The strategy focuses on creating an enticing prize distribution plan for a lucky draw. The main goal is to enhance member satisfaction while maintaining profitability. The first approach involves calculating prizes based on tiered value. For instance, the top 5% of recipients receive significant prizes, 15% get moderate prizes, and 30% take home smaller prizes, allowing 2500 members to win something. This ensures a wide range of rewards and accounts for organizer profits, with clear communication about the tiered structure to participants.
Another strategy is offering a mix of cash and non-cash prizes. This includes determining the percentage of cash prizes while sourcing popular non-cash items, such as electronics for top winners and branded merchandise for lower tiers. This method ensures excitement and feasibility in delivering prizes, balancing costs with sponsorships.
The third strategy proposes an affiliate profit-sharing model, encouraging members to refer others for smaller incentives. This method increases engagement while saving funds for higher-tier prizes and promotional activities. Transparency is emphasized, with tools to track referrals publicly, fostering fairness and active participation in the draw.
The strategies
⛳️ Strategy 1: Calculate prizes based on tiered value
- Determine the total percentage of the fund to be used for prizes
- Allocate a high-value prize tier (e.g. 5% of recipients) with significant prizes
- Set a medium-value prize tier (e.g. 15% of recipients) with moderate prizes
- Establish a low-value prize tier (e.g. 30% of recipients) with smaller prizes
- Ensure that 2500 members from the total receive some level of prize
- Calculate individual prize values within each tier
- Factor in a portion of the fund as organiser profit
- Adjust prize values to ensure total distribution doesn't exceed prize budget
- Ensure transparency in the prize allocation process
- Communicate the tiered prize structure to draw participants
⛳️ Strategy 2: Offer a mix of cash and non-cash prizes
- Decide the percentage of prizes that will be in cash
- Determine popular non-cash prizes that appeal to the audience
- Source high-value non-cash items, like electronics or travel vouchers, for top winners
- Distribute exclusive experiences or services as mid-tier prizes
- Include branded merchandise as low-value prizes
- Create prize packages that combine different types of prizes
- Negotiate sponsorships for non-cash prize contributions to reduce costs
- Balance prize value to ensure a substantial organiser profit
- Announce prize types to generate interest and excitement
- Ensure logistical feasibility of awarding and delivering non-cash prizes
⛳️ Strategy 3: Introduce an affiliate profit-sharing model
- Establish a baseline of 40-60% of the total fund for prize distribution
- Invite members to refer others and track successful referrals
- Allocate smaller prizes or incentives for each successful referral
- Ensure transparency in the referral tracking process
- Use the saved fund from non-referring individuals for higher tier prize distribution
- Set a budget for promotional and marketing expenses
- Create a clear plan on how the remaining fund turns into profit
- Publicise affiliate benefits to encourage active participation
- Evaluate the need for digital tools to track referrals
- Ensure fairness and clarity in the affiliate prize distribution process
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
