Why do companies have sweepstakes or contests?
Through offering a sweepstakes with major prizes such as new cars, vacations, jet skis, money, PCs, entertainment systems, and cash prizes, companies hope to attract your attention and hope you buy their products. How can they afford it? Holding a sweepstakes is included in the marketing and advertising budget. Even if the grand prize for a sweepstakes is $100,000, that’s only a fraction of what some companies pay for a 30-second TV commercial during prime time hours Also, unlike playing a lottery, the prizes in a legitimate sweepstakes are GUARANTEED to be awarded. Sponsors rarely hold the sweepstakes themselves. They pay sweepstakes judging agencies to manage the promotion for them and to make sure that all prizes are awarded, and that they are awarded fairly–everyone has the same chance to win.
