Category Archives: Trade promotion permits

Use Random Numbers to Your Advantage

An understanding of random numbers can give you unexpected advantages, including the ability to win more and more often.

Over the past month, we have been working on two random competition draw systems- used to determine competition winners. I had some vague idea that random numbers could be useful in other ways, and indeed, they can.

Did you know you can use Random Numbers to Win More and More Often?

Read more here: https://www.linkedin.com/pulse/use-random-numbers-your-advantage-connor-james 

Competition Permits Experts, Special Offer

During the months of Jan and Feb 2016, we will be offering Free Electronic Draws for new competitions which are sent to us (for which we apply for permits).

There is a great degree of variation in the cost of setting up an electronic draw. Some providers are asking for as much as $249 per draw!

Our Service comes with the following Benefits:

  • The work we do is Fully Insured, don’t trust an uninsured provider;
  • We offer a Fixed fee, that includes drafting terms and conducting a draw;
  • We will refund our fee in Full if we don’t obtain permits;
  • We offer credit terms to approved customers and accept purchase orders; and
  • You can Call Us as many times as we like for no- cost;
  • We have a second-to-none understanding of competitions and the need for a competition permit; and
  • We are Trusted by Australia’s Leading Brands and have Consistently positive Feedback

All of our draws are conducted using an approved electronic draw system and are overseen by a Solicitor! Any draw which has a prize pool of up to $20k is eligible, as we are authorised to oversee these.

Our computerised system has been reviewed by the lottery departments and is approved.

To take advantage of this offer, simply submit a quote request! There will be no fee for the electronic draw, simply email us the list of entries and get the winner sent back to you.

Our fee, to draft terms and conditions and apply for permits starts from $220 and will ensure that your competition is compliant with the relevant trade promotion permits. We work with a large range of clients from Kia, Hilton Hotels, National Geographic and more.

If you would like more info on the requirements relating to competitions please get in touch. Competitions are able to be conducted by a business seeking to promote their brand or service. Entry into such a competition must be free (although entry can be conditional on purchasing a product or service). Please note that we cannot help if you planning to charge a fee to enter your competition.

Permitz Group can be relied upon to draft compliant terms and conditions and apply for all required competition permits.

We also offer a FREE initial consultation and will confirm over the phone if permits are required for your competition.

For examples of promotions in which we have been responsible for terms/ permits, see the videos below.

A unique way to award prizes..

Wouldn’t mind this prize myself..

 

We look forward to working with you in 2016!

Competitions that Stand Out

Be unique

It’s peak time again for marketing in Australia, as brands seek to stand out in the Summer. Consumer competitions are one way to do this. I am involved in hundreds of competitions every year and see some great examples.

Competitions are effective for many types of businesses. Just last week, we worked on competitions conducted by charities, clothing brands and hotels. We also had the pleasure of working on a competition connected to Sir Richard Branson.

Here are four tips for running successful competitions:

1. Many and often- Competitions can give consumers a sense of excitement. Running competitions regularly associates your band with that feeling. For example, running regular competitions on Facebook will encourage consumers to keep checking back in, to see what they can win and to see if they have won. There is a specific type of licence which can be useful for this strategy, called a blanket permit, allowing a business to run as many competitions as they like.

2. Keep entry simple- I am often involved in competitions from start to finish, and as a result, see the number of entries received. There is a direct correlation between the ease of entry and the number of entries received. Whilst this may sound obvious, too many competitions ask you to enter online and then share your entry on Facebook and then purchase a product and then share again. Resist the temptation to overexploit the potential of a competition.

3. Keep it interesting- Prizes and the method of entry need to be designed for your intended audience. Whoever your audience, there will always be a positive response to simple gamification type tricks, like awarding bonus entries (so long as the bonus entries are not too hard to gain.

4. Keep it proportional- Larger cash prizes do not necessarily result in a greater number of entries. Essentially, a competition is a trade between the chance to win (given by you to the consumer) and the disclosure of personal information or the purchase of a product by the consumer. The trade should be a fair trade. Just as important as a prize pool is an entrant’s perception of their chance of winning. There won’t be much of a difference in terms of how many entries you receive if you give away $10k vs $20k. If you are planning to run a massive competition, consider Prize Insurance, which gives entrants you draw the chance to win an amount such as $100k or $1 Million- the cost of such promotions is much lower than you might think.

For competition ideas, info on the requirements or competition permits, send me an email to info @permitzgroup.com or call me on 0406 509 198

Permitz Group joins ADMA

Permitz are committed to the improved understanding of trade promotion laws across Australian businesses. The company has written a number of guidelines aimed at explaining the complex maze of trade promotion laws in simple english.

Permitz has recognised the important role that industry associations play in promoting the industry and assisting members. Permitz identified ADMA as being a key player in both representing the industry and improving general awareness of regulatory obligations in relation to marketing, privacy, spam act compliance, among others.

As Australia’s largest marketing and advertising association, ADMA protects, supports and champions excellence in data-driven marketing and advertising in Australia, and beyond.

By joining ADMA, Permitz has clearly signaled its intention to continue to focus efforts on supporting the industry and those who work in advertising or marketing roles.

ADMA LogoLearn more about ADMA here.

For information about the need for trade promotion lottery permits, competition terms and conditions, Facebook competition requirements, please send us a request here.

 

Four Steps to Successfully Integrate Competitions into Your Marketing Strategy

Successful competitions are conducted within a wider marketing strategy. Consistency is important to ensure that the objectives of a competition align to wider marketing strategy. To achieve consistency, the context and objectives of a competition need to be considered throughout, from planning to execution.

From experience with many promotions, Permitz has identified a number of key considerations in the design and execution of competitions that will assist in the success of a competition, within the wider context of a marketing strategy:

Step One: Consider the objective

There are a range of reasons to run a competition. For example, by requiring that entrants purchase a product or complete a transaction of a minimum value, a competition can assist in having a direct impact on revenue. If the objective of a company is to increase the average sale value, a competition may be successfully used to

Step Two: Consider timing

Competitions should be planned and aligned to other marketing events, important dates, and other factors such as weather. A chance to win a holiday to a hot tropical paradise is much more enticing when its not already hot and humid at home!

Step Three: Consider the audience

Any consumer competition needs to carefully consider the likes and behaviour of the target audience. It is much more valuable to have a database of 1000 individuals who are likely to buy products or services than a database of 100,000 individuals who are unlikely to ever complete a purchase.

Prizes and methods of entry need to be individually designed to be aligned to the wants and behaviour of the target audience.

Equally important is the need for the proposed audience to know about a promotion. Advertising (in the right medium) of a competition is critical to ensure its success.

Step Four: Consider the overall message

Companies that run a number of smaller competitions are typically much more successful in achieving their objectives than companies than run one (or less) competitions a year. The frequency of competitions ties back to a company’s overall marketing strategy. Consumers respond well to ongoing incentives and are more likely to participate. There is much less of a connection between the prize pool value and number of entries than many assume. For the average consumer the idea of winning $1,000 is just as enticing as the idea of winning $100,000. It is likely that the higher prize pools decrease entrants’ perception of their chance of winning.

From 21 June you will no longer need a competition permit in Victoria

As foreshadowed in a previous post, Victoria are removing the need for competition permits. Previously, if your prize pool was over $5,000 you would need to obtain a permit from NSW, ACT, VIC and SA. From 21 June, you will no longer need a permit in Victoria to run a chance-based competition.

From 21 June 2015, businesses, charities and community organisations will no longer need to apply to the Victorian Commission for Gambling and Liquor Regulation (VCGLR) for a permit to conduct a trade promotion lottery.

Impact on the cost of running a competition

The cost of a Victorian trade promotion lottery permit is $344.20. As a result of the change the cost of obtaining permits for any competition with a prize pool of over $5,000 in all States will decrease by $344.20.

Victoria are not the most expensive nor the slowest State in issuing competition permits. The cost saving is a definite positive but there won’t be a benefit in terms of how long it takes to get all lottery permits back from the remaining States.

A ‘free for all?’

Despite the fact that you will no longer need a lottery permit in Victoria for your chance-based competition, you will still need to comply with the guidelines in place in Victoria for businesses running competitions.

The VCGLR website will be updated on 20 June with a list of those conditions.

The competition terms and conditions that we draft on your behalf will comply with those conditions. Obviously, these conditions will include requirements to: give each entry an equal chance of winning, award the prizes you say you will award

Implications in other States

Other States may, but at this stage have not, follow the lead from the VCGLR. The Victorian regulator were highly regarded by trade promotion agencies, reviewing competitions against the regulations in a reasonable manner and for a reasonable fee (as much as a tenth that charged in other States).

In our opinion the best option would be for there to be a national system in place, in recognition of the fact that there is too much complexity in the different State and Territory laws and this simply ties business up in further red tape.

Permitz Group will continue to be able to offer first rate assistance in all areas of competitions. We have assisted a large range of multinational companies run competitions in Australia, New Zealand, the United States, and Europe. Our primary aim is to offer a single solution to the problem of complex and contradictory State based rules surrounding competitions and trade promotions

Click here for a copy of the letter from the Victorian Regulator: Competition permits in Victoria

The top 5 mistakes people make in relation to the need for competition permits

Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.

Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.

There are some common misconceptions about the need for competition permits (Also know as lottery permits). Here are a list of the top 5 mistakes people make in relation to the need for competition permits:

1. I am running a mix skill and chance-based competition therefore I do not need permits— Wrong! You may need permits if your competition involves any element of chance in the determination of winners.

2. I am located in QLD but running a national chance-based competition therefore I do not need permits— Wrong!  If you have a national competition you will need permits from at least NSW and the ACT.

3. Everyone else runs competitions without permits, so there is no chance I will get in trouble – Wrong!  It is an offense to run a competition without competition permits where required. There are serious, and we mean serious, potential penalties.

4. Permits are required from QLD– Wrong! You will need to comply with the QLD guidelines but do not need to apply for a permit in QLD.

5. When I am waiting for permits I can just put ‘Permits pending’ or TBC on advertising material– Wrong! You will need to display the actual permit numbers, as well as various other information, on your advertising.

For more information about the need for competition or lottery permits, send us an email to info@permitzgroup.com.

Generating leads from competitions

Many of us spend a lot of time on website development and customisation but don’t do a great deal to increase website conversions and generate new leads.

A competition (also known as a trade promotion or lottery) can be an effective way of increasing leads generated from your website. Form conversion rates before and during the competition period give you a clear method of reviewing the effectiveness of your competition.

The key to an effective competition is to ensure that it is as simple as possible to enter and to ensure that the right people know about your competition. Asking for excessive personal information such as date of birth will only serve to drive potential entrants and leads away.

A chance-based competition, which may require lottery or trade promotion permits, requires minimal effort from competition entrants. Winners can be determined by a competition draw.

For a complete and obligation free quote, contact the quote form on our website or send us an email to info@permitzgroup.com

Three ideas for your next competition

Various competitions

Looking for a fresh competition that will stir up your customers, infuriate your competitors and increase your sales?

Here are three out-of-the-box ideas for your next promotion.

1. Ongoing rewards and a chance to win Big! The best way to run a competition is to keep it going and to keep giving. Many of the most successful competitions we have seen give away small prizes such as DVDs, event tickets, and cash on a weekly or monthly basis. A blanket permit allows you to run a number of competitions with smaller prize pools over 12 months. On key dates, to coincide with product launches, or events, you can then obtain individual permits to give away larger prizes.

2. Instant win! An instant win competition gives entrants an immediate sense of winning, can encourage multiple purchases and allows you to award prizes to multiple winners.

Instant win promotions need to reward continual participation by your entrants. Ensure that you give a large number of prizes and a smaller number of large prizes. Your minor prizes could be discounts or free products or services that you offer.

3. A chance at a Million Dollars! A million dollar prize pool does not need to cost you a million dollars. Prize insurance allows you to offer prizes in the order of $100,000, $500,000 or one million dollars for a fraction of the total prize value. Such a competition gives a winner the chance to win a large prize. Typically, you would draw one entrant who then attends an event where they are required to pick an envelope out of a possible hundred. One envelope may contain a million dollar cheque whilst the others contain a consolation prize. No matter which envelop your winner picks, they walk away happy.

Permitz have been involved in a very large number of innovative promotions, giving away millions, giving away trips to virtually every continent. Permitz can look after terms and conditions and competition permits for your next competition.

Some commonly Asked questions

1. When do I need competition permits?

Competition permits are generally required if the winners of your competition are determined by chance. Typically this means the winners are either drawn or win instantly by, for example, scratching a game card.

Competition permits are not required if your winners are determined solely by skill and by qualified judges. Examples of skill-based competitions include those which typically ask a question to be answered in 25 words or less.

2. What if the draw/ my office is in a particular state, does this mean I only need permits from that state?

The location of the draw and/ or your office is irrelevant. However, if the competition is only open to residents of a particular state or it is a requirement that entrants come to a location in a particular state, you may only need competition permits from that state.

3. Do I need competition terms and conditions for a simple or a small competition?

Yes. Competition terms need to set out a number of important things. These include who can enter, when someone needs to enter, what restrictions are in place and what the prizes are. If you fail to have competition terms and conditions you will leave a number of questions unanswered. This increases the risk of a complaint or dispute later on. It is better to have clear terms and conditions which set out everything about the competition and avoid ambiguity.

4. What detail do I need about the competition prizes?

You should include as much detail as you can about the competition prizes in the competition terms and conditions.

Some state regulators specify particular information which must be included. For example, in VIC, you need to ensure you include the name or type (i.e. star rating and location) of any hotel included in an accommodation prize.

5. How long does it take to obtain competition permits?

Each state takes a different amount of time to issue a competition permit. We suggest you aim for three weeks from the day you apply to the day you need permits back. You will need to include the permit numbers in any advertising of the competition.