How to organize a prize draw?

Anton Sadykov

Anton Sadykov

CEO Lioncom

We have all seen and even participated in various prize draws conducted by a chain of stores or individual brands. Someone can tell about a big win or getting a decent discount on goods. In any case, it’s always nice to get a free prize especially when you just need to fill out the form and wait until the results are announced. But what are these raffles for and what is needed for their organization? Event agency Lioncom knows all the secrets of organizing and conducting prize draws and is happy to share them with you.

What is the purpose of a prize draw?

Draws are useful and necessary. Among the most popular reasons for organizing are:

  • increasing brand awareness;
  • motivating for spontaneous purchases;
  • increasing loyalty of regular and new customers;
  • adding new customers to the list;
  • increasing demand for certain products.

But the prize draw is not as easy as it might seem at first glance. In order for the prize draw to be successful, it is important to choose the right format, take into account all the details, correctly arrange it, and host it without any extra hitches.

How to formalize a prize draw?

Prize draws always need to be formalized. There are a couple of nuances in this matter.

1. If the price of the gift is higher than the fourth part of the minimum wage, it is necessary to pay personal income tax, which is 18%, and the military fee which is 1.5%.

2. If the price of a gift is below the fourth part of the minimum wage, then the gift is awarded without tax deduction.

3. In order to make the draw a joyful event for the guests and maximize their loyalty, these taxes must be paid by the party that organizes the draw. We, as an agency that takes on the full cycle of the event, do this for our clients on our own. In order to do this, after the draw, our coordinating officer takes the TIN from the winner and signs the gift transfer certificate. Thus, our client does not need to take any accounting worries.

After registration, it’s time to learn the mechanics of the future prize draw.

Mechanics of organizing a prize draw

There are online and offline prize draws. Let’s consider for what purposes each of them is suitable and how to organize everything correctly.

Offline Prize Draw

This type of draw is relevant when you need to attract traffic to the store and create customer demand here and now or when there exists a favorable price offer or a unique assortment of goods that needs to be advertised and attract people in a specific period of time.

The draw system is very simple. The participant makes a purchase for the declared amount, fills out the form, and throws it into the lottery drum. After registration is completed, the presenter calls one of those present and asks to draw out the winner’s name.

Next, it is just the time to call the lucky one to the scene, congratulate, and take a memory photo with him. If the prize draw is held not only among the guests present, the host calls the specified phone and congratulates the winner on the speakerphone.

Online Prize Draw 

The format of the online draw is suitable for long-term promotions with the possibility of buying both in the store and online. Such a draw is often accompanied by an active advertising campaign, takes place on the network, and has a large and valuable prize at stake.

Applications for participation in such a draw are created through a special page on the site and make it easy to check the data, eliminating errors when filling out manually. This method of obtaining information makes it possible to replenish the customer base with new warm contacts.

The Prize Ceremony

The ceremony can take place offline and online.

Offline ceremony

The offline ceremony is useful if the goal is to create an information line for participants to come to the store/mall/representative office, shoot a reporting video, thank everyone, create an entertainment program and additionally motivate for purchases.

For the offline ceremony, we recommend using the service, transferring the entire database of participants there. Thus, you will have the opportunity in front of everyone to generate a winner number. A technical check is not required here, but the host always asks what the participants bought, whether they expected to win, and other questions that encourage everyone and prove the fairness of the draw.

Online ceremony

The online ceremony takes place in the form of a live broadcast. It can look like a screencast from the screen, or on a larger scale: in the central office of our client, with a host, a commission, a notary and a stream to social networks. It all depends on the scale of the action and the number of participants.

Each draw is unique and special. Therefore, it is very important to take into account even the smallest details and make sure that everything is correctly and accurately prepared.

In order for the preparation and the whole process to go without unnecessary hitches, you can contact Lioncom Event Agency. We know how to organize a prize draw from the initial discussion of an idea and concept to the solemn announcement of the winner. We have given away hundreds of units of various equipment, cars, and more than a million hryvnias. Each prize draw that we conduct always meets all the strict rules and serves as an indispensable tool to increase the recognition of the brand and its products.