Everything you Need to Know Before Starting Your Online Raffle Business

Raffle is basically a gambling competition where numbered tickets are obtained by people & every ticket holds the probability of winning. Winners are randomly drawn through a container that possesses every number’s copy. Tickets drawn get checked against the prize collection having attached numbers & the ticket holder wins the prize.

Raffles have been around us for ages & prove to be one of the most effective and popular ways of raising money for charity purposes, sports clubs, good causes, community projects or for business/event promotion as they are known for generating great attention. Raffles have been revolutionized from traditional to an online form which has undoubtedly boosted the growth of the industry in a significant way. Before starting your online raffle business, you must be considerate & precise about how, when & where to start your raffle business in an optimized manner. You can put your business goals in line of success by following a well-defined and thoroughly researched business strategy.

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Benefits of an Online Raffle

Bring your raffle campaign to an ultra-modern digital age & putting your cause via mobile screens, tablets & desktops across the globe can bring endless benefits for your business. There are a myriad of perks involved in opting for an online raffle including:-

• Seamless Tracking Abilities
• Ease of Playing
• Real-Time Analytics & Reports
• Digital Advertising & Promotion Opportunities
• Raising Funds for your Cause Securely & Easily

Since the raffle is a prize-led campaign thus it surely works effectively by offering your supporters an opportunity of giving back to the community along with getting rewarded for the same. The generosity of rewarding proves to be a brilliant way of keeping supporters engaged, interested, enthusiastic and excited.

And don’t forget, the message of the cause behind your online raffle is the core of all raffle campaigns.

Raffle Industry Insights & Statistics

• Mobile devices are found to be used more frequently for online raffles
• Commonly used ticket price on platforms is £1
• Facebook referral rate on average is 32%
• Average phone opt-in rate: 10%
• Average email opt-in rate: 44%
• Traffic from mobile: 41.52% of total traffic on a platform

Lottery Vs. Raffle

Lotteries have always proved to be one of the most popular ways of generating profits while trying luck in different lottery games. However, raffles are not as popular as the lottery in terms of awareness. In basic definition, lottery tickets are schemes in which prize distribution is done on the basis of a draw. The ticket carrying number that matches during the draw, wins the prize. On the other hand, raffles involve drawing where tickets get sold out for winning a large or mega prize.

Primary differences b/w raffle & lottery:-

• Meaning

Way to raise money by selling out tickets possessing printed numbers. Tickets

are randomly drawn & the holder of the ticket with the right combination is declared as the winner of the prize. Although it sounds similar to a lottery ticket there exist multiple differences between lottery & raffle. Raffle can be conjoined with a lottery or can also be stand-alone which means when someone is purchasing a lottery ticket that has a raffle associated, an additional number gets assigned to every line which gets used in a raffle drawing.

• Numbers Choice

Numbers can be chosen by buyers for a lottery ticket while a raffle involves pre-printed sequences of numbers that are also known as raffle code.

• Pre-defined Prize Date

Raffle involves giving away prizes on some predefined dates while the lottery involves rolling over limitless times. Raffle comes with a specific date & winners get declared on that particular date. It comes with a limited count of tickets to be sold and as the sale gets closed & the winner is announced, the raffle gets ended. While lotteries do not come with a limit as it comes with a concept that the more the count of users, the more will be a jackpot or prize pool. There are limited counts of raffle codes for sale thus the prize money cannot be increased and is fixed. While in the lottery, as the number of ticket sales gets increased, the amount of prize money keeps on increasing.

• Jackpot Winner

A jackpot winner is always associated with a raffle draw which means that raffle comes with a guarantee that the draw will be made only among those codes or numbers matching the sold raffle tickets. On the other hand, the lottery doesn’t compulsorily involve a jackpot winner every time. Draw machine in the lottery possesses all numbers lying in the complete guess range thus there is no assured guarantee that the code or number selected by buyers will get reflected on the machine.

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How to Start an Online Raffle Business in 2021?

Local non-profits, as well as community groups, raise funds through raffles while they win the support of the public for their project goals. The process is as follow:-

• Sponsoring businesses provide donate prizes to the groups which sell tickets & then winning matches are drawn by these groups. This process used to be held offline but nowadays online raffle has gained more popularity and one of the main reasons behind this transition from offline to online is the COVID-19 pandemic which has made offline raffle nearly impossible at this time. Community groups as well as charities needs for funding have even increased due to the economic crisis resulting due to pandemic.
• Raffle’s magic comprises a combination of aspiration & altruism which means that players purchase tickets for supporting a good cause and at the same time they are genuinely enthusiastic about winning exciting prizes.
• People get attracted to an online raffle when the offering prizes are worth more than the ticket price. This can be achieved by asking supporting businesses of your organization to donate prizes & help in selling tickets online.
• As prizes get lined up, you can start selling the tickets. Before the COVID-19 pandemic, sales of raffle tickets were based on cash but online raffle software is based on online payment processing thus you must opt for a reliable online payment processing solution that can help in the convenient and secure collection of money.
• You can also start with advertising & promotion campaigns through email or social media for motivating your supporters to purchase tickets.
• Offline raffles generally used to fly under the radar when we talk in terms of taxes and regulations since they are local and small. But online raffles have greater chances of getting noticed by the authorities so it will be best to stay prepared. There are few locations such as Utah, Alabama & Hawaii where raffles are completely illegal. A nonprofits association is there in every state for counselling on relevant state laws.
• Properly planned marketing and promotion need to be carried out to reach the target audiences and engage them.

Locations where Online Raffle is Popular

• United Kingdom
• New Zealand
• Australia
• Minnesota
• Rhode Island

etc.

Raffle Prizes

• You can ask supporting businesses of your organization, corporate partners as well as the public to contribute and donate for prizes.
• Audiences can be lured with high-quality images or videos of the prizes so that maximum selling of tickets can be ensured
• Create engaging content and promote it on social media to get more donated prizes
• Support your raffle campaign with enticing and informative written copies stating the good causes
• More the number and amount of winning prizes, more will be the ticket sale for your online raffle software.

Crisp Online Raffle Business Plan

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