If this is your first time sponsoring a sweepstakes, make sure you check with local laws about possible restrictions. Local marketing and promotion agencies can help you with this information. Arent Fox Contests and Sweepstakes Law Internet Law Site . The way you handle your promotion will show people whether or not your promotion is legitimate. Legitimacy is the key.
Many sites hold a sweepstakes just for the sole purpose of gathering names.
For example, one site chose to give away a custom designed T-shirt every month as the grand prize. Create a nice graphic, or coupon, or order form with the discount posted right on it. Don't hide it or disguise it as a sweepstakes. If you hold a sweepstakes just for the sole purpose of gathering names, you are quickly going make a lot of enemies on the Web. You might as well send bulk e-mail, because you'll get basically the same reaction.