If you want your next competition to take your brand viral, there are a lot of steps to take. You’ll need to incentivize social media sharing, create time-sensitivity, and even bring other brands into the mix.
Most important of all, you need to pick a grand prize that will get people excited. After all, your business runs on entries, so you need to offer up a prize worth paying for.
Not sure what to choose? Read on for a few tips that will get your competition website off the ground with the right prize giveaways.
Consider Profit Margins
First and foremost, you need to think about the sustainability and profitability of your business. Unlike normal businesses that offer their own products or services, competition businesses make money by charging for entries or generating ad revenue.
When creating financial projections, include the cost of your grand prize and the cost of running your competition website. It’s okay to break even when you’re building a name for yourself, but over time you need to start making more than you’re spending.
Build Partnerships
How can you up the ante with bigger prizes when you’re still struggling to earn a profit? The key is to secure your prizes at a discount, and partnerships are the way to go.
For example, maybe you want to offer an overnight stay at a nice hotel as your grand prize. Talk to the hotel about the mutual benefit of a partnership. If they offer you a discounted rate, your competition will create free marketing for them.
Follow Trends
Cash value isn’t always the best indicator of what kind of prize giveaways will draw attention to your business. Rather than looking for flashy products, services, or trips, pay close attention to what’s trending with your target audience.
The key to going viral is offering something desirable at its peak moment of desirability. Yes, people always enjoy things like travel, but what is the major hot spot of the moment? Tuning into trends will give your competition business a competitive edge.
Mind the Law
As a competition business, you can’t give just anything away at any time to any person. Unless you want to run the risk of fines or even forced business closure, you need to operate within the law.
Try to steer clear of grand prizes that aren’t legal on a federal level. If you get into the game of large cash prizes, make sure you work with a lawyer to meet all tax regulations.
Grow Your Competition Business with the Right Grand Prize
The right competition, raffle, or contest can send your business viral. While marketing can take you far, the success of each contest will come down to the grand prize. Use this guide to select the right grand prize every time.
Looking for more ways to build your business and your finances? We’ve got the latest on everything from viral marketing techniques to the best payday loans. Take a look around to support your success.
