Once the shiny launch is over, you're left with the actual job: running the thing every day without losing your mind or your money. I don't mean to brag, but I got a C in AS level Accounting - so if I can build the operational side of this, so can you.
Creating and managing competitions
Most competition sites follow a similar rhythm:
- You create a competition with prize details, ticket price, cap, and closing date.
- You decide whether to include instant wins and, if so, which ticket numbers trigger them or whether to randomise. Instant wins add a real gamification layer - "find a 69 to win £69" type mechanics - that encourages higher basket sizes and repeat entries.
- You upload images and a clear description. AI tools like ChatGPT or Claude are genuinely useful for drafting descriptions or AI images, these from a basic product outline - just sense-check before publishing. Read more into AI Prompting in the blog post - AI Prompting for Prize Competition Listings
Early on, it's usually better to:
- Keep ticket caps realistic so competitions actually fill or at least look busy. An 80% full competition looks exciting. A 12% full one looks abandoned.
- Work backwards from your prize cost and ad spend. Assume you may only sell 50–70% of tickets, and still aim for a sensible margin after gateway, platform, and prize costs.
- Have a plan for what happens if a competition doesn't fill - whether that's reducing the ticket cost, advertising with discount codes (make sure your T&Cs allow this and you communicate clearly), Surprises here are how operators damage trust fast.
You can always go bigger once you understand your real demand.
Drawing winners properly
Selecting winners has to be squeaky-clean and visibly fair, otherwise your reputation will evaporate - and in a market driven by word of mouth and social proof, that's not something you can claw back easily.
Best practice includes:
- Running live draws (e.g. on Facebook Live or Instagram Live) with the entry list visible on screen. This is one of the most powerful trust signals you can demonstrate.
- Using a transparent random number generator - Google's "random number generator" works fine - and matching the drawn number to your published entry list on screen. See the below screenshot of a live draw screen made in canva. Programs like StreamLabs can take this overlay as a background, then you add the elements on the respective sections.
- Recording the draw and saving the file so you can produce proof later if needed. Disputes happen; having footage is your first line of defence.
- Logging winners in your admin portal so you keep a traceable record of payouts, announcements, and any alternates selected.
If a prize becomes unobtainable (discontinued product, supplier issue), you should have clear terms about offering an equal or better alternative, and follow your solicitor's advice. Don't wing it - get the process documented before you need it.
Talking to winners (and everyone else)
Good communication turns "someone won" into "this feels legit, I'll enter again." Every winner announcement is a marketing moment, not just an admin task.
- Email winners promptly with a clear list of what you need (delivery details, bank info for cash prizes, ID if appropriate) plus a response deadline - typically 7–14 days.
- Use simple automation: a winner email linked to a form that collects only the necessary details, feeding into a spreadsheet or your CRM. Avoid asking for sensitive info via direct message or social DMs.
- Send at least one reminder before moving on to an alternate winner, in line with your T&Cs.
- Share winner proof on social (with permission) - photos, unboxing videos, testimonials. This content is gold for building trust with future entrants who've never bought before.
Always stick to your published privacy policy, collect the minimum data you need, and store it securely. You're handling personal data under GDPR - that's a legal obligation, not a suggestion.
Managing risk, fraud, and chargebacks
Once you start taking card payments, you enter the world of:
- Suspicious activity (multiple cards from the same IP, mismatched billing details, high volumes of entries from new accounts right before a draw closes).
- Friendly fraud: "I don't remember this, must be dodgy" claims to the bank, often from people who absolutely do remember entering.
- Disgruntled customers who didn't read the terms and thought they were buying guaranteed prizes, or who expected a different draw outcome.
When chargebacks land, gateways often pull the funds back first and ask questions later. You improve your odds by:
- Having crystal-clear T&Cs explaining the nature of entries, odds, draw processes, and what happens if a competition doesn't fill.
- Keeping thorough records - order logs, draw recordings, winner announcements, comms.
- Responding politely and quickly when people complain. A quick, professional response often resolves issues before they escalate to a formal chargeback.
- Considering business insurance - public liability and professional indemnity are worth reviewing with a broker as your volume grows. Not mandatory from day one, but worth having on your radar.
Too many disputes or complaints can also spook your bank, gateway, or ad platforms - so this is not just a bookkeeping headache, it actively threatens your ability to trade.
Money, bookkeeping, and boring but vital admin
It's very tempting to see ticket money as "spare cash" and worry about the numbers later. That's how you end up promising more in prizes and ads than you actually have. Do the bookkeeping as you go, not in a panic at year end.
Use accounting software (Xero is popular in this space) and connect it directly to your bank feed. This automates transaction imports and lets you categorise everything properly. Here are the Xero nominal codes that map most naturally to a competition business:
- 200 - Sales: ticket revenue
- 310 - Cost of goods sold: prize costs
- 400 - Advertising: Meta ads, Google ads, sponsored posts
- 404 - Bank Fees: Bank charges, Bank tier subscriptions, Gateway fees
- 441 - Legal and professional fees: Solicitor, Accountant
- 463 - IT Software and Consumables: Website proviers, tech stack fees
- 485 - Subscriptions: platform, email tools, AI enhancements
- 325 - Direct Expenses: General expenses code
On top of that, you'll be paying:
- Companies House: £100 incorporation (one-off) and £110 per year for an online confirmation statement, as of early 2026.
- ICO registration if you're handling customer data for marketing, usually around £40–£60 a year.
- Bookkeeping support if you don't want to manage it yourself, often £75–£250 per month for small companies.
- Annual accounts and corporation tax return from an accountant - typically £500–£1,500 for a micro-company.
None of it is glamorous, but keeping on top of it is the difference between "fun little business" and "panic at tax time while your accountant sighs loudly down the phone."