Lets face it, everyone like contests. The one you find on blogs are usually free and can get you free stuff. From a website owner point of view they are also very rewarding. I have not the experience yet but the right contest on the right website will bring traffic, links, interest, more opportunity to make contest. Loop that and you get growing website with more and more visitors.
Jeremy Schoemaker at Shoemoney wrote a nice post about why we should consider contest more often as a marketing tool: http://www.shoemoney.com/2008/10/08/blog-contests-a-to-z/












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