Re: Sweepstakes Syndicating Firms?

From: Bruce Koren <bruce_at_citymarketing-sf.com>
Date: Fri 7 Jan 2000 17:27:06 -0800

FRED WROTE:
> In the old days there used to be "Sweepstakes
> Syndicating Firms" who would syndicate sweepstakes
> prizes. (firms "share" in the 'use' of the prizes in
> return for consideration, and the mailing list of those
> who enter the sweep.)
>
> Anyone know of any of those firms doing so on the web?


Fred,

I don't know about syndicating prizes, but it sounds
very sneaky. I think I'm entering a sweepstakes on
your site, but in actuality I have to compete with a
number of other groups of entries for one prize? I
think that model of husksterism is fading fast. You're
better off targeting your audience with a prize that
they'll want and that has a high perceived value. We
recently did an Opt-in Email sweeps with a Palm Pilot
as a prize. I think the Palm V is around $350, but
it's very attractive to a young, techy audience, and we
exceeded our client's goals on responses.

However, there's a bigger issue here. If you're used
to dealing with some kind of syndicate, then they
probably handled the legal aspects for you. If you're
doing an online sweepstakes, you're opening yourself
up to a rather large group of people who make it their
business to sue sponsors for illegal sweepstakes. And
what constitutes an illegal sweepstakes? I wouldn't
want to go to court to argue this one, and these guys
are pros. They'll sue you for $15,000 and your
attorney will tell you that he needs $20,000 to
prepare and fight the case! In addition, you need to
post a bond in some states, and make the sweeps
invalid in others. And then you have to send out
affadavits to the first round of winners so they can
swear they meet the eligibility requirements.

Bottom Line: Put about $6500 in your budget to have a
professional sweepstakes attorney write the rules, do
the drawing (digitally or conventionally), notify the
winners and obtain the mailing addresses, manage the
sending and receiving of the affadavits, and handle the
1099s if applicable.

Bruce Koren
City Marketing
415 398.0303
  http://www.citymarketing-sf.com
City Marketing, your official creative resource for the new millennium.




Received on Fri Jan 07 2000 - 19:27:06 CST