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Investing
ONLINE SURVEYS
BABAR ZAIDI
I
t seems so incredibly simple that you
wonder why people sweat it out to
make a living. Just a few clicks of the
mouse every week can earn you a
handsome income. Online survey
schemes are the new El Dorados for anyone
looking for easy money. You need to take
just two online surveys comprising 10-12
questions to pocket up to `900 a week. The
more surveys you can handle, the more
money you can earn.
If online survey companies are to be
believed, millions of Indians are making
bushels of money through this innovative
multi-level marketing model. “We have
almost 1.3 million panelists (members)
working for us,” says Vivek Gautam, chief
marketing officer of Speakasiaonline.com,
a Singapore-based market research compa-
ny that started operations in India about a
year ago. That is almost 1% of the total
Internet population in India. At least four
other online survey companies are active in
India right now, drawing all kinds of
fortune hunters (see table).
Meet Sudhir Sharma, an employee of a
public-sector insurance company in Delhi,
who has been in the online survey business
for the past 2-3 months. “It’s a great RAJ
opportunity to make money in your free
time,” he says. Police officers, corporate
managers, housewives, unemployed youth,
school teachers, even IT professionals, are
clicking away to glory every week.
Making losses The lure of easy lucre makes people ignore the obvious red flags in a pyramid scheme. Here are
some recent examples where the Indian investors have been cheated of their money.
Where the money The Mirzapur-based Based in Surat and The company is Promoted by the The Moradabad-
goes: The joining fee company was set up set up in 2006, it is promoted by the Singapore-based based company is
is used to buy a
in February 2010. one of the oldest Visakhapatnam- Haren Ventures, it the latest entrant
subscription for the
training material and Claims to work for online survey based Green Prithvi started in May 2010. in this business. It
other costs, including Canon, Godrej, companies. It is Farming, which has Claims to have ICICI was set up in
referral payment. Casio, Panasonic promoted by the been in operation Bank, Bharti and December 2010.
and Globus. Pratibha Group. since 1996. Nestle as clients.
Where’s the catch? You need to pay a join- principles of multi-level marketing, none of surprisingly candid about the entire Incidentally, the Speakasiaonline.com
ing fee to become a panelist. The money the survey companies is a member of the business. “Invest only if you can take the website has generated a lot of interest in the
goes into buying a subscription for the train- Indian Direct Selling Association (IDSA), a risk because there is a possibility that you country in the past two months. According
ing manual and towards other costs. The self-regulatory body of network marketing might not earn any money,” he said. He also to cyber analytics site alexa.com, it is the
person who referred you also gets a cut. companies. All big direct selling companies, gave a very useful tip. “Go for companies 70th most visited site in the country today.
However, the income projections by the sur- including Amway, Oriflame, Tupperware that have just started out. Only then will you Most of the people eliciting interest in the
vey companies suggest that the joining fee and Avon, are its members. IDSA secretary- be able to recoup your investment and earn company’s website are youngsters aged
can be recouped within 8-10 weeks. general Chavi Hemanth says the well. If the company is 2-3 years old, it may between 18 and 24 years.
If you join a survey company, the going organisation studies a company’s business be nearing saturation level,” he said. In oth- So, should you become a member of any
gets better if you get others to jump on to model thoroughly before admitting it as a er words, if you join a Ponzi scheme when it online survey scheme to earn money on the
the bandwagon. For every new person you member. “If there is any ethical problem or is in its last leg, you stand to lose money. side? Ideally, no. But if you do want to give it
bring in, there’s a referral bonus waiting for legal infringement, the company cannot be Why are these companies paying so much a try, opt for the one you know the most
you. You also earn rewards for every survey a member of the IDSA,” she says. for so little work? “These surveys are about, the one that is most forthcoming
taken by the members you rope into the A company will not make the cut if its conducted on behalf of our corporate with details of its business, and the one that
scheme. business plan violates the Prize Chits clients and very large market research agen- is the least costly to get into. Use the online
It is this feature of online survey and Money Circulation Schemes cies,” says Gautam. “The survey results are advantage to keep in touch with other
companies that makes them (Banning) Act, 1978. The Act bans used in preparing commissioned industrial members and make sure that you know
appear similar to Ponzi schemes. Gold and silver any scheme that promises to pay research reports which are priced at lakhs about the company’s whereabouts.
stocks to
These are plans in which the buy now money for the enrolment of mem- of dollars.” He says some large Indian Is there an investor grievance redressal
member earns by enrolling more Page 12 bers into the scheme. corporates, including ICICI Bank, Bharti mechanism? No. Such schemes do not come
people in the scheme. As more Search on the Internet and you Airtel, Bata and Nestle, have got surveys under the purview of the Securities and
people come in, the older members will find hundreds of complaints done by Speak Asia Online. Exchange Board of India (Sebi) or the RBI.
get paid from the joining fee of the new filed by irate members who have lost Some market research companies, The Finance Ministry too doesn’t want to
members. This continues till no new money in survey companies. But for every however, deny being Speak Asia’s clients. get involved. An e-mail request to the officer
members can be made and the scheme complaint, there are three posts by other Balendu Shrivastava, group business in charge of vigilance against scams and
runs aground. While such schemes have members singing their praises and director of IMRB International, says almost fraudulent scheme went unanswered.
been in operation for a long time, the narrating how much they have gained from all surveys by the agency are done by
Internet has helped them expand their these moneyspinners. surveyors appointed by IMRB. “In a few
catchment areas. In recent time, lakhs of Posing as a wannabe investor, we called cases we seek out specialisation of our Please send your feedback to
investors have lost money in this manner up one of the members of a survey empanelled partners,” he says, but adds etwealth@indiatimes.com
(see box). company. He’s an IT professional, earns a that they have not used Speak Asia as a
Though their business is modelled on the handsome income from his job and was partner.