey, that’s okay!
If I hadn’t participated in focus groups, I wouldn’t have made $1500 of extra income in the past three months.
I probably wouldn’t have accumulated the points I spent to purchase the sweet juicer I have in my kitchen. Or I wouldn’t have gained a one-year premium subscription to my favorite streaming channel. The perks are not much per session, but they do add up. Good luck!