Your skill or knowledge is what wins the contest, not chance. Know how the contest works, what the prizes are, and what all the fees are before paying anything to the company. Premiums are gifts that companies make available to all recipients who respond according to the companies' instructions, for example, a travel bag being received with a new magazine subscription. Under those circumstances, when everyone who responds to the offer receives the same gift item, without any element of chance, the offer is not a sweepstakes. Return to contents More about sweepstakes.
Consumers often ask how companies can afford such substantial prizes.
Because sweepstakes are so successful in generating attention to their offers, substantial revenues are gained for the companies that sponsor them. Thousands of corporations give out millions of dollars yearly to lucky customers. Your chances of winning will vary with the number of people who participate in a particular sweepstakes and the number of prizes offered. You should realize, of course, that the chance of winning a large prize is generally quite small. In most cases, you can enter as often as you receive sweepstakes entries, and some companies will accept write-in entries on a postcard as well.