Contests are special events designed to attract consumers and give them to opportunity to win something.  Winning could be based on skills or luck (random).

There are different types of contests: Free Entry, Paid Entry and a combination of both known as Sweepstakes.

- Free Entry:  Free entry contests is where you get participants to enter the contest without having to make a purchase.  Participants can enter this type of contest simply by filling out an entry form, liking a post (Facebook), making a comment on a post (Facebook), texting to a specific number, calling in on a radio show, etc.  The methods of entry for this type of contest is only limited by the choices you present to your customers.

A Free Entry contest could come at some cost to the business.  For example, if you use a radio station to promote your Free Entry contest, you will have to pay the cost of promoting the contest to that radio station.

To promote your contest at very low cost you should consider using free resources such as Social Media (Facebook, Twitter, Pinterest, YouTube, etc.).

- Paid Entry:  Paid Entry contests requires the individual to pay (in some way) to enter the contest and have a chance to win.  To enter these type of contests the individual will may have to purchase an item, sign a contract or subscribe to a service. 

Paid Entry contests don’t draw as many participants as the Free Entry contests unless something of enormous value is at steak.  People who enter Paid Entry contests want to know that the financial risk they undertake is worth the payoff and that they have a good chance to winning.

- Sweepstakes:

Seepstakes is another form of contest in which individuals can enter the constest by making a purchase or not making a purchase and having an equal chance to win.  Prizes are awarded to the winners.  Winners are chosen at random and not based on skills.

By law those who make no purchase and those who make a purchase to enter a contest must have an equal chance to win.

If you’re going to run paid sweepstakes you should fulfill all legal requirements for doing so.  Running paid entry sweepstakes will bring enormous legal scrutiny.  Also, sweepstakes winners should not be required to pay any kind of fee to receive their prizes.

Some well known sweepstakes includes Publishers Clearing House and Reader’s Digest sweepstakes.

Sweepstakes Laws:

- An Introduction to Sweepstakes And Contests Law by Steven C. Bennett

- The Statutory Provision Regarding Contests as Set Forth at Section 508 of the Communications Act of 1934

- The Deceptive Mail Prevention and Enforcement Act took effect on April 12, 2000

- The SBA

Contest examples includes the following:

Games is a form of contest that you can run.  Games can be played based on free or paid entry.  You should stay away from requiring paid entry to pariticipate in games.  In the U.S. where eligibility is based on purchase, games are subject to rigid legal scrutiny.

Games can be placed at your physical retail location, at your online eCommerce site, at Tradeshows, etc.  The idea is to get customers to play the game and be enticed to make a purchase. 

To make games an effective promotional tool you have to devise the game with your product or service in mind. 

These are some examples of games that you can run.

Spin the wheel:  This is where the contestants spin the wheel to win the item selected when the stops spinning.

Toss & Win:  This is where the contestants toss a ball at objects in order to knock down a specific target in order to claim a prize.

Scratch off Cards:  Scrratch off cards lets the player win a prize if the scratch off spot reveals certain numbers.

Collection of game pieces:  Collection of game pieces lets players win by assembling the right kind of game pieces.

Here are some examples of social media (Facebook) contest Ideas:

1.  Like to Win:  This is where you ask fans/followers to like a certain post in order to enter the contest and have a chance of winning.

2.  Comment to Win:  This is where you ask fans to leave comments in order to enter and have a chance to win the contest.  You can also ask them to leave a comment in response to a specific question.

3.  Like & Comment to Win:  This is a combination of the Like contest and the Comment contest.  Fans/Followers must leave a Like and a Comment on the post in order to enter and have a chance to win.

4.  Caption Contest:  This is where you post a picture and ask Fans/Followers to post a caption to go along with the picture.  You can then pick the winner yourself or ask fans/follwoers to Like comments and pick the one with the most Likes.

5.  Fill-in-the-Blank:  You write an incomplete sentence and ask Fans/Followers to complete it.    You can then chose the best one and award the winner.

6.  Photo Contest:  Ask Fans/Followers to submit pics which you will post on a specific day and ask Fans/Followers to Like.  Select the winner based on the most Likes.

7.  Questions & Answers (Q&A):  Post a simple questions and ask Fans/Followers to submit the right answer.  Select the winner that provide the right answer first.  An example of a question could be “What will the score of tonight’s game be between team A and Team B?”.