In the UK, recent months have seen a proliferation of ‘win a house’ prize competitions, raffles and sweepstakes, offering an attractive alternative to either selling or buying a home the traditional way.

In an ailing property market, the attraction in running a property competition is obvious, and where well executed can be a way to sell your home at a good price.

However, quite a number of competitions have been postponed or canceled, due to questions about their legality, whilst others have simply failed to sell the required number of tickets.

It is therefore worth taking a step back to consider how players might perceive and compare competitions. This could serve as a quick checklist for those wishing to organise their own competition, as well players looking to buy a ticket for a house competition.

Assuming a competition organiser has run the numbers and found a reliable and cost-effective way of setting up and marketing the website, here is a brief review of some key considerations from the player’s perspective.

Of course people vary in their perception, so please let me know if what other considerations you think are important.

Is it legal and can I enter?

This is one of the first questions potential players are likely to ask themselves when coming across a new prize competition. Given the high level of publicity surrounding the Oldborough Retreat competition setback, reassurance on this issue will help players feel confident they are not simply throwing away their money when buying a ticket.

Competition organisers need to be very clear about who can enter their competition. In practice, what is considered a lottery, a game of skill, or gambling varies between countries. Similarly, the age at which one is allowed to take part in such a competition will also vary.

Any perceived attempt to avoid this topic (or to leave it unaddressed) could lead your customers to draw their own (negative) conclusions. Given how easy it is to share opinions online, it only takes a small group of sceptical players to hamper the reputation and marketability of a new competition. Competition organisers need to make sure they have done the necessary research.

In addition to simple instructions on how it works, it can be helpful to provide brief answers to some of the most commonly-asked questions about the legal framework of the prize competition. On top of this, some players may also wish to contact the promoters directly for further details. It can help to offer different ways of getting in touch, but a telephone number, address, and email are essential.

The terms and conditions of a prize competition – which essentially represent the contract between the competition organiser and each player – need to be clear, unambiguous and easily accessible. At the same time, players should feel that any important elements of the terms and conditions are already presented to them in other parts of the site, to avoid any sense that this information was not put forward visibly by the organiser.

Who is running the property prize competition?

The identity of the competition organiser will be a big factor in determining trust or the lack of it. However the key seems to lie more with how you present yourself rather than who you are, whether a company or an individual.

Although it might be expected, that a known brand would be more readily trusted to organise a competition successfully, both scenarios come with their own advantages and disadvantages.

A good example of individuals successfully adding a personal touch to marketing their competition is Brian and Wendy Wilshaw’s Oldborough competition. Their story was a simple one, which players could sympathise with, and easily relate to.

Some websites almost hide this information, in an effort to minimize the number of things that could ‘distract’ a user from playing. However, unless you have a very strong brand, players should not be required to search your website in order to find out who is actually organising the competition.

As a player, I don’t think I would even consider entering a competition where the identity of the organisers was unclear or hidden away.

What type of property can you win?

As with everything, presentation of the prize can be key to the success of a competition. Players can be interested in a property for a variety of reasons, including: its valuation; its location; how easy it could be to sell it afterwards; the costs of maintenance; its size and appearance; and the potential for upgrading it (including any repairs required before moving in).

It goes without saying that a property with a strong ‘wow’ factor, such as the Cheltenham House featured on the Grand Designs TV show, can attract a lot of interest.

At the same time, a property that doesn’t appeal to a mass audience can be desirable to a niche community, provided it is marketed in the correct way. Regardless of the type of property on offer, a well-presented website featuring attractive photos and descriptions of the prize can help convince more players to enter a competition.

Each property is different, so it makes sense to provide any information that potential owners could find helpful. For example, a recent valuation could provide clarity, but also reinforce the desirability of the prize.

How much does each ticket cost?

Although players can be expected to consider the cost of a ticket in relation to the odds of winning the competition (see below), the up-front cost of entry is an important decision point in itself. With competition entry costs ranging from the price of a restaurant meal to £1,000, players are faced with a wide range of choices.

As with any product, it is likely that beyond a certain price, a portion of players will not buy a ticket, regardless of how good the odds may be or how attractive the top prize may seem. Similarly, players may also be more risk-averse when faced with a new competition or a promoter they are not familiar with – leading them to have reservations beyond a certain price.

On the flipside, some players may be more willing to take a risk for a low ticket price – even though this may result in lower odds of winning. Finally, depending on movements in exchange rates, competitions may appear more or less appealing to players in other countries over time.

What are the odds of winning?

The number of tickets for sale and the perceived difficulty of winning a competition also represent important decision factors for players. For this reason, it is not uncommon to see comparisons with the relative odds of winning the UK’s National Lottery with the chances of winning a given competition.

For all prize competitions, raffles or sweepstakes, players are likely to consider the maximum number of tickets for sale in their evaluation, together with the maximum number of entries per player. As we mentioned previously, for a very low ticket price, some players may be willing to accept lower odds of winning (or a more challenging competition), as their potential loss is more limited.

At the same time, where prize competitions rely on a certain degree of skill, the odds of winning cannot be evaluated simply by considering how many tickets are for sale. Hence, should some players perceive the skill involved to be too high, they may decide not to enter – regardless of the number of tickets being sold.

Is the competition likely to successfully sell all tickets?

Players can often evaluate (more or less consciously) how likely it is that a competition will successfully close on or prior to its completion date. To do so, they can take into account all the elements described in this article, particularly the number of tickets for sale and the price of each ticket in relation to the valuation of the property, and the quality and visibility of the competition.

One must present a compelling case to players to convince them that it is worth risking the price of a ticket (or multiple tickets). The last thing a player wants is to see the competition suspended, postponed, having their tickets refunded, or even worse, losing their money if no winner is ultimately picked.

It is therefore up to a promoter to help build confidence in their competition, by setting realistic targets in light of the resources (marketing, financial, etc) available to them. Last but not least, it should be made absolutely clear what will happen if not all tickets are sold.

How visible is the prize competition or sweepstakes?

As demonstrated by the Oldborough Retreat competition, it is possible to close a competition early with the right level and quality of marketing and PR. This is often a key factor determining the success of a prize competition, sweepstakes or lottery. If marketing is being part-financed by ticket sales during the competition, it will be a key consideration when setting the number of tickets for sale.

Not only will a well-marketed competition have a better chance of reaching the right audience, there is also a chance that some players may conclude that it has a better chance of succeeding. Some players may even trust that the competition organisers are more trustworthy and ‘serious’ if they are able and willing to run a successful marketing campaign.

Unless they consult a website designed to help them find and compare property competitions more easily (such as Win a House), the average player may only come across a limited number of competitions. Promoters must therefore use every opportunity to help enhance the visibility of their own competition.

Carrying out the proper research beforehand can also help save a lot of money by investing in marketing via the appropriate channels. For some properties, it may be more appropriate to advertise the competition in niche publications, ultimately leading to greater visibility and a higher conversion rate. In terms of building an online presence, it can also mean building relationships and links with other quality specialised websites, to help provide targeted traffic.

Quality of the website and content

There are few second chances online, when it comes to selling a product. Your website speaks for itself, and the impression you leave with visitors will help determine your success in inviting them to take part in your prize competition.

The key however lies less with technical sophistication than simply quality of presentation. Competition organisers simply need to ensure their website looks professional and is easy to use, as well as complete in terms of information and required functionality.

Security and transparency

Given the number of online scams, the risk of viruses, identity theft or just losing money due to poor technology or dishonest practices, consumers are understandably cautious online. Prize competitions, raffles and sweepstakes are no exception.

Players must feel confident that their account and payment details will be secure at all times, and that payments will go through without difficulty. This can include receiving confirmation of their entries, as well as any additional follow-up where necessary.

Competition organisers will also have to choose one or several payment processing providers to handle ticket payments online. Well-known brands such as PayPal or Google Checkout carry the added advantage of being generally recognised and trusted payment providers.

Another important thing to check is whether your chosen payment provider is happy to accept payments for what might, depending on jurisdiction, be considered a gambling activity.

If the website in question requires you to register an account, players should also ensure that the competition organisers are keeping their details secure. For competition organisers, the best way to achieve (and communicate) this, is simply to make sure that account login pages use security encryption.

Without getting into technical details, this simply means that instead of the web address starting with “http”, it starts with “https”. Without encryption your user’s login information can be readily intercepted and read!

For the price of a few tickets, competition organisers can make sure they don’t end up with a data protection scandal on their hands. It is surprising how many current win a property competition websites do NOT have this in place.

Players will also want to be reassured that the prize competition itself is run in a transparent and fair manner. Beyond obviously making sure to clarify the overall process, providing regular updates on progress, as well as generally being accessible and communicating frequently with players will help maintain clarity, aid transparency, and ultimately build trust.

In order to further underline that the competition process has been thoroughly audited to ensure it is honest and secure, some competition organisers go to extra lengths to explain how competition entries are handled, and how the winner is picked once all tickets have been sold. In many cases the winner is determined in the presence of a lawyer, as well as other witnesses, or at a public event.

Are any charities involved?

Some players may favour prize competitions that also contribute to a good cause. Although this often has a direct impact on their odds of winning (in terms of the number of tickets for sale or the price of each ticket), some players may be willing to accept lower odds in the knowledge that regardless who wins, a designated charity will benefit.

In addition, association with a charity can help enhance the promoter’s own reputation and trustworthiness in the eyes of the players, provided the charity also acknowledges the relationship, and perhaps even helps promote the competition.

Are there any discounts or extras?

As with any promotion, prize competitions can be made more attractive for players by using a variety of other marketing techniques. These can include setting aside free tickets, offering bulk discounts or giving away vouchers or bonus prizes.

Once again, the legal and adverting standards frameworks surrounding these types of offers should be considered carefully before offering such incentives. On top of this, promoters should evaluate the technical and logistical implications of setting up these types of offers in a reliable and cost-effective way.

Contact details and customer service

Although it may be tempting to simply provide an email address or contact form, some players may feel the need to speak to someone directly on the telephone. This can help them confirm that the competition is being run actively and provide them with a quicker response. In some cases, some websites offer players a freephone number to encourage them to call directly.

It could also be worthwhile to feature an instant chat service directly on the website, for players that do not want to use the phone but would still like a more direct form of interaction with the promoters. These days, it can be relatively simple and cost-effective to use a third-party service, with a number of companies providing instant chat software online.

While providing customer service via telephone or chat can take up more resources than simply offering feedback via email, when run efficiently it can also help contribute to a positive and professional impression.

As with any communication with players, the style, form and speed of responses should also be considered carefully. Just like any service dealing with customers, good planning and preparation, combined with a professional approach can make a difference in terms of building a better relationship with players.

Conclusion

Although running a successful prize competition online can seem surprisingly simple at first glance, this can be misleading. Getting all aspects right for players can be a delicate balance. With more win a house competitions launched every month in the UK, it is more important than ever to consider all the different aspects of this type of promotion in detail. Players can be suspicious of promotions that appear too good to be true, opportunistic or poorly presented.

By working with reliable partners and suppliers to help address all these different elements, prize competition promoters can help increase their chances of completing their competition, raffle or sweepstake within the desired timeframe. Although it can be tempting to launch a prize competition as quickly as possible, the downside of having to postpone or suspend a competition because of an omission is high. While it can take a lot of time and preparation to address all aspects of a prize competition comprehensively, it can also help meaningfully increase the chances of success of this type of promotion.

If you have already run your own property prize competition, or are in the process of setting one up, we would be interested to hear from you. Do you have any advice to give to others to help them save time and avoid any pitfalls in the process? Likewise, as potential a player, what else do you look for before entering a prize competition?

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Re: How do players compare property competitions?

Hi and thanks for the great info. I do think it's all common sense, but then again judging from what some people came up with, it's a useful checklist of sorts.

Chris , 08 Mar 2009

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