The sort of prize scams the FTC is on the lookout for
http://www.consumer.ftc.gov/articles/019...
Hoping to find regulations, I only found that the #6 biggest consumer complaints was for:
"Prizes, Sweepstakes and Lotteries"
with 89,944 users complaints accounting for 4% of the total received.
Here's one example of sweepstake restrictions that were recently relaxed
http://www.thetimesnews.com/news/top-new...
If the people are paying to ente, hes running an illegal site. If they aren't, how is he paying for the prizes? No, not a good business model.
How can you give something away and it not cost money? Maybe possible potential but what would your exit strategy be? You can't make money giving something away unless you have a proven plan to make money. You can't even break even.
So basically a good friend of mine, who's currently 16, has just launched a site, it basically holds various competitions and giveaway.
The website has multiple categories like:
Tech, Clothing, Cash and other.
You simple click on the item you'd like to win, and fill out the basic form, along with completing the form, you choose a random number.
At the end of each month, the competition is closed and all the numbers submitted are entered into a randomising software tool, once the number has been drawer, the winner is notified by the email they supplied.
You can enter all the competitions, to increase your chances.
The best thing about this business he's launched is that it doesn't cost a penny.
He has plans of creating bigger prizes,
he's already had like 200 submissions, and he's already picked 2 winners.
His business is getting a lot of recognition, and he's starting to deals with local business for advertising.
Do you think his business model is good? is there room for expansion?
Would you sign up for something like this?
