Startup cost
$25k–$250k
TRUiC Business Ideas
How to Start a Mystery Shopper Business
Decision Snapshot
Mystery Shopper
Idea Score
41
Profit margin
6%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Full time
Part 1 - How to start a Mystery Shopper business - Background
Mystery shoppers (sometimes known as secret shoppers or anonymous evaluators) visit different businesses to ensure staff is following protocol. A secret shopper business can greatly increase the level of visibility into the level of quality in any given business, and can even save the company money a lot of hassle and money. For example, if a shopper enters a retail store and has a difficult time receiving service, this issue can be addressed immediately. Or if a young person walks into a bar and isn’t carded, then this could spell huge fines for a business later on down the line.
Our guide is in 3 parts:
- Part 1 - How to start a Mystery Shopper business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a mystery shopper business?
If you already have a smartphone, a computer/printer, and a car, then that’s usually enough to get started. You may also want to invest in a better camera than the one that’s on your phone to get more detailed photos. Your state may require you to get a private investigator license before you start, with fees varying from state to state. You may wish to hire employees at the beginning, but this doesn’t necessarily require any money to start. Employees are generally compensated only when they visit a store, and they’re compensated by the clients as opposed to your business funds.
What are the ongoing expenses for a mystery shopper business?
There are few ongoing expenses for a small mystery shop owner, though needs can grow substantially if you add more complex data analysis.
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Equipment costs
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Data software
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Stores
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Office space (potentially)
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Employee salaries
Who is the target market?
The best clients are owners, CEOs and Presidents with multiple stores or locations. These can be for commercial businesses, healthcare companies, even potentially government services. Any decision-maker or owner who cannot monitor all activity happening under their umbrella is a potential candidate.
How does a mystery shopper business make money?
Mystery shop owners make money by charging clients a set fee for sending out a quality shopper to the site. The secret shopper needs to be able to accurately record the good and bad parts of an interaction with every employee, as well as document other details about the general quality of their time at the location.
How much can you charge customers?
It truly does depend on the nature of the site visit. If it’s a hotel stay, then the shopper will be spending a significant amount of time and energy on the assignment. Some owners may charge up to $30 flat rate for a simple visit to a fast food place (plus the cost of reimbursement). Others may charge more based on the details of the report they prepare.
Companies should be charged more if they require specialized knowledge. For example, you may charge $100 if the site visitor needs to understand specific state rules about cleanliness or they have to memorize a script before entering the premises. Check your competitors rates for the types of visits you would like to conduct to determine the benchmarks.
How much profit can a mystery shopper business make?
Considering the overhead is so low, the profits can be extremely high. If you’re starting out on your own, you can make almost 100% of the profit (minus the cost to maintain equipment). In addition, the odds are that you already have a phone plan and a Wi-Fi connection, meaning the maintenance fees will be reasonable.
How can you make your business more profitable?
Companies now use mystery shoppers for far more services than shopping. If you have the right employees with the right skills, you can perform audits or odd jobs like merchandising or testing the interview process. The best way to increase your services is to find out what companies are looking for. Ask what type of services a company needs to maintain their quality, and then do everything possible to fulfill the client’s requests.
Day-to-Day and Growth
What happens during a typical day at a mystery shopper business?
Owners will need to find and conduct business on a regular basis.
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Cold call businesses to gain clients
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Present statistics and past successes to market services
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Conduct site visits or hire employees to conduct visits
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Prepare reports for business owners about the details of the visit
What are some skills and experiences that will help you build a successful mystery shopper business?
Salespeople will do well in this business to build clients. You’ll need excellent verbal and written communication skills, as well as a good sense of what customers are looking for at each business they frequent. A person visiting an electronics store may be much more concerned with the knowledge of the employee rather than whether or not they’re greeted with a huge smile when they walk through the door. Owners of a secret shopper business will also need to be flexible, as certain businesses may make odd or unusual requests about when they want to be visited, how quickly they want their reports, or the specifics of what they want done at each business.
What is the growth potential for a mystery shopper business?
There are many potential clients who will need this service, but you may be limited by your geography. For example, if you’re not in a major city, then you may only have so many businesses in the area that require mystery shoppers. The more you can prove you can genuinely strengthen other people’s businesses, the more likely you are to grow. Become reputable enough and you can expand your business to other locations, hiring employees in other parts of the country to conduct site visits.
What are some insider tips for jump starting a mystery shopper business?
The owner of a secret shopper business may want to do some work for free at the beginning, though you always want to tell the owners your normal rates before offering this. Owners need to be incredibly precise when it comes to presenting and selling their services, and ideally, they should be able to give charismatic presentations. You will also want to prepare detailed contracts for each and every client you have, stating the length and terms of service. Consider joining the Mystery Shoppers Providers Association to provide formal credibility to your business.
How and when to build a team
It isn’t strictly necessary to start off with a team as you can do the first few visits yourself if you wish. As you build up your base, however, you will need to find employees who can pitch in. While mystery shopping isn’t the most demanding job in the world, it does take time and effort. Your employees will also need to have excellent communication skills, and they’ll need to be comfortable with saying negative things about unsuspecting employees (and even potentially getting them fired).
Should you land a large client with many locations early on, you should definitely hire several employees. Otherwise, you will be recognized quickly and your services will become completely useless to the parent company. Never charge employees to sign up for your mystery shopper business, as there is a lot of noise around scams in this industry. Becoming a member of the Mystery Shoppers Providers Association can help provide legitimacy to your business too.
Part 2 - Is a Mystery Shopper business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Mystery Shopper business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Mystery Shopper Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Mystery Shopper business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.