“Good, better, best, never let it rest. ‘Til your good is better, and your better is your best.”
Usually, this quote is attributed to St. Jerome, a fourth-century priest, and, sometimes, to Tim Duncan, a five-time NBA All-Star. Either way, I still attribute it to third grade, when our class recited it each morning. More recently, I’ve been thinking about how it applies to entrepreneurship and building my latest business, Contest Champ.
In addition to managing the Beyond Business Institute™, I began a new endeavor last fall, designing Contest Champ™ to be the easiest way to win online sweepstakes. Each week, we email a curated collection of sweepstakes grouped by category, along with everything needed to enter them. Already, we’ve helped our members win some awesome prizes, like a KitchenAid Stand Mixer, Apple Watch, and a constellation’s worth of free Starbucks Stars. But while things are good so far, I think we can be better, and I know it’s not yet our best.
That’s why, starting in June, we’ll be transitioning to paid membership-only model. Before we do, here’s an inside look at the changes we’re making and the strategy behind building a winning business:
1. Change the Customer
To find readers, we’ve been running our own contests and advertising them through contest sites and Facebook ads. While effective (over 4,000 members so far!), this approach is also cumbersome and expensive. Since we can only run one contest at a time, each campaign is limited to a single demographic and a single prize, limiting our reach. And, of course, it’s expensive to offer so many awesome prizes!
Sometimes, it can be more effective to change your customer, not the product. Our current readers are mostly avid “sweepers” already, but we also want to expand access to new sweepers. To do this, soon we’ll start piggybacking on other companies’ larger prizes, by running Facebook ads to direct people to multiple sweepstakes through signing up for Contest Champ. This way, we can promote several prizes simultaneously, each targeted to a different demographic. And since we’re not providing the prizes ourselves, we can apply the cost savings to additional ads and greater growth.
Pin this image to read later!
2. Provide More Value
Right now, we’re only sending two weekly emails: one free category-specific digest; and a paid Secret Newsletter, featuring larger bonus contests regardless of category. Now that the pandemic is waning (fingers crossed), we’ll be launching a third new category: Travel! Many of the best contests available right now are for all-expenses-paid trips to large annual events (like the U.S. Open at Torrey Pines or the ACM Awards in Nashville). Several hundred people have already pre-registered (you can sign up here). The new paid membership model will also allow us to publish more often by sending one weekly email per category – that’s 3x the contests!
Together, these improvements will give every member more value for the same price. With any new business, it’s always a good idea to start with small, simple sample tests to figure out what works (and what doesn’t). Then, once you identify what people want, do more of what works well. It might sound obvious, but it isn’t: many companies mistakenly increase the price and offer the same value, instead of holding the price steady and increasing the value.
Remember Moviepass? In 2017, the subscription service briefly offered users access to one movie per day, in any theatre, for $9.95 per month, and quickly amassed 2 million subscribers. However, only a few months later, they began steadily increasing the price and limiting the selection of films. By 2020, the company went bankrupt. Their collapse is a striking reminder to always deliver more value, not less. To do this, we’re asking our readers to become paying members, and then giving them early access to new categories and triple the contests.
3. Ask for Payment
It’s always awkward to ask people to pay for things: buying concert tickets, reimbursing travel expenses, splitting the check. But once you identify the right customer and consistently deliver more value, don’t hesitate to ask people for payment boldly. Remember, people are used to being asked to pay for services; we’re just unfamiliar being the one to ask. When you create something of value, people expect to pay for it!
“When you create something of value, people expect to pay for it.”
Recently, several large email newsletters have also transitioned to a paid membership. In April 2021, The New Paper, a concise daily news briefing, switched from a free, ad-supported model to a $10 monthly membership. And during the pandemic, Scott’s Cheap Flights, which sends discounted flight alert emails, became a $49/year members-only subscription. The strength and size of their readership made both of these switches successful, and I’m confident ours will too.
By adding new readers, providing more value to current subscribers, and boldly asking for payment, Contest Champ is already good and getting better. And until every member (including you!) feels like they’re getting a smile in their inbox, keep reading and entering! Our best is still ahead.
Check out Contest Champ and save 25% off an annual membership →