You’ve decided to run a sweepstakes. Really, how hard can it be?

First and foremost, congratulations on making a decision which can help grow awareness for your business, generate new leads, increase loyalty, and boost product sales!

While many people think a sweepstakes is as easy as saying, “We’re doing a giveaway!” and pulling a name out of a hat, it’s a bit more nuanced than that. This is why even the most ambitious, detailed-oriented companies end up seeking the services of a knowledgeable sweepstakes management company.

Here are 4 great reasons why you should always work with a sweepstakes management company:

#1 Sweepstakes management companies offer protection from legal complications.

The #1 reason why we recommend working with a sweepstakes management company is that there are many legal intricacies both at the state and federal level that can land you in hot water.

From failing to have prizes above a certain price point registered and bonded, to unwittingly requiring participants to provide something of value to enter, to sharing customer’s private data without permission, small mistakes can land you in huge legal trouble.

In fact, several expensive public lawsuits have been filed against corporations for failing to comply with sweepstakes laws. This has tampered with not only the finances of the businesses, but with their reputation. Check out a few of these notable lawsuits here.

#2 Sweepstakes management companies can offer you insurance if something does go wrong.

So, if the #1 benefit of a sweepstakes management company is protection from lawsuits, why not just hire a sweepstakes attorney? Well, although attorneys can help you face legal challenges, they cannot preemptively protect you from any forthcoming claims filed against you. Sweepstakes management companies can offer insurance that will indemnify your company and your partners for any expenses resulting from any suit or claim that arises as a result of your sweepstakes or contest.

Hot Tip: When considering a sweepstakes management company, ensure that they have 2 types of insurance: Errors & Omissions Insurance and Cyber Security Insurance. This will protect you not only in the face of participant suits, but protect you in the case of any security breach of consumer data.

#3 Sweepstakes management companies not only help with legalities, they also help you with strategy.

Although you may be a marketing whiz, if you’ve never run a sweepstakes before, you may not be aware of all the steps you need to take to run a successful campaign.

  • Do you know how to, say, write legally compliant rules and regulations?
  • Or manage prize fulfillment?
  • Or properly assess the benefits and drawbacks of running a text-to-enter sweepstakes versus a Facebook sweepstakes versus a survey sweepstakes?
  • Or develop a compelling sweepstakes strategy tailored to achieving the long-term results you want for your business?

If you answered ‘no’ to any of these, you should seriously consider hiring a seasoned sweepstakes company. By employing a sweepstakes management company, in addition to legal aid, you’ll also get access to:

  • Campaign strategy development
  • Web development strategy
  • Writing of official rules and regulations
  • Hosting of online campaigns
  • Collection of entrant data
  • Prize procurement and fulfillment
  • Bonding and registration of prizes
  • Randomized winner selection and verification
  • IRS reporting

Word to the wise: Not all sweepstakes companies are created equal and some may not offer all of these services. Do your research prior to hiring a sweepstakes management company. In particular, pay close attention to services offered, experience and case studies, marketing and advertising expertise, and the responsiveness and directness of communication. A sweepstakes management company that is worth its salt will be intimately involved at every stage of your sweepstakes. You want to be absolutely sure that they are actively engaged in seeing your unique campaign to success.

#4 Sweepstakes management companies can help educate you during your campaign, so you can not only run this sweepstakes successfully, but have the know-how to make future sweepstakes a success.

Within the first few minutes of a consultation with a potential sweepstakes management company, you should feel like you already know more about the process of running a sweepstakes. A good sweepstakes management company will actively educate you on the process of running a sweepstakes in your state and, at the end, you should walk away feeling more confident about any future sweepstakes campaigns.

When deciding on the best sweepstakes management company, be sure that you feel like they have the “big picture” for your company in mind. They should be thinking about how to help you not just run a profitable campaign, but how to help grow your business in the long run.

Ready to Run a Sweepstakes?

US Sweeps is here to help. We are a veteran sweepstakes management and have worked with big name clients such as Whole Foods, Dick’s Sporting Goods, Ann Taylor, and Hallmark Channel. You can check out our clients and case studies to learn more.

We are currently offering a free, no obligation 30-minute consultation. Through this consultation, you’ll receive:

  • A free consultation on your sweepstakes (or contest) idea
  • Recommendations for how to best execute your idea
  • Awareness about which of our services are right for your sweepstakes
  • A timeline for your campaign
  • Assistance in understanding legal compliance laws in your area
  • A follow-up email including a sweepstakes plan and proposal that our company feels confident in delivering within the aforementioned timeline

Simply email us today to schedule your free consultation.