Why a Giveaway?

Companies give away products, trips, and cash in order to promote their business. They have a lot to gain. When they give away products in a sweepstakes or contest, they are always looking to the bottom line. Giveaways are a time-tested method of promoting an old business or new product, building a customer base, improving customer loyalty, and gaining positive publicity.
Interested in learning more about what a sponsor gains from giveaways? Read on:

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Email address:

Many, many companies use giveaways to build their mailing lists. Some just gather your email address, while some require you to sign up for a newsletter in order to enter, and still others give you an opt-out or opt-in for the subscription. (An opt-out means you have to tell them you don't wish to be included, whereas an opt-in means they won't email you unless you tell them you want them to.) Mailings are effective advertising tools, and newsletters often gather good business response. From the company's point of view, a gift card, cash, or product giveaway is a small price to gain this valuable data.

Positive attention:

You can't help but have positive thoughts about a company that's giving away cash or prizes, and companies want that image in your mind. Even a big giveaway is a relatively cheap way of gaining good will from consumers.

New product introduction:

Sometimes giving a new or updated product away is the easiest way to let the public know that it exists. Book publishers, for example, give away enormous numbers of free books for reviews or as prizes in sweepstakes. There are almost always giveaways when a new TV show is released as a DVD set, because the producers know it's a great way to make you aware the DVD is out there. If you don't win, you might just decide to buy it. New movies are also often promoted this way. Win Prizes Online frequently features gift bags or tie-in giveaways when major new movies are released, because this creates that all-important "buzz."

Return visits:

Some giveaways require you to visit a website, listen to a radio show, or follow a Twitter feed. This allows you to learn more about the company or product. You may also choose to return, perhaps just to look for more contests. The next thing you know, that's your favorite radio station! You find new contests to enter and the company gets new customers: Everybody wins.

Links from other websites:

Companies build web presence by getting links from other websites back to their site. This helps their website's "authority" and can improve their search engine presence. If a sweepstakes or giveaway is picked up by other websites (like ours), the company gets a link back to their site, which has value to them.

These are the major reasons that companies host giveaways, and they allow you to enjoy the exciting chance to win big!