April 23rd, 2009
How do companies afford million dollar prizes?
Have you ever wondered how Sponsors make big campaigns with million dollar headlines? Promising to give away $1,000,000 or a new home to one lucky winner? How can they afford it?
Typically, when a million dollar prize is awarded it is insured by a third party. This third party will calculate the odds of a winner or the expected response and, based on these numbers, secure coverage for the prize. So essentially, a million dollar headline may only cost the Sponsor a fraction of that cost.
So in the end… the Sponsor still gets the big headline, prize budgets are kept in control and it can provide a wonderful PR opportunity…a win/win!
Categories: Prizes
No Comments - Leave a comment - Comments Feed