Starting a sweepstakes business can be an exciting venture; but it can also be extremely overwhelming. There are many things you will need to consider before opening shop. One of the most important decisions you will make is deciding whether you want to lease systems from a sweepstakes gaming company and split the cost 50/50. Many business owners consider this route when they don’t want to invest in purchasing their own systems. However, this deal might not be very beneficial to your company. Here’s a brief overview on leasing systems and splitting the spoils 50/50.
You pay more in the long run. Sweepstakes software companies that offer the 50/50 deal are in fact using a common trick in the industry. On the surface it looks like a good deal. The business owner gets access to sweepstakes machines without having to pay a dime. However, they use this trick to get their systems into your sweepstakes parlor and then charge a monthly fee. The monthly fee of 40 to 50 percent ends up costing you more in the long run than if you would have purchased your own phone card sweepstakes machine.
You get poor-quality equipment. Although you might end up paying more money in the long run to lease machines and split everything 50/50, some business owners might still choose that option if they can’t afford to purchase the machines up front. However, another issue comes into the picture in this scenario: you end up with beat-up, used equipment.
Before you invest in a sweepstakes business, make sure to contact a business consulting firm that specializes in sweepstakes parlors.