Archive for April, 2011
April 19th, 2011
What’s the Catch?
The highlight of any Sweepstakes, Game, or Contest is the prizes offered. So when you notify a winner of their windfall you’d expect they’d be overjoyed – no? Half the time, yes. The other half, understandably, is suspicion before the joy, which it’s hard not to be in this day and age.
There are a few ways a consumer can validate the legitimacy of a promotion, and a few red flags to look for in a scam.
What to do:
1. Who’s calling you? Either the Sponsor will be contacting you directly, or their promotion administration agency. In either case, they should be providing you with a direct contact name/number for questions. Call it back, look it up online, or whatever other means to make sure they’re calling you from a ‘real’ location.
2. If you’re being contacted from a promotion administration agency, check out their website. Most have a list of past projects and current clients – review the list as a way to help validate the relationship between the agency and the Sponsor and the promotion you’ve won.
3. Check out the promotion that you’ve won. Do you remember entering? Oftentimes, consumers who have won via an automatic purchase-based promotion may or not be aware the campaign is going on since the entry mechanism is so passive. More often than not now, the promotion is advertised online so you can visit the microsite directly to review the details. If not, ask to see a copy of the Official Rules. Even when consumers enter promotions directly by filling out an entry form or by playing a game, they may forget entering – the Sponsor/agency contact should be able to walk you through the program details to help jog your memory so you’re making a well-informed decision before accepting a prize.
What not to do:
1. A legitimate promotion will never require you to pay to receive a prize. You also will never be asked to provide your credit card or other account information. Throw up the red flag if you are being pressured for this information.
2. Keep in mind that in compliance with Federal law, Sponsors are legally required to file a 1099-MISC tax form for all winners receiving prize(s) valued over $600 (winners will be required to pay taxes to the government in the year the prize is awarded). With this, winners will be required to provide their Social Security number on their Affidavit of Eligibility & Release, so it is key to make sure you’re comfortable your information is going to a secure, legitimate source before replying.
3. As a Sponsor, making sure your general Customer Service Representatives are apprised of your current promotions is key to making the winner validation process as smooth as possible. It is alarming when a consumer calls to validate a program and the 800# representative is unaware of the program. If they cannot validate the programs directly, make sure there is a process in place for agents to redirect such calls to the main marketing/promotions department to handle directly.
April 19th, 2011
Florida is Enforcing
Beware, Florida is enforcing the Florida Game Promotions Statue s. 849.094 (2) (e), F.S to the tune of $1,000 for the first violation. The statue states that it is unlawful for any operator to require an entry fee, payment, or proof of purchase as a condition of entering a promotion. With that said, Sponsors can no longer open Promotions to customers (even customers prior the start date of the promotion) with a paid service only; such as cable subscriptions, mobile plans, etc. You can run this type of promotion as long as the non-customers (general public) can also enter.
Categories: Legal, News, Promotion Risks, Winners
April 19th, 2011
How do the taxes work?
One question we are frequently asked by winners is in regard to taxes….they would love to accept a prize, but are unsure of the tax obligations. So here is the skinny on how it all works. If you win a prize that has a retail value of $600 or more, you will be issued a 1099-MISC Tax Form in the following calendar year that will reflect the retail value of the prize. The 1099-MISC Tax Form is a form used to report to the IRS income as the result of a prize won. It is also used to report rent, royalties and a variety of other types of income. The amount of taxes each individual winner will be required to pay to the IRS really depends on their household income, deductions, etc. So it is always best to consult your tax advisor when determing if a prize is financially reasonable for any winner to accept.
Categories: Budget Friendly, Economy, Prizes, Tips, Winners
April 19th, 2011
To “Like”…or not to “Like”
No surprise to most of us, Facebook has become an IDEAL marketing tool for brand marketers. We have been reading several articles recently in regards to the most effective social media marketing. What is the best way for brands to reach consumers using Social Media? The average Facebook user clicks the Like Button 9 times, writes 25 comments, becomes a fan of 2 pages and is a member of 12 groups per month. Not to mention spends 55 minutes on Facebook a day (according to Anatomy of a Facebook Post). This allows many opportunities for consumer engagement!
It is said that an image-attached post is the most effective post type on Facebook, which until recently was the “Share” method. The Like button will now be taking over the functionality of the Share button. Previously, when deciding to “like” something on Facebook, a small link to that specific page or story would appear on the user’s profile, often getting lost among all other wall postings and news feeds. Now, when users “like” a page, a detailed story with a thumbnail photo will be published to their page, similar to what the Share Button did before but without the ability to edit or personalize what is put on to your wall.
This can be a very good thing for marketers! When a user “likes” your site, an automatic story and thumbnail will be posted to their wall more prominently then the small link that was posted before the switch. With the amount that users are currently using the Like button on a day-to-day basis, we believe this will increase page traffic along with awareness of sites or PROMOTIONS!
However, at the same time, this can be annoying to other Facebook users. Are you one of the many Facebook users who has a habit of “liking’ a lot of things? Things that we were “liking” in the past so nonchalantly are now more notably seen on our pages, making us think twice before “liking” something moving forward.
The question is…if you are to now “share” something every time you “like” it, will you “like” as many things as before? Consumers may start to think twice before they “like this or that!”
Categories: Media, News, Technology, Tips