Sweepstakes are a fantastic opportunity for online business promotion without the need for blatant advertising. Many people, though, aren’t exactly sure what a sweepstake is, and it is often confused with a contest. There are benefits to both sweepstakes and contests, but the format of each are actually very different.
You see contests and sweepstakes everywhere. Often, because they offer the same sorts of awards — Win 10,000! Enjoy two free weeks of luxury in the Bahamas! — you might need to do some reading of the details before you know whether what you’re entering is a sweepstake or a contest. Both offer a relatively small chance of claiming the prize — although by entering one, your chance of winning is significantly higher.
If you’re planning to host a sweepstake, it’s incredibly important that you understand the difference between a sweepstake and a contest. Take a look at the below info to ensure you never get the two confused again:
Sweepstakes
Sweepstakes are online competitions that are free to enter, as state law determines that charging money for entry would make them a lottery, which is illegal unless state-hosted. It’s important that you understand all of the laws when comparing sweepstakes and contests, so read up or contact somebody in the know if you’re unsure.
Sweepstakes offer up a big prize to the winner, who — here’s the important bit — is determined by random choice. This means that the sweepstake is open to all entrants, with usually very few limitations (although entrants may have to live in the host’s country). This generally brings in a bigger audience, especially as there is very little an entrant has to do to be up for winning the prize, aside from filling in their details and playing the waiting game.
The length of time a sweepstake runs for is determined in advance, and the closing date and winner’s announcement date should be written clearly somewhere on the entry form for entrants to see. Sometimes, sweepstakes may offer a greater chance at winning to entrants in exchange for promotion. So, for example, entrants who share the sweepstake on social media, tagging the relevant host, may be entered twice into the sweepstake as an incentive.
In terms of prizes, a sweepstake will usually offer something of high monetary value, which will usually be in promotion of the host business. A good prize to offer is a business’ bestselling expensive product that has high appeal to a wide audience. This should draw in the biggest crowd, giving the sweepstake a higher coverage.
The benefits of running a sweepstake are:
- In general, you should receive a higher number of entrants as there is less effort on the entrant’s part to apply. Usually, an entrant will only have to submit their basic details to be in with a chance of winning the prize.
- A sweepstake tends to be far simpler to set up than a contest, as it doesn’t need to determine stringent rules for the applicants (such as how long an essay should be, or how many photographs should be entered). This is a more time-effective option for businesses that are more interested in the marketing benefits of a sweepstake.
- Sweepstakes have a wider appeal, as anyone can apply, and according to the law, entry is free. This means the sweepstake is more likely to be shared on a much larger scale than a niche contest will.
- Sweepstakes are a fantastic opportunity for promotion, especially if entrants follow the host on social media or agree to receive email newsletters when they submit their details. Even though sweepstakes are temporary and entrants have a very small chance of winning the sweepstake prize, it’s likely that they will continue to have exposure to the host business’ updates, such as new product releases, long into the future.
Contests
A contest also tends to be free to enter, although some do charge a relatively small entry fee, which is perfectly legal but should be clearly outlined in the entry details. The prize winner is not determined randomly, but is instead judged and evaluated on something they submit especially for the occasion, such as an essay, a piece of art, a design, or a photograph.
As with a sweepstake, a contest will run for a pre-determined period of time, with the closing date and winner’s announcement date clearly outlined for entrants to see. However, it is very unlikely that a contest will offer a greater chance of winning if an entrant promotes the contest online, as this would defeat the objective of the entrants being judged on talent.
Because of the nature of a contest, it may take longer for a winner to be announced. All of the entrants’ work must be judged thoroughly and fairly before the winner can be determined. There may also be runners up, which a sweepstake is less likely to have.
The prize offered in a contest is usually related to whatever is being judged in the contest itself. An example of this would be a photography contest that offers an expensive DSLR camera set as a reward, or a book publisher that offers a publishing contract to the winner of a short story competition. Contests are far likely to draw in a smaller, more niche audience because of this.
The benefits of hosting a contest are:
- It’s legal to charge a small fee per entrant, which means money can be made directly from the contest itself. In comparison, a sweepstake is more likely to earn revenue from sales made from large-scale exposure only, which is a less guaranteed method of generated profit.
- Because contests offer a much more niche prize, they are likely to bring in an audience of incredibly dedicated entrants. Judges of the contest should find the winner’s selection process an enjoyable experience.
- Contest hosts can usually benefit themselves from the winner. For example, a book publisher may find one or several exceptionally talented authors from a range of entrants, who they can then represent and earn money from in the future.
