5 Things You May Not Know About Mystery Shopping

Posted: 13 Sep 2011 04:00 AM PDT

Everyone knows that mystery shopping is a hot topic for anyone wanting to earn some extra cash. I've done it quite a bit over the past 10 years, and I admit that it has gotten me through some tough times. There are some things about the profession that aren't well-known, however, and they are important facts that you will want to consider before starting out. Here are some of the sneakier statistics from someone who knows:

1. You Need Cash to Start Out. If you don't have a penny to your name or any room on your credit card, you likely won't be able to sign up for your first mystery shop. While signing on with a company is free, you will actually need to pony up your own dough for that first purchase, and wait patiently for reimbursement.

2. You Don't Get to Choose Everything. Yes, you can pick to do a shop at a burger joint in your area. What you order off the menu, however, may not be up to you. I remember doing a series of shops with a fast food joint that had me ordering fish sandwiches for six straight assignments (and I don't like fish sandwiches). Those hoping to use their mystery shopping assignments as a way to score free meals will need to remember this tricky truth.

3. It Can Be Awkward. If you don't have a good poker face or hate telling "white" lies, it may be difficult to do this job. Some shops will have you make up a scenario for your shopping trip, one that may be completely different from your actual situation. Likewise, fast food shops may have you place an order inside the store, then make a purchase in the drive thru just minutes later. (Try coming up with a reason for ordering two identical value meals from different locations in the same store!)

4. Payment Can Be Low (and Slow) – If you are hoping to earn anything more than $8 – $20 per shop, this is not the job for you. While it's possible to get a few shops done in one hour, the drive time between assignments and the paperwork make it hard to get much more over minimum wage in some areas of the country. Couple that with the fact that many mystery shopping companies are very far behind on their payments (some owe shoppers from over a year ago), and it's not exactly quick cash.

5. You Can't Expect the Best – The major difference between a regular paying customer and mystery shopper is big; a mystery shopper has to take the level of service that they get – with no exceptions. If you find your toilet to be sluggish or the sheets to be dirty in your hotel room, it's something to be noted on your feedback forms. Unfortunately, you likely shouldn't switch rooms or ask for a remedy of these items; it's just one of the perils of doing the job (and one of the reasons why your stay is fully comped.)

If after reading these inside secrets, you are still interested in being a mystery shopper, I say, "Go for it!" Check out a reputable site like MSPA.com or research companies through Volition.com. A little extra cash can be had, but, like any other job, you will definitely work for it.

Is Your Income Earned or Passive?

Posted: 13 Sep 2011 04:00 AM PDT

You know that income is a necessity in today’s world. We need some amount of money if we expect to have our needs met. When most of us think about income, though, we think about active ways to make money. However, there are those who want to transition from earning their income to just letting it come at them. Passive income is the goal for many. Here is a look at some of the differences between earned income and passive income:

Earned Income

Most of us are depressingly familiar with earned income. You have to be active in order to make money in this way. You earn your income by working at a job, by being self-employed, or by engaging in side hustles. Any time you have to work for your money, it is earned income. This is by for the most common type of income for many of us.

Passive Income

On the other hand, passive income is money that just sort of comes to you. You don’t have to do a lot for it; you just see an income stream. For the most part, passive income includes such items as dividend income, interest income, rental income, and income from monetizing your web site. Even royalties are often considered passive income.

It is worth noting, though, that some insist that there is no such thing as truly passive income. After all, if you expect to make money from dividend stocks, you have to go through the mental work involved in research and the actual act of choosing and buying stocks. Royalties come after you have completed a creative labor. Rental income may come regularly, but you will have occasional duties to attend to, and some work is involved. Building up a web site so that it provides you with an alternative income stream requires time, effort and patience.

However, the main characteristic of passive income is that it’s different from your job, and that it requires less active work. Instead, the point is to cultivate a situation in which you begin receiving income from a specific source without having to do a great deal of work to maintain it. Once the initial setup is complete, staying on track only requires a small amount of effort.

Portfolio Income

Even though portfolio income often falls in the category of passive income in most minds, it is important to recognize that you will need to break out this type of income for tax purposes. Investment income, and interest income, are considered portfolio income, and not specifically listed as passive income when it comes to taxes. However, you can, in your personal budget, continues to treat portfolio income as a passive income stream. Just make sure you understand the reporting rules associated with it come tax time.

Bottom Line

If you want to shore up your finances, you can do so by cultivating some passive income sources. While it might take some time and planning to build up these sources of income, it can be worth it. If you plan it right, eventually your passive income can exceed your active income.

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