Question on contests..

Discussion in 'General Marketing' started by Tearabite, Dec 13, 2007.

  1. #1
    I'm considering making a contest for the "Premium" members of my forum.. I'll give away an iphone, or an ipod, or something really good ($100 - $500 value) each month. The idea of the contest is to bring in more premium members, and keep the ones i've already got.

    To become a premium member (and thus, be eligible for the contest), members must either subscribe (pay), post "x" number of posts, or submit (pre-defined) content.

    my question is; would there be any issues with the contest only being available to premium members? i seem to recall some law about "no purchase necessary" for contests.
     
    Tearabite, Dec 13, 2007 IP
  2. zorah

    zorah Well-Known Member

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    #2
    I dont see any issues.
    IMO, its your contest and you can put in your own rules.
     
    zorah, Dec 13, 2007 IP
  3. BOG

    BOG Peon

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    #3
    ipods and such could get pricey. People would be just as happy winning a $10 book or whatever. Unless your forum is making a killing, i would tone down the price of your prizes.
     
    BOG, Dec 13, 2007 IP
  4. Tearabite

    Tearabite Prominent Member

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    #4
    Yeah, it's making a killing.. An iPod or two a month and an iPhone or a Wii here and there would be no problem.
     
    Tearabite, Dec 13, 2007 IP
  5. buffalo

    buffalo Illustrious Member

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    #5
    I bet you are right on the "no purchase necessary" law. But since you offer few different ways to become one of your premium members, other than paying, I think you would be covered.
     
    buffalo, Dec 15, 2007 IP
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  6. Tearabite

    Tearabite Prominent Member

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    #6
    What i've decided to do is offer different prizes to premium/non premium members.. For example, For "Contest A" there will be one premium membership winner and one standard-membership winner. The Premium Membership winner wins an iPod touch.. The standard membership winner gets two free iTunes downloads..
    ..or something like that..
     
    Tearabite, Dec 15, 2007 IP
  7. cbogey88

    cbogey88 Peon

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    #7
    Yea that's a good idea. I think I might be kinda mad if I didn't get to participate :( Nice compromise to include everyone. You'll probably even more more $$$ that way.
     
    cbogey88, Dec 15, 2007 IP
  8. buffalo

    buffalo Illustrious Member

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    #8
    Hahaha! That's a huge difference in prizes. Almost a slap in the face to the standard members. Careful you don't tick them off. Remember that they are your "future Premium Members".... :p
     
    buffalo, Dec 15, 2007 IP
  9. pegeler

    pegeler Peon

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    #9
    Okay, here's the deal.

    You can give any kind of prize you want to to your "Private" members.

    If you offer it to the general public, you may NOT require anything further of them so that they become eligible to win an iPhone, etc.

    So, in your PRIVATE, Premium Members area you can offer what ever you like to them. (Send me 5,000 new Premium Members in the next 30-days and win a Happy Meal in a diamond studded sack!)

    After 30+ years in the broadcasting industry working both on-air, and managing/owning stations, I can tell you for a fact that the Feds keep a real close eye on operators of contests. Proceed with care.

    Pete
     
    pegeler, Dec 15, 2007 IP
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  10. Tearabite

    Tearabite Prominent Member

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    #10
    HHmm.. so then my example above would not be allowed because the only way they could be eligible for the ipod is if they are premium members?

    Now i'll have to rethink the whole deal..
     
    Tearabite, Dec 15, 2007 IP
  11. pegeler

    pegeler Peon

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    #11
    Don't get me wrong here.. You CAN run your contest in your private area, for your premium members. You just can't run the SAME contest for the general public, but require that they join as premium members in order to get the "big" prizes.

    Hope I didn't confuse you on that.

    As an example, a well-known marketer ran a sales contest for his latest product.
    The winner would "win" his Hummer.

    As a member of his list, I was just as able (in theory) to win as anyone else. Of course, the winner had a list of several thousand.

    So for example, if you had a "Silver" membership, you could run a contest for them. If you had a "Gold" membership you could run a different contest for them.

    Clear as mud? :)

    It may have been before your time, but years ago folks like Publishers Clearing House got in deep doo-doo for requiring a purchase in order to win the big prize. They ended up having to pay Uncle Sam a healthy "fine", and had to remove the restrictions.. ie: you don't have to subscribe to win.

    Pete
     
    pegeler, Dec 15, 2007 IP
  12. Tearabite

    Tearabite Prominent Member

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    #12
    thanks pete - ya, i get it, but since i want to drive more members into premium membership, i wanted to make the contest public.. if i keep the 'big' prizes private, then non-premium members would not know about it, thus no incentive to become premium members..

    SO.. if i held a contest, and allowed for three winners - 1 standard member, and two premimum members, would that fly? anyone can win, but if you are a premium member you have a greater chance of winning . .. ?
     
    Tearabite, Dec 15, 2007 IP
  13. hextraordinary

    hextraordinary Well-Known Member

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    #13
    I don't think the "no purchase necessary" applies to paid memberships. If I'm not mistaken, magazines and such hold raffles to monthly subscribers with no problems... Maybe you should look into that and than wouldn't need to get into complex schemes.
     
    hextraordinary, Dec 16, 2007 IP
  14. ThePublisher

    ThePublisher Peon

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    #14
    this is not legal advice, but in the US, you have to be careful a contest doesn't become a lottery.
    A lottery consists of three things: prize, chance, and consideration.
     
    ThePublisher, Dec 16, 2007 IP