– Where does the money for Publishers Clearing House giveaways come from?

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I remember seeing old commercials on TV where a van would pull up to somebody’s house…usually somebody old…and Ed McMahon would pop out with a bunch of balloons and an oversized check for the latest “lucky winner”.

Recently I recalled these commercials and then went on to see that they still do this stuff, albeit in online form.

“WIN MONEY FOR LIFE!” with a free entry…yeah, okay, I might consider entering if I wasn’t already set for life thanks to a chance encounter with a Nigerian Prince recently.

But really, what is the story with this thing? Scam? Something else?

In: Other

The magazine company pays for the contest prize out of the magazine subscriptions sold by the mailing.

Publishers Clearing House is a company that started selling magazine subscriptions, now also sells other merchandise. In order to increase magazine sales, that started a sweepstake. Those who bought subscriptions would have a chance to win money. This money came from selling magazine subscriptions.

There has been some controversy with this sweepstakes, such as accusations of promoting false odds.

> I might consider entering if I wasn’t already set for life thanks to a chance encounter with a Nigerian Prince recently.

You are welcome, sir

god blesses ,

Nigerian Prince

The prize money was a marketing expense — just like other businesses might spend on Super Bowl ads, or distribute lots of promo codes, or any other marketing spend. Get lots of press/publicity surrounding a huge sweepstakes and get people to use your service to subscribe to magazines — that was their business was selling magazine subscriptions to virtually all major magazines.