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“Enter to Win!” Promotion through Contests and Sweepstakes
by: Marvin Nolan Moore
“Enter to Win!” You have probably been exposed to these words a million times. And that is exactly the point: You have seen these words so many times because this type of promotion works. In fact, sweepstakes and contests on the web have a better response rate due to the ease of submitting information. A person checks a few boxes, enters an e-mail address and submits the form.

How can a contest or sweepstakes promotion help you? Let’s explore.

Reasons for Offering a Contest or Sweepstakes Promotion

There are many uses for promoting a contest or sweepstakes. You could require participants to give you certain information. You can gather demographic, psychographic or buying-behavior statistics. Maybe you want to simply create some traffic to your web site. People may be asked to sample products, services, or whatever you want, depending on your goals and reasons.

What Will Be Given Away?

Do you sell products, provide services, or what? Are you going to give away items, services, cash, or coupons? What do you have to offer that will entice people to enter your contest? If you are planning on giving away a free pen, forget it! People wouldn't even waste their time entering a contest if a pen is all you are giving away. Make your prizes worth the effort of entering the contest. Try to make the prize(s) worth at least $10. Then, decide how many prizes, services, etc. to give away in the contest or sweepstakes.

Whom Are You Targeting?

Define who your target audience is. Whom are you hoping will enter the contest? Are you targeting housewives, businesspeople, students or professionals? Are you going after adults over 30, kids, teenagers or senior citizens? Next, define the optimal places where you can reach the target audience. You will certainly need to market your sweepstakes and contests, just as you would any other aspect about your business.

Where Are You Going to Advertise the Promotion?

Are you going to advertise your contest in classified ads, e-mails, newsgroups, or banner ads? If you’re going to start a banner campaign, make sure you target the web sites that are going to attract your target market. If you're handing out free birdcages as a promotion, consider advertising on a pet-supply web site -- don’t advertise on a punk rock web site, even if it is your favorite. If your promotion is featured on a web page, register the page to all major search engines. If your promotion effort is only going to be available for a certain amount of time, notify the search engines.

What Are the Rules, Requirements and Exemptions of the Promotion?

What are the limitations and restrictions? Who can apply and who can’t? You will need to post all pertinent information about your contest or sweepstakes, including:

 

  • Who can enter?
  • What are the prizes?
  • How many prizes will be awarded?
  • How are people expected to enter the contest? By phone, e-mail, letter, fax, fill-out web form, etc.?
  • How will people be notified if they win?
  • Are you going to post the winner on your web site?
  • When is the promotion over?
  • How many times may they enter the contest? Daily, weekly, monthly, as many times as they like?
  • Can prizes be given away to people outside of the country?

All of these questions need to be addressed and posted on your web site or in your e-mail promotion.

What Are the Legal Issues Concerning the Contest?

There may be some legal ramifications concerning the contest. In some states, certain cash awards or prize values may be limited, or they may have to be registered in a particular state.

If you are giving away cash in the U.S., anything above $500 must be reported to the IRS; and a 1099 tax form must be filled out and submitted. Make sure you check out the laws thoroughly.



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