What to Know About Running Contests

For many businesses, a contest is a perfect way to reward loyal customers and bring in new traffic. Best of all, you don't have to be a huge company with deep pockets to start a contest. However, there are some legal matters you need to be aware of before diving into the contest arena. Keep these guidelines handy before considering launching your contest.

Make it a sweepstakes or contest.

Sweepstakes and contests might sound like the same thing but in the legal realm they are quite different. A sweepstakes is when a person merely "enters" to win something. That can be as simple as submitting an email address or sending a text. On the other hand, a contest involves some sort of skill like writing an essay. You'll want to make that distinction because each one comes with a specific set of legal guidelines/restrictions.

Make a list of rules.

You'll need to make a list of rules for your contest and then adhere to those rules. These rules should cover the typical items such as deadlines, eligibility requirements and rewards. They should also cover every possible scenario in terms of winning and losing. In other words, don't leave anything to second-guessing.

Make it region specific.

It's easy if you have a small neighborhood business and want to run a contest for your customers. You would only have to look up the guidelines as it pertains to your city and state. However, if you want to go national or international you're going to need to do a lot more research. This is why many contests have built in restrictions as to who can play.

Make sure you understand the online rules.

Obviously, the best way to reach the most potential customers would be with an online contest but that will open the door to a whole new range of possible restrictions. You might think it's a good idea to run a contest in order to get an expanded email list, but in reality you could be prevented from using those newly acquired addresses. Make sure you follow the rules especially when there is the potential for minors to be exposed to your contest.

Make sure you get a good attorney.

Suppose your contest involves printing "golden tickets" that a customer needs to find. What if the printer messes up and everyone gets a golden ticket? That scenario actually happened to Kraft Foods back in 1989 when suddenly all of the contestants in a contest were claiming brand new cars when there was only supposed to be one winner. Since then the "Kraft clause" was instituted to cover those kinds of human errors. An experienced attorney who has crafted rules and regulations for a contest will know all about those clauses and that's who you should be retaining to help with your contest.

When it comes to contests, you want to make sure your company comes out as the real winner!

Win Bigger Lead Generation and Stronger Branding With Contests

Getting the word out. That’s what every business, big or small, needs to accomplish if they are going to achieve success in a competitive marketplace. Having access to social networking sites and email lists have changed the very nature of business. No longer are companies depending on print ads or traditional media outlets to get the word out about their products. However, just because a business has access to those networking and email tools doesn’t mean they are always being utilized properly.

A typical web surfer has a very limited attention span. That’s why they need to be hooked through added incentives to stay longer on a website and come back again. A fun contest can earn your business bigger lead generation and stronger branding possibilities. A contest also affords the opportunity to optimize your marketing dollars for the maximum return on investment. Consider these benefits for creating contests:

Contests Generate Buzz

Even a local business who offers a special prize package of goods or services can benefit from a contest. The very word “contest” invites customers to take a second look. “What can I win?” and “How do I play?” are the two primary concerns. If a business can provide engaging and simple answers to those questions the chances increase for a wide participation among potential customers. Bottom line: everybody loves to win. Why not tap into that fun for your own business?

Stronger Branding Potential

If you embrace the “getting the word out” philosophy of attracting new customers then a contest can serve that purpose on many levels. You don’t even have to offer a prize that is associated with your business. For instance, a dry cleaner could offer a free iPod in a customer raffle. If that brings in new customers and generates new business then the prize is secondary. You could also offer an essay contest asking why your product makes a difference in someone’s life. This is a perfect way to build up traffic to your site and create a valuable log of positive testimonials and reviews. All of that is going to improve the brand.

Building Big Lead Generation

Sharing an email address is as commonplace as handing out business cards. With a contest you have the potential to gather a huge influx of email and other data that will be in your control. Think of it this way: every person who enters your contest with an email address is a potential new customer that you can later target with advertising. A growing lead list is gold!

Before diving into a contest for your business you should check out all social media rules and regulations as well as any federal or provincial laws regarding these types of activities. As long as you’re working within those guidelines there is no reason why your contest can’t be an ongoing event. Consider the millions of lottery players who happily fill out their tickets every week for a chance at the big prize. Yes, everybody loves to win. Now your business can cash in on that attitude with its own lead generating and brand building marketing tool.