June 3, 2019 Bianca Altomare
A prime example of “Shop & Win” programs are the ongoing programs run by 80Eighty. For 80Eighty, it all began in a basement where it seems all good ideas begin. Three men, took a leap of faith, quit their jobs, gathered and invested their life savings and dedicated themselves to work, long hard work, following their hearts, their passion, looking to show the world something different.
Since starting the business in 2014, 80Eighty has grown from a three-man team working out of a basement inflating to three shops, now combined into a 14,000 sq. ft. custom warehouse where they run all aspects of the business. This team has grown into a diverse group connected through the passion for motorsports, all from various backgrounds but holding a common interest: modifying cars.
Essentially 80Eighty provides high quality gear and products for all hyper car enthusiasts, but it comes with an added bonus, the marketing plan added a sweepstakes that originally began with one sweepstakes a year, they now run one sweepstakes every 45 days.
It’s a pretty simple way to promote their brand, create awareness and increase sales of collateral materials, such as T-Shirts, Hoodies etc. How it works is pretty creative for sure, for every $1 spent on their site, customers are given one entry into their dream car giveaway. At this point in time, 80Eighty has held 24 dream car giveaways very similar to one another, with the grand prize being a tuned-up car with a stack of cash. They also occasionally give away secondary cash prizes in appreciation of those that support the brand. These programs provide true positive brand engagement and consumer interaction.
Is there a catch? No, every $1 spent online is converted into 1 entry right into the dream car giveaway allowing for a low barrier to entry that is welcoming to anyone. Simple. 80Eighty uses a custom-built platform and process that tracks and calculate entries, interestingly enough in this case 80Eighty sends off data to a third-party sweepstakes company like RAVEN5 to handle the legal requirements, winner notifications, bonding, insurance etc.
What makes RAVEN5 different? We’ll we handle the program from soup to nuts, or start to finish, by doing so we make your programs affordable, professional, legal and simplify the process. The RAVEN5 team will also provide merchandise sourcing, fulfilment and shipping.
The RAVEN5 team will ensure that the look and feel of your custom contest is inline with your existing corporate strategy and branding, appealing to both your current and prospective consumers. At the same time, we ensure your sweepstakes, contest or giveaway is unique, engaging and ultimately successful.
RAVEN5 is the leader in contests and sweepstakes. We provide an all in one solution backed by over 10 years of experience running promotions for major brands across all industries.
RAVEN5 uses a customizable platform that rewards customers for purchases or other actions that can then be converted to discounts or sweepstakes entries. We can register in our system the number of points (or entries in a case such as 80Eighty’s) each customer can earn per dollar spent. For example, the ‘Dream Car Giveaway’ offering is $1 spent on 80Eighty merch gives you 1 entry into the sweepstakes.
Through our process, how points are earned is totally up to you, your team can determine how you want to personalize your own sweepstakes. Having this points and rewards system allows all incoming purchases that were made within the start and end date (pre-determined in the rules), to be tracked and run on its own, completely automated.
At the end of the program, RAVEN5 will select, notify and handle the applicable tax forms for the lucky winner(s). When selecting the winner(s), we use a random computer-generated process that tallies all entries to ensure a fair and compliant selection process.
Your sweepstakes is built and ready to go! Hold up – your job is just beginning. Launching a sweepstakes or contest is the first step of many in ensuring you have a successful program. Remember that old motto, if you build it, they will come? Sorry, it does not apply to anything online or on the internet, and it certainly doesn’t apply to a sweepstakes or contest.
A few of the tactics you can leverage to get your sweepstakes or contest front and centre with your consumers:
• Email marketing
• Social media posting – Facebook, Instagram, Twitter, Pinterest
• Paid advertising – Social Media
• Paid advertising – Google Ads
• Paid advertising – Email List rental
• Public Relations
For more in-depth information on marketing your sweepstakes or contest, review this blog post on Contest Amplification. If you’re not sure where to start, we’ll gladly assist in marketing the sweepstakes to ensure it’s a success.
When choosing to hold a contest or sweepstakes, it’s necessary to understand that not all jurisdictions have the same rules and restrictions surrounding holding such an event. Some locations have more barriers to enter than others.
When running a sweepstakes open to residents of the U.S., you may be required by law to register the promotion with specific state agencies and to obtain sweepstakes bonds. This applies to any sweepstakes that offers total prizing valued at $5,000 (USD) or more. As part of the registration and bonding process, the company running the sweepstakes (the Sponsor) is required to pay a fee based on a percentage of the total ARV (approximate retail value) of the prize(s).
Additionally, any resident of the U.S. that wins a prize valued at $600 or more must submit a signed, legible copy of an IRS W-9 form to the Sponsor. These winners will be issued a Misc-1099 tax form for the year in which the prize was won. The total ARV of the prize will be reported on the form, to later be filed with the winner’s income taxes. If your company awards a prize over $600 and does not issue the 1099 tax form, you could find yourself in hot water in the IRS.
Many sweepstakes avoid opening up to residents of Quebec because of a tight string of laws set out by Quebec’s Régie des alcools, des courses et des jeux (the Régie). Many steps have to be taken before a company can open a sweepstakes to Quebec residents. RAVEN5 frequently works with the Régie and can assist you with running a promotion in Quebec, ensuring you’ve covered everything off along the way.
Before accepting a prize, an affidavit must be completed and signed by the winners. The affidavit (sometimes referred to as a declaration and release form) is a legal agreement used to confirm acceptance of the prize and verify eligibility requirements. Typically, the winner must accept the terms and conditions of the promotion, provide their information, and agree to a liability and publicity release.
Additional stipulations can be added here such as an NDA (non-disclosure agreement) or exclusive rights to use photos or videos submitted or taken of the individual(s).
Dependent on the number of prizes, often times multiple winners need to be pulled. In this case the team responsible for pulling names here at RAVEN5 will follow the rules outlined and reach out to the winners. If there is no response within the timeframe stated in the rules, the runner up will then be contacted. Sit tight! It could take a few days or longer to complete the process and keep in mind that some winners might actually turn down a prize, believe it or not. This happens for various reasons, such as tax implications, additional costs to pickup/coordinate delay, not being able to use the prize, etc. Nobody enters a contest assuming they’ll win nor do they think about these things.
Do you want to start seriously branding your business, but don’t know where to start? Stop your worrying! Here at RAVEN5 we have all the ins for sourcing quality products at affordable prices. Below is a rough example of product sourcing costs for some basic items such as short or long sleeve T’s and hats. Keep in mind the prices listed do not factor in shipping and fulfillment costs.
Product Sourcing – Cost per item
Canadian Funds, min 100 items,
Men’s Long Sleeve T’s (2 versions:black & white) – Retail $40 $11.70
Men’s Short Sleeve T’s (2 versions:black & white) – Retail $35 $6.80
Ladies Long Sleeve T’s (2 versions: black & white) – Retails $40 $11.70
Ladies Short Sleeve T’s (2 versions: black & white) – Retail $35 $6.80
Cap NuFit Pro Style (1 version) – Retail $30 $11.40
Cap Standard with leather or Velcro strap (1 version) – Retail $25 $8.40
*Note: Example only – Pricing above may vary.
We also offer optional sourcing and fulfillment service so no need to worry about arranging for winner outreach, pickup of prize(s), coordinating the delivery of a vehicle or booking a trip for your contest or sweepstakes winners. Let us know what you’re thinking, and we’ll make it happen. Shipping and fulfillment costs will vary depending on prizing, quantity, location, package weight and size.
• Take a look at how to ensure your contest or promotion is legal with complaint rules.
• Ensure you have prepared everything correctly before launching your giveaway by reviewing our sweepstakes checklist.
• Read more on registration and bonding requirements across North America.