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Alright, quick background check. I once worked as a social network manager for a few smaller companies in my local area. Simple stuff really. Companies that sold products or wanted their brand name pushed out locally more. So I learned how to run a few decent Twitter contests. Here are my suggestions for those who want to utilize that particular Social Network for marketing:

1. Keep it cheap. Your company may or may not have a large expense budget, so try to keep it to a small budgent. Something that seems like a premium but actually costs very little to the company. Example: a high-scale spa resort running a contest for free 1-hour massages. Little to no merchandise cost.

2. Give away a lot. Five $100 prizes goes a lot further than one $500 prize. More people are willing to go for smaller prizes if there odds of being selected are improved.

3. (this one is a bit more technical.) Make the "sign-up" process very simple. Basically, tell them to follow you, Re-tweet and @mention your company with the link to the contest specifics. You are going to pick from the list of people in your @mention box. This keeps the sign-up process EXTREMELY simple so more people are willing to spend a quick 30 seconds to broadcast your message. THIS IS A NECESSITY! Making it more complex might help with potential sales leads, but you are also going to get a LOT less brand recognition and backlinks.

That's it! Now strategize away. Good luck with your marketing strategies.
 
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Great suggestions on how to run a successful twitter contest. What do you do about the rules and regs.? I always think that a contest must have some rules posted somewhere. Have you had any complaints about it being oversimplified?
 
No complaints about it being over-simplified.

For the rules & regs. portion, I made sure that everything I mentioned was acceptable for Twitter and Facebook guidelines. You definitely want to have the contest details (like the prizes) and any legal requirements posted on the page being liked to, but for the most part, the simpler the strategy, the more desirable the contest is for both your potential customers and the Social Networks being used.

The only TRUE concerns are your marketing budget (how much you can give-away) and the legal worries (the way you word your contest.)
 
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