NONE: ONLINE-ADS>> Trading Exposure for Prizes
ONLINE-ADS>> Trading Exposure for Prizes
Mark J. Welch, Esq. (markwelch_at_ca-probate.com)
Mon, 20 Jan 1997 11:46:27 -0800
Leo Sheiner and Scott Harvey wrote about trading media
exposures for incentives or prizes that could be awarded
to visitors, thus fueling site growth, visitor loyalty, and
perhaps enhance registrations that help identify the site
demographics.
I'd just like to jump in and point out that this adds a layer
of work to the site administration process,
in that you must arrange for delivery of items, and you
must deal with any complaints about product quality
or defects. (Even if the vendor agrees to deliver and
provide support, you must recognize that any perceived
failures will be reported to you and you will be expected
to address them.)
The same issue arises when you use your exposures to
promote programs like Amazon Books or other
products -- you are now in the sales business and
you have to deal with any problems that may arise.)
Oh, and for high-ticket prizes, don't forget the 1099s
to the winners. (Oh, and don't forget that barter
transactions themselves must be reported as income
and expense.)
You should also be aware that some companies view
"barter" deals like these as ways to dump problems
-- defective products, obsolete merchandise, or
irregular T-shirts and baseball caps. (I dare not
make a joke about those "Jolt Cola jock straps.")
Finally, keep in mind that there are many "freebies
and contests" web sites, and any time you offer a
product give-away, you will attract people to your
site who were not interested in your site but only
in the give-away. For some sites of general interest,
this is a good thing, since it creates a chance to show
your stuff to new people. But for other sites, it may
distort your demographics (and in some cases, as in
the Riddler online games which supposedly are open
only to persons 18 and over, may encourage people
to lie about their demographics).
I'm not saying that incentives are a bad idea -- in fact,
this is a great tool for web sites to consider -- but web
publishers must recognize the added complexity and
potential for extra work that these kinds of programs
entail.
-- Mark J. Welch, Attorney at Law, Pleasanton CA
-- http://www.ca-probate.com 510-462-8483
-- Email is not legal advice, and is not confidential.
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