Let’s have a bit of a heart-to-heart about prize draws and competitions. We all love a freebie, don’t we? The excitement of winning something—whether it’s a luxury holiday or just a nice little treat—can be such a buzz. But here’s the thing: few prize draws are just about giving away free stuff for the sake of it. Often, they’re run by small businesses that are trying to raise awareness or grow their brand. So, while we’re all in it for the fun of a free prize, it’s worth remembering that there’s a lot more going on behind the scenes.
It’s easy to think that entering a competition is no big deal and that we can just sit back and enjoy the spoils without giving anything in return. But let’s have a proper chat about why it’s worth understanding the business side of prize draws and why it’s fair to give a little back—especially if we want these opportunities to keep coming our way.
Table of Contents
1. Why businesses run prize draws
Let’s start with a little insight into why businesses run prize draws. It’s not just about being generous or giving away free stuff for the sake of it. Prize draws are a marketing tool, plain and simple. For many small businesses, running a giveaway is a clever way to raise awareness, increase followers, or build a customer base. It’s a way to get noticed in an increasingly crowded marketplace. After all, who doesn’t love the chance to win something?
But here’s the kicker—businesses need something in return. Whether it’s your email address so they can stay in touch, a follow on social media, or even a little bit of buzz around their brand, there’s usually an exchange happening. They’re giving away a prize, sure, but they’re also hoping for something that will help them grow.
So, when we as compers enter a prize draw, it’s worth remembering that we’re part of this exchange. It’s not just about winning; it’s about helping a business achieve their goals, too.
2. Not every business that charges for tickets is a scam
One of the big things I see in the comping community is a bit of distrust when a business charges for competition tickets. There’s this knee-jerk reaction to think, “Oh, they’re charging for tickets—must be a scam!” But let’s take a step back for a minute. Not every business that asks for money in exchange for a chance to win is doing something shady.
In fact, a lot of legitimate businesses run paid prize draws to help cover the cost of the prize and their marketing efforts. Running a competition—especially a big one with a valuable prize—doesn’t come cheap. There’s the cost of the prize itself, the marketing, the platform fees, and so on. For some small businesses, asking for a small fee to enter is the only way they can afford to offer a fantastic prize.
It’s also important to realise that paid prize draws aren’t just about the money—they’re often designed to engage a more committed audience. If people have paid to enter, they’re more likely to follow through, share the competition, and engage with the business. It’s a bit like putting skin in the game. So, before writing off a competition just because there’s a fee, take a moment to think about the business behind it and what they’re trying to achieve.
3. You can’t have everything for free
Let’s be honest—free prize draws are fantastic, and as compers, we’re always on the lookout for those no-cost opportunities. But here’s the thing: if everyone treated prize draws like an endless buffet of free stuff, they wouldn’t last. Businesses need to get something out of the deal, and if there’s no value exchange, they’ll stop running competitions altogether.
The reality is that nothing in life is truly free. Even in a free-to-enter competition, you’re still usually giving something in return, whether it’s your email address, social media engagement, or even just spreading the word about the business. And that’s okay! It’s a fair exchange, especially when you consider the costs involved in running a competition.
If we as compers want to keep enjoying these opportunities, we need to be realistic and fair. That might mean entering competitions where a purchase is required or where tickets come with a price tag. It might also mean engaging a bit more with the businesses that run the prize draws, rather than just hitting “enter” and moving on.
4. Small businesses need your support
Now, I’m going to get a bit personal here because I think it’s really important. A lot of prize draws are run by small businesses—the kind of businesses that don’t have massive marketing budgets but are working hard to make a name for themselves. These businesses are often the ones offering the most creative, interesting prizes because they’re passionate about what they do.
When we enter a competition run by a small business, we’re not just in it for the freebie—we’re supporting a brand that’s trying to grow and succeed. By engaging with their social media, signing up for their newsletter, or even sharing the competition with our friends, we’re helping them get the traction they need to thrive.
It’s also worth remembering that a small business might not be able to give away big cash prizes or luxury holidays like the bigger brands can. But they might offer something really special, like a handcrafted product or a unique experience that you wouldn’t find elsewhere. These are the kinds of businesses that really benefit from a bit of love and support from the comping community.
5. Engage with the brand—you might be surprised
Here’s a little tip—if you take the time to engage with the businesses running the prize draws, you might end up getting more out of it than you expect. I’m not saying you have to write a glowing review or become their biggest fan, but a little interaction can go a long way.
For example, if a business asks you to follow them on social media, don’t just follow and forget about them. Like a few posts, comment if something catches your eye, or even share their competition with your friends. Businesses notice this kind of engagement, and it can lead to all sorts of good things. You might even get early access to future competitions or special offers down the line.
And let’s not forget that engaging with a brand can actually make the prize feel even more special if you win. If you’ve followed their journey and supported their business, winning their prize becomes more than just a freebie—it feels like you’re part of something bigger.
6. Paid entry competitions help keep businesses afloat
Now, I know the idea of paying to enter a competition can be a bit of a sore spot in the comping world. We all love a free competition, and when a business starts charging for entry, it can feel like they’re asking too much. But here’s the thing—paid entry competitions are often the lifeline that helps keep small businesses afloat.
Charging for entry allows businesses to offer bigger and better prizes. It also means they can afford to run more frequent competitions, which is a win-win for compers. Without some form of revenue, many businesses would have to stop offering prizes altogether, and that would be a real shame.
So, while we’d all love for every competition to be free, it’s worth considering that by paying to enter, you’re not just getting a shot at a prize—you’re also supporting the business and helping them continue offering great opportunities in the future.
7. Be fair—it’s a two-way street
At the end of the day, prize draws are a two-way street. Yes, businesses offer prizes, and we as compers get the chance to win something fantastic. But there’s also an element of fairness that comes into play. If we want businesses to keep running competitions, we need to give a little back.
That doesn’t mean spending money on every competition you enter. It might just mean taking a few minutes to share the competition with your friends, leaving a nice comment on the brand’s social media, or signing up for their newsletter and staying engaged. It’s about showing that you’re not just in it for the freebie—you’re also willing to help the business achieve their goals.
And if you do win a prize, don’t forget to give the business a shout-out! A photo and a little post on social media showing off your prize and thanking the business can go a long way in helping them gain more visibility and attract new customers.
Wrapping up
So, the next time you’re entering a prize draw, take a moment to think about the business behind the giveaway. They’re not just handing out free stuff for fun—they’re using competitions as a way to grow, build awareness, and engage with potential customers like you. Whether the competition is free or paid, it’s worth engaging a little more with the brand and giving something back. After all, nothing in life is truly free, and by supporting businesses, we help ensure that there will be plenty more prize draws to enter in the future!
Let’s keep the comping community fun, fair, and supportive for everyone involved.