- Different Types of Prize Promotions<\/a>
- <\/ul><\/li>
- What Does No Purchase Necessary Mean?<\/a><\/li>
- Providing Alternative Methods of Entry<\/a><\/li>
- Global No Purchase Necessary Laws by Country<\/a><\/li><\/ul>\n\n\n
Different Types of Prize Promotions<\/h2>\n\n\n\n
First, let\u2019s look at the different types of prize promotions available online. To understand the differences, you should first familiarize yourself with the word \u201cconsideration.\u201d<\/p>\n\n\n\n
Consideration alludes to the ways users can \u201cbuy\u201d giveaway or contest entries by making a purchase. It can also mean giving up a significant amount of time, like filling out a long and in-depth survey or making repeated store visits.<\/p>\n\n\n\n
When it comes down to it, what does and doesn\u2019t count as consideration depends on which country or state you\u2019re in. If you\u2019re in the U.S., buying a product is seen as a consideration, but in countries like the U.K. and New Zealand, it\u2019s not.<\/p>\n\n\n\n
Now that you know what consideration means, here are the different types of prize promotions commonly used.<\/p>\n\n\n\n
Raffles and Lotteries<\/h3>\n\n\n\n
![\"raffles](\"https:\/\/rafflepress.com\/wp-content\/uploads\/2020\/11\/raffles-and-lotteries.jpg\")
<\/figure>\n\n\n\nRaffles and Lotteries are 2 similar prize promotions that require entrants to purchase something to enter. They also draw the winners at random.<\/p>\n\n\n\n
Businesses are not usually allowed to run lotteries, and in the U.S., they are only government-run. In comparison, Raffles are typically meant for non-profit organizations.<\/p>\n\n\n\n
Lotteries include these 3 key features:<\/p>\n\n\n\n
- \n
- It gives participants the chance to win money or a prize of significant value.<\/li>\n\n\n\n
- Winners are chosen at random (by chance).<\/li>\n\n\n\n
- Participants need to buy tickets to enter or win.<\/li>\n<\/ul>\n\n\n\n
Here is how raffles differ from lotteries:<\/p>\n\n\n\n
- \n
- Raffles should have a winner every time, so you cannot carry over entrants to the next raffle.<\/li>\n\n\n\n
- You can run a raffle privately.<\/li>\n<\/ul>\n\n\n\n
Remember that raffles are limited to non-profit organizations in many countries. So check with your local state\u2019s laws for the official rules before going ahead with this type of prize promotion. Raffles also often have an entry fee.<\/p>\n\n\n\n
Sweepstakes and Giveaways<\/h3>\n\n\n\n
<\/figure>\n\n\n\n
Sweepstakes and Giveaways are often referred to as games of chance. This is a type of promotion you can legally run<\/a> as a business without breaking No Purchase Necessary laws.<\/p>\n\n\n\n
For your promotion to be seen as a giveaway or sweepstakes, it should include these features:<\/p>\n\n\n\n
- \n
- It gives participants the chance to win money or a prize of significant value.<\/li>\n\n\n\n
- Winners are chosen by randomly drawing a winner.<\/li>\n\n\n\n
- Anyone can take part without buying anything or providing consideration.<\/li>\n<\/ul>\n\n\n\n
The main difference between sweepstakes and lotteries<\/a> is that no purchase is required to enter.<\/p>\n\n\n\n
Contests<\/h3>\n\n\n\n
<\/figure>\n\n\n\n
Contests are prize promotions that are also called games of skill. This means entries need skill, and winners are picked based on merit instead of at random (by chance).<\/p>\n\n\n\n
Here are a few examples of skill-based contests:<\/p>\n\n\n\n
- \n
- Best photo contest<\/a><\/li>\n\n\n\n
- Voting contests<\/li>\n\n\n\n
- Essay competitions<\/li>\n\n\n\n
- Best video contests<\/a><\/li>\n\n\n\n
- Design a product contest<\/li>\n<\/ul>\n\n\n\n
In this type of promotion, winners are not chosen by chance, so it isn’t seen as a lottery or raffle, and No Purchase Necessary laws won\u2019t apply.<\/p>\n\n\n\n
That said, you can run incredible contests that ask users to create and share photos of your product in action. You can make this type of promotion with RafflePress’s contest app<\/a>. Contests such as these are an excellent way of increasing brand awareness and are free for users to take part.<\/p>\n\n\n\n
Now that you\u2019re aware of the different prize promotions, let\u2019s explore what No Purchase Necessary means.<\/p>\n\n\n\n
What Does No Purchase Necessary Mean?<\/h2>
\nNo Purchase Necessary laws mean that you cannot ask participants to buy something or make a payment to enter your giveaway.<\/p>\n\n\n\n
The details of these laws may differ depending on the country. Yet, in general, they say that if you\u2019re running any type of prize promotion where the winner is chosen at random, you can\u2019t:<\/p>\n\n\n\n
- \n
- Require users to buy something to enter.<\/li>\n\n\n\n
- Let users increase their chances of winning by buying something.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
Providing Alternative Methods of Entry<\/h2>\n\n\n\n
Despite the No Purchase Necessary laws, you can still ask people to enter your giveaway by purchasing something. Yet, you should always offer a free alternative method of entry (AMOE).<\/p>\n\n\n\n
Alternative methods of entry are free ways people can enter your promotion without making a purchase.<\/p>\n\n\n\n
For example, let’s say you\u2019re running a giveaway<\/a> that allows users to buy a product to enter. In this scenario, you should also offer a free way to enter that doesn\u2019t require a purchase, which awards the same number of entries.<\/p>\n\n\n\n
If you provide free alternative ways to enter, making a purchase is no longer compulsory. It also doesn\u2019t give users increased odds of winning. This means your promotion is no longer violating any purchase laws.<\/p>\n\n\n\n
Important:<\/strong> Make sure users can\u2019t get entries for making a purchase AND completing your alternative entry method. This would give them an unfair advantage.<\/p>\n\n\n\n
Some easy ways to add free alternative methods of entry to your promotion include:<\/p>\n\n\n\n
- \n
- Signing up for your email list<\/a><\/li>\n\n\n\n
- Sharing a message on social media<\/a><\/li>\n\n\n\n
- Entering via social media<\/li>\n\n\n\n
- Visiting a web page<\/li>\n\n\n\n
- Filling in an online form<\/a><\/li>\n<\/ul>\n\n\n\n
With RafflePress\u2019s easy-to-use giveaway app, we offer all of the above AMOE so you can create a compliant giveaway contest with just a few clicks.<\/p>\n\n\n\n
Here\u2019s an example you can play with to see for yourself:<\/p>\n\n\n\n
You can also use the Giveaway Rules Generator<\/strong> to add terms and conditions to your giveaway widget automatically.<\/p>\n\n\n\n
<\/figure>\n\n\n\n
It will ask some simple questions such as your sponsor\u2019s name, address, email, and more. Then it will use the answers to create a set of guidelines your participants can reference.<\/p>\n\n\n\n
Global No Purchase Necessary Laws by Country<\/h2>\n\n\n\n
No Purchase Necessary Laws prevent promotions like giveaways and sweepstakes from asking people to pay to enter. That is unless a free alternative entry method is available.<\/p>\n\n\n\n
Yet, it\u2019s essential to know that these laws don\u2019t always apply to every country. Plus, what is considered as payment varies from country to country.<\/p>\n\n\n\n
To help you find the laws that apply to you, here are some No Purchase Necessary laws from various countries worldwide. The table below also shows you which countries require you to offer a free Alternative Method of Entry (AMOE).<\/p>\n\n\n\n
- Sharing a message on social media<\/a><\/li>\n\n\n\n
- Signing up for your email list<\/a><\/li>\n\n\n\n
- Best photo contest<\/a><\/li>\n\n\n\n
- Providing Alternative Methods of Entry<\/a><\/li>
- What Does No Purchase Necessary Mean?<\/a><\/li>