Why do some people post contests for other people than themselves? For their clients, etc... Aren't they just getting clients, making contests, presenting the work to the client and making money off of us?
Its called outsourcing. They could take on a web design job and get paid $400 for it. They could hire a wiz kid and pay him $100 to do the job for them - thus making a $300 profit with the only cost being a little time spent emailing. OR They could run a $50 contest and make a $350 profit with the only cost being the feedback given during the contest. Better?
Yep, i bet most of the contests here in dp are doing that. Most contests here priced at $20 - $100 Logo will all get the roughly the same quality of submissions.
Why is this allowed? For example, when entering a contest I do not give up the right to some other person other than the contest holder, I give the CH no right to sell my design to other people...