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June 2006

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Sweepstakes, Contests or instant winner games

Archive for June, 2006

money,money,money
Posted by Jim on June 2, 2006

I was curious how much the companies pay firms to run these promotions for them(ex:sweepstakes,sampling,radio contest,etc)? It seems like with so many other costs associated with it, it would make more sense to do it in house. Why would they hire a firm and how much would a average sized promotion cost when a firm is hired?

You lump several different types of promotions together and really don't provide enough detail for me to give you any pricing ranges that would be of any value. In general, the administrative costs of a promotion are the smallest cost. Typically you would spend much more on advertising and the cost of prizes.
The promotions you mention require a great deal of timing, detail and legal knowledge. Most companies realize that the cost of administering a promotion is well spent by letting the experts do it. The down side is too great.