Launching a sweepstakes, contest, or game takes a lot of work. While some businesses elect to do the research and risk it alone, most brands turn to sweepstakes administrators to help them get the job done. Here are five benefits of hiring a sweepstakes administrator for your next promotion.

1. Sweepstakes Administrators Do the Paperwork

Your sweepstakes administrator will provide you a suite of services including writing the official rules, building a website, selecting winners, executing affidavits of eligibility and liability releases, and fulfilling prizes. They will ensure an audit trail for all services provided (required for indemnification) and make sure any winner receiving a prize in excess of $600 receives the correct IRS paperwork to report the receipt of the prize as income.

2. Sweepstakes Administrators Know the Laws

One of the key benefits in hiring a sweepstakes administrator is their ability to navigate the various promotional laws set forth at the state and federal level. A good sweepstakes administrator will walk you through the various steps you need to take to stay out of legal trouble with various government agencies and then some—including state registration and bonding requirements, alcohol beverage laws, laws protecting minors, and even FTC requirements for hashtags and disclosure when working with influencers.

While it may seem easy to hop on the internet and search out general promotion law, a sweepstakes administrator will dive into the particulars of your specific promotion and make recommendations on a variety of potential legal issues that could get you in hot water.

And it doesn’t stop at promotional law. Many social networks and other online promotional platforms have their own rules for advertising sweepstakes. A sweepstakes administrator can help you make your promotion compliant—and effective—on whatever platform you choose.

3. Sweepstakes Administrators Help You Strategize

When you hire a sweepstakes administrator, you’ll be asked a series of questions about the type of promotion you’d like to run. Some of these questions will be about timing, eligibility, how consumers will enter, and the type of prize you will award.

These details help the sweepstakes administrator determine which laws you’ll need to adhere to before, during, and after launch. While some of the requirements might be straightforward, others may require the experience of an agency familiar with the ins and outs of promotional law.

This expertise is particularly useful when planning your prizing. Your sweepstakes agency will walk you through the various ways in which you can structure your prize distribution to keep your audience engaged and save money on state-required registrations and bonds.

They will also review your creative, advertising, and promotional materials to ensure there are no misleading statements that could cause an attorney general or the FTC to flag your promotion. Legal disclaimers are required on all advertising, so the promotional team will supply you with the correct font sizes, language, and placement for all pieces.

4. Sweepstakes Administrators Provide Indemnification

Indemnification is a key benefit in hiring a sweepstakes company to administer your giveaway. While it’s not standard for sweepstakes administrators to provide blanket insurance coverage (covering you for your mistakes), they do provide indemnification for the services they provide. This means the administrators take responsibility if a legal issue arises as a result of a service they performed.

Imagine the expense involved if you accidentally notified more than one winner that they won a large sum of cash. A sweepstakes administrator not only covers that expense through indemnification, but they also work with those involved to ensure the least negative PR impact to your brand.

5. Sweepstakes Administrators Defuse Customer Service Issues

Speaking of tricky consumer situations, there’s nothing worse than planning an amazing promotion, getting it off the ground, and then falling victim to a cranky entrant blasting your social media platforms with negativity. Unfortunately, it’s common for a consumer to complain (quite vocally) in an effort to disrupt your promotion.

Regardless of the reason, a sweepstakes administrator will help you defuse the situation by providing an action plan and language for email and telephone communications and often by working directly with the consumer on your behalf.

Their knowledge in promotional law and best practices in marketing ensures your brand comes out on the other side, unscathed and in good light.

Ready to Work With a Sweepstakes Administrator?

If you are looking to brainstorm ideas for your next sweepstakes, contest, or game, be sure to run it by a sweepstakes administrator to make sure everything is on the up and up. We have decades of experience, and we provide free consultations and custom proposals within 24 hours or less. Email or call us today!

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