Advisory: How to Make Legitimate Social Media-Based Contests

There are a lot of lottery scams making the rounds on the Internet these days, making it really difficult for someone to tell the difference between real and fake promotions. The folks from Cyverillance have issued an interesting advisory that can not only help users identify scams, but also aid companies in running legitimate contests.

So let’s take a quick look at the signs which reveal a scam.

First of all, lottery or sweepstakes scams request the alleged winner to pay a certain amount of money before the prize can be handed over. Then, there’s always a sense of urgency to make sure that the victim doesn’t have time to properly document the contest.

In many cases, the names and reputations of popular retailers are leveraged. However, the fraudsters tend to misspell the brand’s name.

Furthermore, when potential victims are urged to click on links, the URLs never point to the company’s legitimate domain.

On the other hand, there are some legitimate contests that get mistaken for scams because they’re not made properly.

In case you own an organization and you want to make an online promotional contest or a giveaway, there are some things you must know, especially since in most cases they are regulated by state laws.

First and foremost, there is a difference between a lottery and a sweepstake. While both involve a prize and a chance, only lotteries involve consideration (an exchange of money). Basically, unless you’re a state, you’re not allowed to make contests that involve the sales of tickets or other products.

Once you make sure that what you’re running is not a lottery, there are some other things you must establish.

For instance, you must clearly state that no purchase is needed in order to enter or win the competition. The entry procedure, the closing date and all other relevant deadlines must be detailed.

Furthermore, you must display the rules regarding the number of times a person can enter. Also, keep in mind that some countries don’t allow sweepstakes.

Google+ does not allow promotional contests, but if you’re running one on Facebook or Twitter, be sure to check out the guidelines (for Twitter and for Facebook) to make sure you're not violating terms of service.