How to Start a Sweepstakes Business

money money money image by Arman Zhenikeyev from Fotolia.com

Everyone enjoys the rush of winning. Tap into people's desire to win by starting a sweepstakes business. Some sweepstakes businesses operate as a gathering of various ways for people to win money. Other businesses sell their services to companies that want to attract new customers to their websites using sweepstakes as a draw. Either way, you first need to understand the fundamentals of a sweepstakes business by creating a web page and running several sweepstakes.

Purchase a web domain, as well as a hosting service for your domain. Include the words win, money, cash or sweepstakes in your domain name to ensure that visitors understand the intention of your website.

Purchase a prize for customers. Popular mid-range prizes include gift certificates, TVs and video game consoles. Popular pricey prizes include cars and vacations. Cash always serves as a desirable prize.

Write a set of rules for your contest. Rules should include a minimum age, a maximum number of entries per customer, and the method in which you will give customers a prize. Have a lawyer double check your rules to ensure you aren't breaking any local, state or federal laws. Some sweepstakes, with poorly defined rules, are seen as illegal gambling in the eyes of the law.

Design an entry form for customers. Since an entry fee often deems sweepstakes illegal, use a different method of gaining money. Some online companies opt to have customers fill out surveys and later sell the information to companies that gather user information. Other sweepstakes companies partner with companies like Netflix and force customers to complete several "offers" such as signing up for a free trial with Netflix, in order to enter a sweepstakes. If you intend to sell your services as a sweepstakes company, avoid "offers." Some people view these "offers" as unprofessional.

Open your sweepstakes for entry and advertise it on popular websites.

Offer your services to websites or retail stores. Send these companies letters of intent consisting of examples of successful sweepstakes.

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About the Author

Breann Kanobi has worked as freelance writer since 2010. Kanobi regularly submits content online to Gamer DNA. Kanobi received a Bachelor of Fine Arts in film and television from New York University in 2010.

Photo Credits

  • money money money image by Arman Zhenikeyev from Fotolia.com