Sweepstakes, Contests, Drawings & Prizes. The Free Lottery - Same Or Better Odds, No Cost To Play.

Over $70 billion dollars a year are spent on lottery tickets, which is an average of $300 per adult in the 43 states where it’s legal. That’s more than what America spends on sports tickets, books, video games, movie tickets and music–combined. The odds of winning are 1 in 292,201,338. What drives it all? The tiniest chance to win millions of dollars and be set for life. But, wouldn’t it be awesome to have the same chance of winning without having to pay for the ticket? And, wouldn’t it be even better if the odds of winning were increased, even if you didn’t have to pay to enter?

Such a “lottery” exists and it’s even more common than the paid lottery; it’s just not called a lottery. It’s called a “sweepstakes”. In fact, by legal requirements, if it’s called a sweepstakes it cannot charge an entry fee or even require the purchase of any product. All sweepstakes imply that you should purchase the product; they’re used to promote the product and increase sales of the associated product. However, even when you see a sweepstakes that says you will get additional entries for purchasing the product, there has to be an alternate method of entry in order for it to be called a “sweepstakes”. While sweepstakes, contests, drawings and prizes don’t exactly offer freebies to everyone on a regular basis, the prizes for those who win are actually free. The phrase “no purchase required” is much sought-after by freebie hunters, and in this case it’s a legal definition by federal law. Some state laws even add additional requirements, which are often indicated in the rules of the sweepstakes.

When Sweepstakes, Contests & Prizes Are And Are NOT Actually Free

Lotteries, Sweepstakes and Contests all have slight differences in order to be called what they are:

• First for comparison, the lottery requires an entry fee and the winner is chosen by luck of the draw.
• A Sweepstakes does NOT require an entry fee, and the winner is chosen by luck of the draw.
• A Contest may or may not require an entry fee, and the winner is selected by skill and chosen by judges.

 

The lottery is never free. It’s associated with gambling which can be a financially detrimental habit. And, it’s been aptly described as “the road tax for people who can’t do math”. Seriously, who needs an additional tax?

Since a sweepstakes requires no entry fee, it is actually free. The only possible expense involved in a sweepstakes is postage for mailing sweepstakes entries. As explained below, winning is a taxable event, and if your postage is well-documented (and you win) you can deduct that expense from your taxes. You can avoid the expense of postage by entering sweepstakes online. Other than that, there is no upfront cost.

Since contests may or may not require an entry fee, they may or may not be free. Even when they don’t require an entry fee, you could have expenses related to entering. For example, in a live baking contest you’d have the expenses of cooking supplies and ingredients. Again, winning is a taxable event and if your expenses are documented well, then they become tax-deductible. If you wish to appear on a game show, then you may have related travel expenses.

Like any promotion, this site advises you not to let gimmicks and corporate hacks persuade you into spending more. The idea is to spend less and get freebies that are actually free. If you’re at the grocery store, and you’re already interested in purchasing a particular product, then search for the packaging that has the sweepstakes or contest on it. If you were not already interested in buying the product, then don’t get it just hoping you might win a sweepstakes, because that’s not actually free. Just get the information from the product packaging, you don’t have to buy it to enter.

How To Win Sweepstakes and Contests

The single best way to win a sweepstakes or contest is to follow the rules. Those who don’t follow the rules are immediately disqualified. Not following the rules is the reason why 25-90% of people who enter sweepstakes don’t win. Think of how much that increases your chances of winning. If the rules say to use a blank index card, then don’t use an index card with lines. If they say to use a piece of paper then don’t use an index card. If they say “print” then don’t write in cursive. Follow the rules to letter to avoid being disqualified. This means reading all the fine print and doing exactly what it says.

Common reasons why people get disqualified include:

• They don’t follow the rules
• They live in a state that doesn’t allow the sweepstakes. (Watch for the phrase “void where prohibited by law.”) The rules usually say which states are not eligible.
• They live in Alaska or Hawaii, and the rules specify “continental U.S.”
• They have a family member that works for the company offering the prize.

How to improve your chances of winning sweepstakes:

Follow the rules

If the rules allow it, then submit more than one entry form. The rules usually do allow this, however you must submit each entry separately. This means you have to pay for a separate stamp for each mailed entry.

If they offer more than one way to enter, then use every method. The five ways to enter a sweepstakes are in-store, by phone, by mail, online and texting.

Sweepstakes with mail-in entries only may be easier to win than in the past since less and less people are using mail compared to other sweepstakes with electronic entries.

If the rules specify more than one address, send entry forms to both addresses (or all addresses).

If the winner is selected by a manual drawing (meaning a person draws it out of a bag or bin), then spread out the entries over time. If your entry forms are spread out through the piles of entry forms then it is more likely to be picked than if all your entries are bunched up together. Whether they select the winner by manual drawing will depend on the third-party who is processing the sweepstakes. It’s possible that most winners are now chosen electronically, but there is no way to tell. If a sweepstakes accepts entries from mail and online, then they have to print each electronic entry to select an entry by hand. If they select the winner electronically, then each mailed entry has to be transferred electronically.

Also for hand-drawings, submit some entries just before the deadline. Sometimes the most recent entries remain at the top of the drawing pile.

Be proactive at finding out who the winners are. You might be the winner and the notification got lost in the mail. The rules will indicate where to find this information. Either you can write a letter to the company holding the sweepstakes to ask for the names of the winners or the winners will be posted online. If you request the winner’s list by mail then include a self-addressed stamped envelope.

For mail-in entries, do not photocopy the entry form unless the rules say you can.

For mail-in entries use a #10 envelope

It is best not to wait until the last day to mail your entry, but if you do, mail it before noon be sure it is postmarked that day.

Enter multiple sweepstakes. Those who win sweepstakes on a regular basis, (at least those on the cable TV show High Stakes Sweepers on TLC) enter about 300 sweepstakes or more a day and spend a few hours a day entering. The first man they showed on the pilot episode made sweeping his full-time career, either entering sweeps or selling his winnings online from 9-5, Monday to Friday. He claimed to make $70,000 to $80,000 a year.

Enter one-day internet sweepstakes on a Saturday or Sunday when internet traffic is low. If less people enter then your chances of winning are higher.

The more local a sweepstakes or contest is, the less entries there will be, and the higher your chances of winning. Locally printed newspapers and magazines have fewer entries and therefore a higher chance of winning. Your local Realtor could give away a prize by random drawing and that limits the actual entries down to the number of people in your neighborhood. Take out the people who don’t participate and that makes your chances even better. The prize won’t be as big, but winning is still awesome.

How to win a contest

If you want to win a contest, then follow the rules to the letter to avoid being disqualified. Also many of the ways to improve chances of winning a sweepstakes mentioned above apply to contests.

Remember, contests are games of skill. Pick the contests that match your skills. If you’re good at writing essays, jingles, or ad campaigns then you’ll want to pick these contests instead of trying to make a new recipe, or vice versa.

The judges decide who wins. Therefore, you must appeal to them. Even if your entry is the most eloquent, it has to appeal to the judges. Its not about what you like. Its about what they like. You may even be more skilled than the judges. They’re still the ones who pick the winner.

Tips for word contests (examples of word contests include: write a rhyme, jingle, slogan, caption or essay)

• Be sincere
• Be simple
• Be original
• Presentation is just as important as content. You must have something to say, and you must say it with style (try to use one of the word plays listed below).
• It helps if you have used the product you are writing about.
• Don’t make general statements about why it is good to use products like their product. Make specific statements about why that specific product is the best. Make a list of sales points for that product and incorporate them into your entry.
• Use reference books. Mostly you’ll need a good dictionary and thesaurus. Other good references include: The Oxford English Dictionary (which places words in context), a dictionary of synonyms and antonyms, an encyclopedia, a rhyming dictionary, and a book of quotations.
• Practice, practice, practice

Types of Word Plays:

• Judges like puns. Puns are words with double meaning. There are two types: implied puns and variations of a word. Implied puns are harder. A biotechnology company might like the slogan “we make life better.” This can be interpreted as “our products improve the quality of life” and “our products are better than the competition’s”. A pun which uses a variation of a word could be something like the title of the movie “Knight and Day” which uses the word “knight” instead of “night.”
• Comparisons: similes and metaphors. Similes use the terms “like” or “as”. (ex. The insult was like a dagger stabbing her in the heart.) Metaphors compare without using “like” or “as” and are more powerful comparisons. Metaphors often say one thing “is” or “was” another thing. (The insult was a dagger stabbing her in the heart).
• Personification is a metaphor that gives an object life-like qualities or human-like qualities.
• Alliteration is when many of the words in a sentence start with the same letter. (Super Shoppers Save!) Try not to do much more than three. There is a line between clever and annoying.
• Use a typo on purpose. Example: if the product uses a dinosaur mascot, you could say it’s “Rexilicious”. Or if the product/company name is “Hale”, you could say they give people a “Hale of a time.” Of course, you should avoid typos as mistakes.
• Rhymes. (If I had a dime for every time I used “time” for a rhyme.)
• Grouping. (ex: Larry, Curly and Moe.)
• Chiasm. This uses an AB then BA pattern. (ex: “The first shall be last, and the last shall be first” or “If you doubt your abilities, your greatest ability is doubt.”)

 

Tips for recipe contests

• Be original, be simple
• Presentation is just as important as content. Write a recipe that makes their mouths water to read it. Make the dish colorful and rich in texture.
• Do not copy recipes directly from cook books. You can use a cook book for ideas, but be original.
• Use ingredients that the company sells, or use the ingredient for which the contest was created (an absolute must). Highlight this ingredient in the instructions.
• Read winning recipes frequently to get an idea of the ingredients that most judges like.
• Make sure the ingredients are not expensive and that they are easily accessible.
• The recipe should be easy to make. Is it something people can make after coming home from a long day at work?
• Use “ready to serve” ingredients whenever possible. For example: use canned chicken instead of asking them to boil and shred the chicken.

Tips for writing the recipe

• Give clear instructions
• Give exact measurements
• Make it neat
• Highlight the contest sponsor’s product
• Make the name of the recipe appropriate for the contest. If it is for children, don’t call it “Banana Ecstasy” call it something like “Banana Surprise”.

 

Extreme Sweepers

Extreme Sweepers win often because they enter often. For some it’s even their part- or full-time job, according to the TLC show “High Stakes Sweepers”. They probably have more expenses than the average person would imagine for entering sweepstakes, and it probably took a learning curve and some expenses to get to that level. Yet, when they get to that level they probably make more than they spend. Similar to Extreme Couponers, this is a different breed of shopper. It takes organization, work, and persistence and it’s not really convenient. If you’re the type of person that carries credit card debt or is always starting projects without completing them, then stay away from extreme sweeping, but you will spend more than you will ever make. But if you think you can get good at it, then it might be the best job you’ve ever had.

You could even start small and work your way up. Just entering online sweepstakes (free, no postage) for an hour a day would increase your chances of winning.

What Happens When I Win a Sweepstakes Or Contests?

If you win, you might be contacted by a private detective agency. Companies hire third-parties to handle the administration of the sweepstakes or contest and they have to be sure that you have completed all the rules. The detective agency will ask you to sign an affidavit which basically says you followed the rules. If you refuse then you’ll be disqualified and you won’t get the prize. If you like, you can request to have a lawyer present. Some sweepstakes and contests aren’t this complicated, they just mail the prize to you depending on how valuable the prize is. If it’s Publisher’s Clearinghouse, then they’ll show up at your door with a video camera.

You might be the center of attention for a while. TV and news reporters might visit you. You’ll get phone calls or messages from people you haven’t talked to since high school. You might get people asking to take your photograph. You’ll get charities contacting you and asking for donations. You might get letters from people you don’t even know asking for money.

Your contest material can be used in future promotions. Your secret recipe will be out. The jingle you wrote might be on the radio or television and you might not get credit for it.

If you’ve worked really hard to win, you might feel depressed that it is all over. But hopefully the the prize makes any depression short-lived. You can also continue to try to keep winning.

Winnings Are Taxable And Other Important Notes

The IRS recognizes prize winnings as a legitimate source of income. Therefore, if a prize is won, then the winner has to pay taxes on it, sometimes as high as 70%. Can you afford to pay taxes on a sports car? Maybe you could sell it, but maybe you can’t; and if you can’t then you’re stuck with it. Do you want to pay taxes on a couch that isn’t your style? If the prize is a trip to Hawaii for a weekend when you can’t get off work, then you may still pay taxes on it if you accept it. Vacation prizes (especially ones that include plane tickets) are usually non-transferable, so you can’t even give the trip to someone else. Often trips don’t include air fair. So you have to pay taxes on the prize and air-fair just to enjoy the trip.

If the prize is cash then go for it. If it is anything other than cash, make sure you want it. You have to declare the fair market value of any merchandise on your income.  The fair market value is somewhere between the wholesale and retail price, or its the value at which you might be able to sell it. If its so ugly you can’t sell it, or if you can’t claim the full value of it, like a vacation, then contact an IRS agent to help you determine the fair market value. Think about the prize before you enter. Because even if you don’t want it, you still have to pay taxes on it.

On your taxes, you can’t claim a loss if you are unable to sell the merchandise for its value. But you can deduct whatever you used to win the sweepstakes or contest. This might include paper, stamps, envelopes, pens and pencils, the dictionary and other reference books, the ingredients for the recipe, and maybe even the computer you used to write the essay. You cannot claim these as deductions unless you actually win a prize.

Pay attention to privacy policies since they indicate how your personal information will be used once you enter a sweepstakes or contest.

There are more cases of fraud in local newspapers and magazines, though this shouldn’t discourage you from entering because the chances of winning are higher in smaller sweepstakes and contests. Therefore, learn to recognize bogus offers. Once again, You should never have to pay to enter a sweepstakes. If it’s called a “sweepstakes” and they want an entry fee, then it’s bogos. A contest may require an entry fee and/or proof of purchase.

Where Can I Find Sweepstakes And Contests To Enter?

Sweepstakes and contests are listed on the Actually Free Blog and the Sweepstakes & Contest Directory whenever they are discovered. If you know of any resources that we should add, please let us know.

If you want to hunt for sweepstakes on your own, here are some good places to look:

• Newspapers and Magazines (Reader’s Digest, TV Guide, Family Circle, Ladies’ Home Journal, etc.)
• Listen to the Radio in the morning and be one of the first to call in.
• TV advertisements and cable network TV shows (including Home & Garden shows and others)
• Start or join a club in your local area
• Start or join a club online
• Bulletin boards in grocery stores
• Product packaging (you don’t have to buy the product, just get the information from the packaging)
• Direct Mail, especially from your local Realtor
• Store Circulars
• Product and Manufacturing Company websites
• Community- or user-edited websites and blogs who aggregate opportunities (These are also listed in the Sweepstakes Directory)
• Websites that aggregate shopping deals either with a paid staff or computer automation (These are listed in the Coupons Directory)
• Other sources for Coupons and Rebates may be helpful.

 

The following are some very popular and common sweepstakes and contests

• Publisher’s Clearinghouse
• HGTV Sweepstakes
• McDonald’s Monopoly Sweepstakes
• Game Show Sweepstakes (Wheel of Fortune, and others)

 

Educational Scholarships and Grants are often administered the same way as a sweepstakes or contest. See the Grants & Scholarships Directory.

There are usually some very good sweepstakes during Black Friday and the holidays, however sweepstakes and contests are abundant throughout the year.