Starting making sweepstakes online is first and foremost a legal issue. Some countries have very strict laws governing over any kind of gambling, and sweepstakes are considered gambling in some areas of this world. However, if you manage to obtain a gambling license you can easily think about starting making sweepstakes online.
To obtain the license, you will need to probably start a firm that has this as the main activity. What this means is that, in most countries, you will need to pay twice as many taxes as other types of firms. This might not be a problem because the potential to make a lot of money is certainly there. All you need to do is make sure that your site is well marketed and that you are following the law. People tend to have a habit of chucking out 5 dollars for the chance to win a million, or any other large amount starting from 10.000 dollars. You have to make sure that the first couple of times you set yourself a decent goal as to when the sweepstakes will be awarded. For example, if you want to award 10.000 dollars to one lucky winner and you are selling 5 dollars tickets, you will need at least 2000 tickets to cover the prize money alone. If you want a profit, you need to sell at least 3000 tickets. So, make sure that you allow yourself enough time to sell that number of tickets.
Of course, you will need a proper site, which is an investment in its’ own. This can either be purchased ready made, or you can have one customized to your specific preferences. The first option is probably the better one at the beginning of this type of activity because it is that bit cheaper.
To obtain the license, you will need to probably start a firm that has this as the main activity. What this means is that, in most countries, you will need to pay twice as many taxes as other types of firms. This might not be a problem because the potential to make a lot of money is certainly there. All you need to do is make sure that your site is well marketed and that you are following the law. People tend to have a habit of chucking out 5 dollars for the chance to win a million, or any other large amount starting from 10.000 dollars. You have to make sure that the first couple of times you set yourself a decent goal as to when the sweepstakes will be awarded. For example, if you want to award 10.000 dollars to one lucky winner and you are selling 5 dollars tickets, you will need at least 2000 tickets to cover the prize money alone. If you want a profit, you need to sell at least 3000 tickets. So, make sure that you allow yourself enough time to sell that number of tickets.
Of course, you will need a proper site, which is an investment in its’ own. This can either be purchased ready made, or you can have one customized to your specific preferences. The first option is probably the better one at the beginning of this type of activity because it is that bit cheaper.
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