Business Idea

Start A Contest Marketing Business

About

Starting a contest marketing business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell contest marketing, or selling contest marketing online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$370B
starting costs
$16.7K
gross margin
40%
avg product price
$5
time to build
240 months
work from home?
Yes

About

Starting a contest marketing business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell contest marketing, or selling contest marketing online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$370B
starting costs
$16.7K
gross margin
40%

 

avg product price
$5
time to build
240 months
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $150 $250
Website Costs $223 $7,215
Business Formation Fees $600 $4,700
Software Expenses $162 $2,595
Advertising & Marketing Costs $0 $3,300
Total Startup Costs $1,135 $25,060

Successful Businesses

Business URL Rank
Venture Harbour ventureharbour.com #30,216
Second Street secondstreet.com #68,197
Wyng wyng.com #100,952
Ygrene ygrene.com #117,954
Quikly: Urgency Marketing Platform quikly.com #168,638
Convert With Content convertwithcontent.com #224,064
iCrowdMarketing icrowdmarketing.com #235,349
Antavo antavo.com #260,073
PFL pfl.com #279,675
TabSite tabsite.com #335,930
MarCom Awards – International Competition for Marketing and Communication Professionals marcomawards.com #364,760

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a contest marketing business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A contest marketing business gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a contest marketing business. This could be the start of an incredible business opportunity!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your contest marketing business are typically around 40%, which can make it more challenging to incur new expenses and maintain profitability.
Stressful work This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a contest marketing business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting a contest marketing business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.