Frequently Asked Questions:
What is a Sweepstakes? How are sweepstakes legal, and are they legal in my state?
United States consumer sales promotion known as a sweepstake (also known by its inflected forms which are both single and plural: sweepstakes and sweeps) has become associated with marketing promotions targeted toward both generating enthusiasm and providing incentive reactions among customers by enticing consumers to submit free entries into drawings of chance (and not skill) that are tied to product or service awareness wherein the featured prizes are given away by sponsoring companies. Prizes can vary in value from less than one dollar to more than one million U.S. dollars and can be in the form of cash, cars, homes, electronics, etc. Sweepstakes softwares are legal because of the element of free entry. Sweepstakes can be played for free. Therefore it is not a lottery.
The 3 elements of a lottery are: Prize, Chance and Consideration. Remove the element of Consideration (Payment) and no lottery exists. Where in the world can you get a lottery ticket for free? Almost every state in the United States allows Sweepstakes Promotions if all rules are followed correctly.
Is the location of my Internet Business important? What are the main things to look for in a location?
Location, Location, Location. This classic saying applies to your business Business also. Other than the physical location, other traits of the location need to be noted. For example, there has to be plenty of parking for the customers, and the property needs to be well lighted. Preferably in a busy shopping center with similar demographic anchor tenants. Depending on the traffic and demographics of the city, the square footage of spaces can range from 1500 sq feet up to 5,000 sq feet. Growing into a space is much easier than outgrowing a space and losing customers because the waiting list is too long.
What is the key ingredient in running a successful Business Center or Internet Café with Sweepstakes Software as a promotion?
We have noticed with our best operators that no matter where they seem to open, they are successful no matter what. This is a direct reflection on the operator and a huge compliment for them. When asked how do they do it, their main responses are, “It is all about how your employees treat your customers, all about having a clean and nice environment, and hiring the right people. That along with the location and a crisp clean build out with nice décor and lighting, it’s a recipe for success.”
What are some of the things I need to make sure of when operating a sweepstakes as far as compliance goes?
Compliance is often looked over when choosing a Software provider, when it should be the most important. Our legal council specializes in the legalities of promotional games in the United States, and has helped Figure Eight create our Sweepstakes System to be the most compliant on the market today, if operated correctly.
What kind of profit can I expect my Sweepstakes Promotion to generate?
A lot of factors play a part in the success of your Sweepstakes. Just like any other successful business, the location has to be operated with business savvy and creativeness, as well as patience. There are locations that our operators have opened and instantly they are extremely successful from the first day they open. However some locations take time to get off the ground, so you have to be patient and let the business grow over time.
Sweepstakes Games Odds of Winning - Do the Sweepstakes Participants Really Win?
If Figure Eight is going to promote a product through a Sweepstakes Game, you better believe we are going to allow the end user to WIN playing our Sweepstakes Games. If you do NOT award a lot of prizes for Sweepstakes Participants, then why have a promotion to begin with? We want to create as much buzz about your Promotion as possible. We want people to know and understand that when they buy your computer time, they also can win Prizes if they reveal their sweepstakes entries. We at Figure Eight have years of experience in knowing which payouts work best and deliver long-term results. The pre-determined number of winners are carefully determined to achieve the best possible result from your promotion.
Why use a Server Based System?
A server based system means that the location has its own server on site. This means the local area network runs the site. There is no dependency on the Internet to feed information. This also allows for customers to continue purchasing time continuously. The location promotions are based solely on that location's numbers. Not one hundred other locations. We all know how frustrating it is to lose Internet connection. With a Server Based System, this is not an issue, and you will have no down time because of the Internet connection.
What is a Web Based System?
With a web based system it is on a website over the Internet or the server is off site. This is potentially an issue because if the Internet goes down so does the location. To protect against this, their are options with having multiple Internet companies and several firewall connections to increase the odds of keeping the Internet up and running. If the Internet blinks, customers will get frustrated with this. Other possible issues are numerous locations pulling from the same server which causes too high of payouts in some locations and too low in others, depending on how the pools are structured. As we all know the Internet will go down and the Internet service providers are not concerned with getting your location running again in a timely manner. If this happens with web based you are out of business. Customers will sit around waiting for minutes or even hours for your Internet to get service, but will eventually leave.
Which is better?
With a server-based system, things are more consistent and specific to your locations needs. Even though there is a cost up front, it is an easy business decision, because the last thing you want is to not be able to sell your product if you have buyers that are ready to make purchases. It pays for itself time and time again.
Generating a Profit
During the first month or two you are open, your focus should not be on profit. The main focus should be on the “little things” that most people who open a business overlook. Here are some “Little Things” that need to be a main focus.
- How many new customers you sign up per day.
- How to get people inside your business and see what products you offer.
- Have a Grand Opening Party.
- Offer a promotion for new customers.
- Place an ad in the paper advertising your services and Promotion.
- Hire the right people to work in the location.
- Offer your employees bonuses for bringing in their friends and family.
- Create a nice mood and environment in your Business.