5 Ways to Avoid Legal Issues when Running a Sweepstakes

By: Jennifer French | In: Ask Sync Marketing, Best Practices, Contests, Legal and Prize Fulfillment, Marketing

Running an online sweepstakes or contest is an effective tool to engage consumers and elevate your brand or company. There are many things to consider when including a sweepstakes such as budget, run dates, eligibility, and prizing. The most important and often overlooked items are the legal parameters of a campaign. If not addressed in advance, it could derail all your efforts. Below are 5 ways to avoid legal issues when running a sweepstakes.

Official Rules and Abbreviated Rules

Think of this as your sweepstakes’ user manual. The official rules should be a blueprint of your campaign and should clearly outline eligibility, campaign run dates, how and where to enter, prizing and the total ARV. It’s also important to include when and how a potential winner will be notified. Entrants should have a clear understanding of how the sweepstakes works and there should be no surprises. Abbreviated rules are a shortened version of the full rules that should give entrants a direct link to the full set of rules. Here is a helpful article of what should be included in the rules.

Bonding and Registration

Did you know that certain states require you to bond and register your promotion? Usually, it’s dependent on the total ARV of a campaign, but it varies by state. Neglecting to bond and register and not adhering to the timing deadlines for when you can submit your registration and bonding could amount to hefty penalties. Here are links to New York, Florida and Rhode Island that specifically addresses their requirements. 

Legal Review of Marketing Materials

You may have your official rules buttoned up, but did you know there are legal disclaimers that should appear on your marketing materials such as emails, POP and social media posts? Also, your marketing materials must not be misleading to entrants. A full-service sweepstakes agency can guide you on what is required to keep your promotion legally compliant.

Social Media Restrictions

Social media campaigns are fun and inexpensive, but they do come with legal requirements which are constantly changing. Each platform has their own guidelines that you must following in order to run a campaign. Guidelines change quite frequently so it is a good idea to consult with a legal professional who is up-to-date on all of the changes. If you can’t get outside help, it’s a good idea to go to each platform. Here are links to Facebook, Twitter and Instagram’s policy pages. 

Privacy and Collecting PII

Consumer privacy is a very hot-button item. There are many rules and regulations about collecting and storing personal identifying information (PII). Consulting the laws for each participating state and country if international is essential before running a campaign. For example, here is a helpful article about the CCPA law that affects promotions running in California.

While many companies opt to use inexpensive sweepstakes software to build and manage their campaigns, they often overlook the legal elements. It may be less expensive, but in the long run, you may end up paying heavily in fines and even have your promotion shut down mid campaign. Now that you know the 5 ways to avoid legal issues when running a sweepstakes, consider using a full-service agency like Sync to manage your campaign.

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4 Reasons to Run a Contest Now

By: Julie Link | In: Ask Sync Marketing, Contests, Legal and Prize Fulfillment, Marketing, sweepstakes company, User Generated Content

The last 12 months have been unlike anything any of us have ever experienced. 2021 is the year for companies to give back to consumers more than ever before. One of the best ways to give back is through running contests. Today I will discuss 4 reasons to run a contest now. 

People want to feel connected

Now more than ever, people want to share their experiences as a way to connect. This is a great opportunity for brands to ask their customers to share their story for a chance to win something truly helpful to them. Crate and Barrel is currently asking engaged or recently married couples to share their story for a chance to win everything in their registry (up to $2,500). In addition, Crate and Barrel will make a $1,000 donation to Feeding America® on behalf of each couple.

Feel-Good Content

People are ready to start getting good news again! What better way than to run contests that help share good news and create positive change. Aerie is continuing their Changemakers initiative for a second year to celebrate consumers who are making a difference and reward them with the necessary funds to continue their work. 20 amazing applicants will win $20,000 towards their personal missions. This campaign spreads good vibes while celebrating the efforts of people making changes in their community.

Consumers are on their phones now more than ever

Since you already have a social team trying to drive awareness and followers, why not add a contest? It’s a win for you and a win for consumers.  A social contest is a great way to garner user-generated content and followers. With consumers on their phones now more than ever, having them upload content all while promoting your brand along the way is a no brainer. This also builds awareness for your brand, allows you to learn more about your consumer, and leaves them feeling seen and rewarded. As stated in outgrow.com, companies who run contests get an average of 17,500 new followers through a contest: 

Have some Fun

Did you see the Big Game this year? If so, you probably saw the commercial for Mountain Dew’s Major Melon Bottle Count contest. Viewers were asked to tweet out how many bottles of Mountain Dew appeared in the ad for a chance to win $1 million dollars. Within minutes, there were thousands of tweets. Not everyone has Pepsi’s budget, but you get the idea. Offering consumers a fun contest will get them excited, engaged and will leave them with a good taste in their mouth about your company or brand (pun intended). 

I hope these 4 reasons to run a contest now, were helpful. There are an assortments of ways to run a contest, and this year is the time. Let’s give back to our communities and let their voices be heard. Contact Sync today for help brainstorming your next campaign.

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Including Sweepstakes in Your 2021 Marketing Budget

By: Julie Link | In: Ask Sync, Ask Sync Marketing, Best Practices, User Generated Content

So, 2020 just happened…Let’s try to quickly put it behind us and begin planning for all the positives 2021 will hopefully bring. With more certainty of a better year ahead, marketers can now put more of their focus on finalizing a marketing plan and budget for the new year. Today I will discuss three reasons why including sweepstakes in your 2021 marketing budget is a good idea. 

1. Effective ROI

With a turbulent 2020 in the rear-view mirror, you should look forward to what will give you the best return on your investment in 2021. Low cost, high reward campaigns are a great starting point. Sweepstakes are known for being an affordable yet effective marketing strategy. Sweepstakes and contests allow you to engage with your consumers, obtain new email subscribers, and leave them both feeling appreciated. 

“… marketers might prioritize ROI over other metrics and avoid high-risk options. Flexibility is key, and it’s time to reevaluate your marketing budget so that it actually meets your company’s needs.” – Hope Horner from Business2Business

2. Social Reach

Running a social media sweepstakes or contest can greatly increase your follower base, create buzz and produce usable UGC. And in a year people are using social media platforms to connect now more than ever, it’s a simple and effective way to build your base and connect with those already in your base. In the article, 23 Mindblowing Statistic on Giveaways and Contests in 2020, Outgrow mentioned that 34% of new consumers are acquired through social contests and brands gain an average of 17,500 new followers through organizing these campaigns on their page. 

For 2021, I would recommend running social media campaigns where you ask your consumers to tell their story. People want to share and want to connect, so give them a platform to do so. If you’re still in need of ideas for what type of social media sweepstakes to run, check out this Sync article where we discuss the top 5 social media sweepstakes ideas to engage consumers.

3. Consumer Loyalty

There’s never been a better time to reward your loyal and dedicated consumers than after a year where a majority of people’s budgets were stretched thin. If they have stuck with you, now’s the time to give back. When running a sweepstakes or contest, we always recommend giving away many smaller prizes and a larger overarching grand prize. The large prize will attract consumers and the smaller prizes will give back to more people. In addition, for 2021 we highly recommend surprise and delight offers to every consumer who participates. This is the time to give back and thank your consumers for hanging in there with you. Here, Clickz discusses why customer marketing is important for 2021. 

While we could list many more reasons as to why including sweepstakes in your 2021 marketing budget is a good idea, we feel that after a crazy year, simple is better. Connection is key…so connect, listen, and give back to your consumers.

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5 Reasons to Run a Quiz with a Sweepstakes

By: Julie Link | In: Ask Sync Marketing, Marketing

Taking a personality quiz or participating in a poll is all the rage these days. Who doesn’t want to be told if you are an introvert who likes to cuddle up next to a fire or an extrovert who is always keeping busy? Quizzes are very popular, especially on social media sites, so it makes sense to take advantage of this marketing tool. While running a quiz on its own is a great marketing tool, in this article I outline why adding a sweepstakes component  has exponential benefits. Here are my 5 reasons to run a quiz with a sweepstakes.

1 Data Collection

You can learn so much about consumers and potential consumers when running a quiz. The information you receive from the quiz can be used for future marketing opportunities for your brand. And, you can target all of the new email subscribers you obtained through the sweepstakes and tailor your messaging to their specific likes. Second street also believe data collection is a benefit as they mention in this blog post.

2 Engagement

Quality engagement is so important when running a sweepstakes. If a consumer is willing to go to the effort to fill out a quiz, you know they have some curiosity for your brand. An effective add-on to any quiz with a sweepstakes is to offer a surprise and delight coupon after entry. This will lead to further engagement and traffic to your website, ideally leading to a sale.

3 Reach

As previously discussed in my post, “5 Ways to Increase Email Subscribers with a Sweepstakes,” people inherently want to share things about themselves to others. A quiz in no different. After you get your result, it’s common to want to share it with the world. This is an effective way to increase your reach when running a sweepstakes. You can even offer entrants extra entries for sharing their result with their friends on social media.

4 Reward

Make sure the prize is grand. At Sync Marketing, we always recommended including several smaller secondary prizes and a larger overarching grand prize. The smaller prizes give entrants the feeling that they have a better chance to win and the larger prize can be eye catching and tend to motivate people to participate. Whether it’s cash, a trip or a gift card for your site, make sure it’s worth the effort for your consumers to enter. As with all the reasons, great prizing is a fantastic way to increase the number of people who enter your sweepstakes and take your quiz. 

5 Fun!

Since quizzes and sweepstakes are so popular, offering them allows consumers to have a fun and positive association with your brand and/or products. Plus, the more memorable engagement you have with consumers, the higher chance they will return to your site again and hopefully purchase something while there.

In conclusion, running a quiz with a sweepstakes is a fun and effective way to gather consumer information, email opt-ins and create a positive interaction with current and potential consumers. Here is a current quiz Sync is running. For more information on Sync Marketing’s quiz with a sweepstakes feature, contact us today.

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Common Mistakes When Running a Sweepstakes

By: Jennifer French | In: Ask Sync, Ask Sync Marketing, Best Practices, Marketing

Running a sweepstakes is an effective way for a business to obtain new customers. It’s also a great tool for staying connected to current customers and rewarding them for their loyalty. It’s a very cost-effective marketing tool when done correctly. When contemplating running a sweepstakes, there are important things to consider. Below I will discuss some common mistakes when running a sweepstakes.

No Official Rules

This is probably one of the most important mistakes to avoid. We find that many company’s in-house legal teams do not necessarily specialize in marketing law, so a lot of times, this critical element is neglected. There are a lot of intricacies, especially when it comes to running a sweepstakes on social media platforms, which change their policies frequently. There are also state regulations to also be aware of that may affect your promotion. They are also crucial for entrants as they outline the details of the promotion such as in eligibility, run dates, prizing, etc. Here is an article on the importance of drafting sweepstakes rules. 

Weak Prizing

Nothing kills the excitement of a sweepstakes than an insignificant prize. Would you take the time to enter for a branded water bottle or beach ball? Well most likely, neither will other consumers. If you are going to ask people to do something, give them something worthwhile in return. Consider a cash prize or shopping spree if you are in the retail sector. Also, awarding multiple prizes gives people the sense that the have a better chance to win.

Over Complicated 

You may be promoting an exciting brand or product, are offering amazing prizes and have your legal buttoned up but you are asking entrants to do too many things. The more you ask from the entrant, the higher the risk of drop off. This is especially true in the age of online scams and hacking. People are just not comfortable providing their personal identifying information (PII). Consider just asking for name and email address. This is also true about the entry process. We’ve seen promotions asking people to upload photos, answer essay questions, create a video, etc. Depending on what you are trying to accomplish, sometimes less is more.

Choosing the Wrong Platform 

If your goal is to obtain email opt-ins, a simple online entry is the best way to go. You wouldn’t want to run a social promotion in the instance because emails are not typically collected. The opposite runs true if you are looking to get your message to go viral. A social sweepstakes would be a good choice in that case. Again, it’s important to keep in mind the different policies on each social platform. Here is a good reference. 

Poor Timing

It’s always a good idea before running a sweepstakes to check the calendar for critical dates that may conflict with your promotion.  Knowing that a lot of people with children travel during spring break, you may want to wait until afterwards to run a promotion aimed at that sector. The length of campaign is also important.  Too short and you run the risk of people missing the promotion. Too long and the momentum may be lost. Typically, a two-four-week campaign is ideal.

Poor Marketing

If you build it, they will come does not always apply in marketing. You can have the coolest sweepstakes concept, but if people don’t know about it, your entry numbers will be low. This article gives helpful suggestions for promotion your sweepstakes. 

No Follow Up

So, your campaign was successful, and you obtained a good number of email opt-ins. If you don’t follow up with these potential clients, it’s definitely a missed opportunity. Consider sending a thank you email after they enter. You can even include a “Surprise and Delight offer like a discount coupon or free sample.

When done correctly, there are many great benefits to running a sweepstakes. Consider hiring an agency like Sync Marketing, who can guide you through the process and help you prevent making common mistakes when running a sweepstakes. Contact us today. 

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Sweepstakes and Contest Rules

By: Sync Marketing | In: Ask Sync Marketing, Best Practices, Contests, Legal and Prize Fulfillment, Marketing, Sweepstakes

Anyone who has enters sweepstakes or contest has usually noticed a long list of rules and regulations. Some may be put off by all this legal jargon. It’s not just there to protect the companies involved in the promotion, but it is also a helpful tool for the entrant. It outlines very important features of the promotion in one neat package. Different variables of the promotion can change what needs to be outlined in your rules. Today, I have provided a list of some of the items that should be included in your sweepstakes and contest rules:

Eligibility

This section is important in sweepstakes and contest rules, because it outlines who can enter. This should include the geographical location where the promotion is open, i.e. 50 US states. It should also include the minimum age of entrants. Lastly, it should call out the fact that your employees, family members, etc. cannot enter or win.

Timing

This section should outline the exact start date and time and end date and time. Obviously, this is important because it tells entrants their deadline for entering.

How to Enter

This section outlines where and how people enter. Maybe it’s an online sweepstakes. In that case, the URL to the sweepstakes or contest home page will need to be provided. Also, you will need to tell entrants what you are collecting from them, i.e. name, address, phone number, etc. Here is a link to a sweepstakes home page that shows the entry process.

If you are running a sweepstakes where the entry method is on social media, you will need to explain the process for entry. Here’s an example of a Twitter and Instagram sweepstakes.  In addition, this section should outline the total number of entries a person can earn during the sweepstakes entry period. Depending on the complexity of the sweepstakes or contests, this section needs to be drafted with acute attention to detail from a legal standpoint. That’s why it’s important to hire an administrator who specializes in sweepstakes law to identify any additional information that needs to be included.

Winner Determination

This section should clearly outline when the winners will be selected and notified. This helps legitimize the process for the administrator when contacting the potential winners. The entrant can refer to the rules and see that the dates match. It also lets entrants know if they will have to wait days or weeks after a promotion to find out if they are a winner. Patience isn’t always a virtue when it comes to winning a prize, so this will inform your entrants when you will be conducting the drawing so that they have an exact date in mind.

Prizes

This section outlines what prizes you are awarding and their approximate retail value (ARV). This is important because any time a prize has an ARV over $600, it will need to be reported to the IRS. Winners should have fair warning before accepting any prize where they are going to be issued a 1099.

The above is a basic list of things to think about when drafting sweepstakes or contest rules. Keep in mind, there are a lot of other items that need to be included. It is extremely important to work with an agency that knows everything that is legally required to run a promotion.

Sync Marketing’s legal team is constantly researching and staying up-to-date on all the latest legal actions and changes in the field. We also attend the most respected marketing law conferences each year. This translates into invaluable legal counsel and advice for you on all your promotions and will ensure your sweepstakes and contest rules are the most iron clad. Here is a link to some of the legal services we offer at Sync Marketing. Contact us today and we will be happy to answer any questions you may have about sweepstakes and contest rules.

Sweepstakes and Contest Rules

 

 

 

 

 

 

 

 

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Why Run a Back-to-School Sweepstakes?

By: Julie Link | In: Ask Sync, Ask Sync Marketing, Best Practices, Contests, Legal and Prize Fulfillment, Prize Fulfillment, Sweepstakes, sweepstakes company, Turnkey Sweepstakes

We’re now officially into summer, and while most people bask in that fact, marketers are already looking ahead and making plans for the back-to-school season. This is a prime time of year to focus on consumer loyalty and brand awareness. This is especially true for retailers that carry merchandise geared for children and young adults. Back-to-school sweepstakes are an effective marketing tool to accomplish these goals. Today I will go into a few reasons why.

1. Deals, deals, deals.

This is a great opportunity to provide incentives to consumers to shop your brand. Back-to-school sweepstakes allow you to incorporate coupons and surprise-and-delight offers to consumers. This can be accomplished by offering these deals after they have entered for a chance to win. For example, once they receive the “thanks for entering,” message, offer them 20% off their next purchase. Not only is this optimal for reengagement but its also an invaluable way for you to obtain insights on your consumer. If you find that a high percentage of consumers redeem the coupon from the sweepstakes, then you will know that sweepstakes are resonating with consumers.

2. Consumer Loyalty

It’s a two way street. While you’re looking for consumer loyalty, so is your consumer. By running a back-to-school sweepstakes, you will in turn receive loyalty because you’re offering you consumer something in return. Once you receive their email address, the hope is that these consumers will keep coming back. If you are offering them incentives, like sweepstakes or surprise and delight offers, it’s even a better reason to return to your site. So, after you run that back-to-school sweepstakes, make sure to follow up with a pre black Friday sweepstakes and keep the momentum going! Check out some of our work samples for more inspiration on back-to-school sweepstakes.

3. Showcase your back-to-school merchandise

What better way to showcase your new back-to-school product than with a back-to-school sweepstakes. Through banner ad campaigns, social media posts and in-store POP, you will be able to promote your new products all while promoting the back-to-school sweepstakes.

When running a back-to-school sweepstakes, also keep in mind the prizing for your sweepstakes. Optimal prizing could be a daily awarding of your product or service with an overarching grand prize like cash or a trip. People love to start planning trips as soon as the reality that summer is over kicks in and cash offers consumers some hope of financial relief to offset some of the money they spend to send their kids back to school. To learn more about ideas for prizing and some of the best types to give away, click here.

As this year’s back-to-school season quickly approaches, consider running a sweepstakes. You will be sure to be top of your class with consumers.

Back-to-School Sweepstakes

 

 

 

 

 

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Questions about Running a Successful Contest

By: Sync Marketing | In: Ask Sync, Ask Sync Marketing, Best Practices, Contests, Marketing, User Generated Content

So you’ve decided to add running a sweepstakes or contest to your marketing plans this year, but you are not really sure where to start or which one will work best for you to reach your goals. Below are a few questions about running a successful contest from fellow marketers.

What are the benefits of running a contest?

We are always upfront when someone comes to us who is considering running a contest. The truth is, in most cases, you will not receive as many entries as you would if you chose to run a sweepstakes. The reason being is that with a contest, you are typically asking people to complete an extra step beyond just filling out a simple entry form. When running a contest for example, you might ask people to upload a photo or video of themselves completing a particular outlined task, or to write an essay, or even name your new product. If you want to run a buzz-worthy campaign, make sure you are reaching your true customers and collect fun user-generated content, a contest is the way to go. A contest will provide you with much more QUALITY entries. Here is a helpful article touching on the differences between sweepstakes and contests.

Are there any legal parameters to consider when running a contest?

Yes, and they change frequently, especially on social media platforms. That is why we always recommend that you consult an expert like Sync Marketing, when putting together any contest or sweepstakes. One of the most crucial elements is to make sure that you clearly outline the contest criteria and judging parameters in the official rules.  Here is an article that was written to give advice for contest entrants that might help give you additional insight.

Does one contest theme attract more entries than another?

Theme is certainly one of the factors for consumers when deciding if they want to enter a contest. Although it isn’t the only thing that might pique their interest. You will almost guarantee that you will have a good amount of entries if the contest is offering a new or fun twist or has a “cool” factor, but we find that prizing is what really drives entries. If you offer a fun experiential prize, or something that the consumer can’t obtain on their own, they will take the extra steps to enter. Another great option is build a contest around a philanthropic cause that is close to your company’s heart. Here is a case study of a contest campaign that Walmart and some of its vendors partnered together to run to a contest to support the cause to fight world hunger.

If done right, contests are a fun way to create positive interaction with your consumers and possibly create some exciting buzz for your company online and beyond. If you have any additional questions about running a successful contest contact us today at 323-596-7962 or info@syncmarketing.net.

Sync Marketing – The Sweepstakes and Contest Experts

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Why hire an administrator to create your sweepstakes Official Rules and Winner Release Forms

By: Julie Link | In: Ask Sync, Ask Sync Marketing, Best Practices, Legal and Prize Fulfillment

In this month’s Ask Sync Marketing, we answer the question, “Why should you hire an administrator to create your sweepstakes Official Rules and Winner Release Forms?”

Why can’t we just use our in-house counsel to draft our rules?

It’s not to say that they can’t, but if your in-house legal counsel does not specifically specialize in promotion law, chances are they are not up-to-date on all of the latest legal actions and changes in the field. Our advice is to keep them focused on what they do best and ask them to review the rules we create for you. Our legal team specializes in promotion law and are the top in the field. We will provide you with a comprehensive set of official rules that include the current promotion laws.

We want to run a promotion on Facebook and they offer Promotion Guidelines, isn’t this enough?

Reviewing Facebook’s latest promotion guidelines is helpful, but it’s definitely not enough to have full insight on all of the required language needed for a fully-compliant set of official rules. There are many eligibility, publicity, and state and local laws that should be considered when running a sweepstakes or contest. Hiring an agency like Sync to create the rules for you will allow you to rest assured that your official rules will meet these laws.

We found a similar promotion that ran last year, can’t we just use those rules for our sweepstakes?

Absolutely not. First, they’re not your rules to take and second you cannot be sure that these are up-to-date or were even legally compliant in the first place. Not to mention, it’s highly unlikely your promotion will be running identically to the rules you see online.

What if we don’t have time to vet out a new agency to handle our rules?

Even more reason to hire an outside agency! There is nothing more time consuming than dealing with legal ramifications when you don’t follow the law when running a promotion. There is so much that is required when running a sweepstakes or contest, which is why hiring an agency like Sync Marketing to take care of all of this for you, will take a ton off of your plate. Not only do we draft legally complaint official rules, we can also provide the following services when we handle legal:

• Legal counsel
• Abbreviated rules
• Legal disclaimers
• Winner affidavit of eligibility and release forms
• Travel companion forms
• Trademark search of campaign title
• Patent negotiations
• Partnership negotiations
• Client indemnification
• Letter of opinion
• Fraud mitigation of promotion offers
• Fraud mitigation of consumer entrants
• Bond and register campaign per state and federal guidelines
• Legal compliance review of all promotional materials and social media posts

Do I even need Official Rules?

We are often asked this by our current clients when they are wanting to run a sweepstakes with a shorter entry period or for sweepstakes or contests with a small prize. Our answer is always, yes. If there is a time frame to enter, you’ll be promoting the sweepstakes in any way, or you’re requiring your entrants to complete certain tasks to enter, then you need to have official rules. Keep in mind that Official Rules are your friend – they protect you and your consumers.

If you’re still on the fence about hiring an outside agency to handle your sweepstakes official rules and winner release forms, give us a call. We would be happy to ease any concerns and talk you through the process in more details. Contact us today. 

Official Rules and Winner Release Forms

 

 

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Questions Regarding Taxes on Sweepstakes Prizing

By: Sync Marketing | In: Ask Sync, Ask Sync Marketing, Best Practices, Sweepstakes

February is the beginning of tax season so we thought it fitting to address some questions that we’ve received from winners and clients alike regarding paying taxes on sweepstakes prizing.

How will I know if I will have to pay taxes on a prize?

Any prizing that you win that totals over $600 in value will be reported to the IRS, and you will receive a 1099 for the tax year in which you accepted the prize. During the process of accepting a sweepstakes prize, you will be asked to fill out and sign a W9 form, so this will be your first indication that you will have to pay taxes on your prize. The amount of taxes that is paid is based on the individual, so it is recommended that you speak with a tax professional to determine what your taxes will be before you accept the prize.  Here is a good article about prizing and paying taxes: http://www.marketwatch.com/story/you-win-and-now-you-owe-taxes-2014-03-12

How do I determine the ARV on a prize for tax purposes when running a sweepstakes? 

We are often asked by our clients to determine the approximate retail value (ARV) of a prize for a sweepstakes. If the prize is an item that is sold by our client, that is the manufacturer’s suggested retail price, which we use to determine the ARV. If, however the prize is a service or trip, we do our due diligence to research the average price of the trip elements to ensure that the ARV is on target.  For more information, see our previous blog article about ARVs here.

What if I accept a prize such as a trip but end up canceling at the last minute? Do I still have to pay taxes on the prize?

Ultimately this is up to the sponsor of the sweepstakes. If the trip elements were already booked and paid for by the sponsor, they will submit a 1099 to the IRS for the advertised ARV.  However, if there are elements of the trip such as food or ground transportation at your destination that wasn’t pre-paid, you could dispute the ARV since those elements were never purchased by the sponsor. Here is an article about taxes on vacation prizes.  http://contests.about.com/od/vacationsweepstakes/f/Which-Taxes-Do-You-Pay-On-Vacation-Prizes.htm

If you are a client thinking of running a sweepstakes or if you have additional tax questions, please contact us at info@syncmarketing.net.   

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