I just set up my newsletter signup on KingdomArcade.com last night. I had one subscriber this morning but is unconfirmed still. I want a good number of signups before I send out the first email on the 31st. So I was thinking of offering $20-$30 for 1 random subscriber. The contest would run until May 20th and the winner would have to agree to stay subscribed for another 6 month at least. I get 1000-2000 UV per day, so I don't think I will need to promote the contest. I don't think I can afford to really promote it anyway. I should make at least $700 from my site by the contest end date so maybe I could offer a $15 2nd prize and $5 3rd prize. Anyone think this is a bad idea? Or have any suggestions? Please comment.
You need to be careful with contests. There are a ton of restrictions and "legal" issues that have to be ironed out. A few years ago i was considering contests, but after doing some research I decided not to. Too much hassle involved.
It wouldn't be a contest; rather, a giveaway. A contest requires the users compete against each other.