Thinking Of Running A Contest on Facebook? Think Again!

Posted on November 9th, 2009.

IMPORTANT UPDATE: November 13, 2009 from CNET News:

Last week, the massive social network announced that brands, advertisers, and marketers that want to run contests or sweepstakes on its platform have to go through an approval process first.

Getting that approval could be a new revenue stream for Facebook: according to multiple sources in the marketing industry, they’re being told that running a promotion in a Facebook application or "fan page" requires buying ad space too.

It’s pricey. The minimum ad buy is $10,000 for 30 days, using Facebook’s self-service advertising system, according to documents seen by CNET, or $30,000 for 30 days of Facebook home page ads. Priority in the approval process will be scaled, based on how much advertising space has been purchased.

[Bolding added by Mari]. Read the full article on CNET News here: Running a contest on Facebook? That’ll cost you.

Whew, the whole contest guidelines are more severe than I first realized!! What are your thoughts? How do you feel about using Facebook with these new developments? Add your comments below.

Though I’m really surprised at the severity of the new rules, I know we can all come up with creative ways to promote our brand/business/fan page outside of Facebook. It’ll be interesting to see what creative campaigns people launch now!

Original post follows:

image Facebook just released the latest revision of their Promotion Guidelines - as pertains to promoting a contest, competition, drawing or sweepstakes using your personal profile and/or Fan Page.

As is usually the case with legal jargon, it’s best to seek proper legal advice to interpret these new rules.

However, as one of my passions is to take the complex, simplify it and teach other peeps, here’s my attempt at demystifying these new guidelines and sharing the least you need to know:

  1. Facebook members CANNOT use the platform for any kind of contest, drawing, competition or sweepstakes without the prior written approval of Facebook.

  2. In order to work with a Facebook account representative, here’s the form you’ll need to fill out. [NOTE: the form has two fields - your country and your estimated budget starting at <$10,000. Do you get the impression Facebook is deterring the, um, "small guy?"!]

  3. IF you get such written approval, then you can ONLY administer the promotion via a third party application, and:
    1. The promotion can only appear on the canvas page (landing tab) of a fan page and/or via an application box on the boxes tab.
    2. …and, there’s not much point in reading further from here, because you need to have your own Facebook account executive to work with and provide that coveted written approval!!

Basically, when it comes to promoting any kind of competition or contest or drawing or sweepstakes on the Facebook platform, it seems Facebook wants to wash their hands off any potential legal ramifications. Period.

Approved Instead, for Facebook users to run any such promotion on the platform, Facebook is directing us to go through third party applications. That is, only with Facebook’s careful guidance and watchful eye.

You CAN publicize a promotion that is completely outside of Facebook — but it cannot mention Facebook in any way, shape or form, nor can you condition entry upon any action involving Facebook, e.g. joining a Fan Page, uploading a photo, updating a status, etc.

Basically, this means you can run any contest/competition/drawing you wish that has nothing to do with Facebook - you are duly approved to do so. LOL!!!

So there you have it. I thought this would be a lengthy blog post going into all the ramifications of running contests on Facebook… but, without that prior written approval from Facebook, I suggest you run any such promotions far away from Facebook! (Psst - perhaps on a site like Twitter?!)

As Facebook Expert, Justin Smith, says:

By requiring all promotions to occur within applications of some kind, Facebook is both keeping the News Feed cleaner and signaling to the tools community that it wants them heavily involved in the future of marketing on Facebook.

What are your thoughts? Have Facebook gone to the far side with these extreme conditions? Do you think they are justified in protecting themselves against legal ramifications with such promotions? Is the small guy/gal left out? Add your comments below:

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42 Responses to “Thinking Of Running A Contest on Facebook? Think Again!”

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I was expecting this post to be about some bad experience on holding a contest there. Never thought of the legal reasons about it on their site. Good info!

BWI
November 9th, 2009

Mari

Great recap of the legal jargon. Having worked in law for 13 years I can see where they are coming from. But at the same time there is no really legal out until a judge says so as regardless of the disclaimers, you can name them in a lawsuit. While from a legal standpoint I can appreciate the move but from a marketing standpoint I am left scratching my head as yeah it is a deterrent to the legit folks.

The most exasperating part of all of this is that many people would be willing to jump through the hoops to make sure their promotions, giveaways and contests met the legal rules, but Facebook seems to have just said, “Don’t Bother.” If you must gain approval through an account executive but account executives will only be assigned to those with big budgets, yikes. Can everyone say Catch 22?

Cindy Ratzlaff
November 9th, 2009

Thanks for this Mari. I’m going to have to really read the fine print on this one. Looks like promoting almost anything is a violation. Does that mean Starbucks won’t be able to offer links to coupon offers via facebook? And what about opt-ins for a free report? Does that now require written approval?

Jesse,

I’m glad I read your blog! I’m not surprised that Facebook has taken this position; it’s becoming more and more common. My old company just made this decision regarding their web tool, and I don’t blame them. Contest regulations are a bear, and the legal ramifications are steep.

It’s kind of a shame, and the for-pay games/contests/sweepstakes providers are expensive and clunky, but it will ultimately make me think harder about how to build community and a following without an easy incentive like a giveaway. A more valuable community, at that.

Laurel
November 9th, 2009

[...] Thinking Of Running A Contest on Facebook? Think Again! Share and Enjoy: [...]

Back to the drawing board. Thanks for the heads up! This makes for a lot more research as we were planning a promotion on FB.

Oh great, this can only mean more spam on Twitter.

Josh
November 9th, 2009

Time to go back to MySpace?

Sheila
November 9th, 2009

Thanks Mari. It is great to cut to the chase and tell us the bottom line….it seems that Facebook just doesn’t people to DO contests…right? :)

Barb
November 9th, 2009

Good (if harsh) analysis, Mari. theKbuzz will have a solution for small business that meets facebook’s new guidelines soon (ideally by 11/13).

Dave Kerpen
November 9th, 2009

LoL I’ve seen it over and over in the last 5 years. Once a website starts cutting off or limiting it’s 3rd party uses they start the downgrade towards their death.

In no way saying Facebook is dying. Just saying other websites that have made moves like this eventually started fading in popularity.

Justin Brooke
November 9th, 2009

Very interesting!!

I for one like these rules. It was really annoying to get all those updates from people joining this contest or that giveaway. I ended up hiding all those notices since I didn’t care for them. Maybe it’s bad for the little guy, but maybe not.

Does the law REALLY NEED TO BE THIS COMPLICATED?

I mean, come on, just kick off the spammers that get complaints!

Facebook is becoming less fun and more hassle.

This is another reminder that social media is just in the infant stage of its journey. Originally facebook was not meant to be a marketing tool and perhaps this is their way of claiming their vision back for their site. This gives all of us entrepreneurs a change to adapt and flex our creativity muscles!

@Josh your right does this mean even MORE spam on twitter? I am wondering what other sites will take from facebook’s actions?

Adeah
November 9th, 2009

I don’t blame FB for cleaning themselves up a bit though. There’s so much spamming, phishing, etc… they have to try to combat each, one evil force at at time.

OK, we’ll all use our blogs - to heck with FB! I used FB much more since the contest - now I’ll use/recommend it less!

Kelley M.
November 9th, 2009

[...] Facebook Contest- Now a NO NO? [...]

These new rules are confusing me. It seems to me that Facebook wants businesses to have Fan Pages and pay them for advertising, but don’t want them to be able to use their Fan pages to do anything fun with their Fans. As a business user, this kills me. I’m still trying to get in touch with my sales rep to find out exactly what these rules will mean for the monthly contests that we have been running on our Facebook page for the past year.

Patty g
November 10th, 2009

This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It is the old what goes around comes around routine. Great stuff on this blog!

Thanks for the info. That said, however, people must be able to get the written approval because I just entered to win one of their contests. A Netgear RangeMax WNDR3700 router. I’m happy people are willing to go through the legal ease to submit contests on Facebook because it’s an easy way to participate!!

katebythebay
November 10th, 2009

Curious…so running a contest on Facebook is prohibited without the prior consent of Facebook. How about promoting a contest on Facebook but using YouTube platform to run the contest?

2cre8
November 10th, 2009

[...] recent article from Mari Smith highlights the dangers of putting all of your marketing eggs in the Facebook [...]

I think it just plain wrong but oh well proving once again Facebook plays by their own rules…

[...] You can create contests using third party apps and some other ways that are too confusing (and very expensive) to try and explain. Mari Smith does a pretty good job explaining how you can go about that difficult process on her blog Read her post HERE [...]

[...] peterfletcher on November 10, 2009 A recent article from Mari Smith highlights the dangers of putting all of your marketing eggs in the Facebook basket. Imagine for a moment that you’ve [...]

I can always count on learning something new from Mari Smith. Just when I thought I knew it all, I could visit her site and she has more to offer each and every day. Your the greatest Mari !!

[...] allowed to use FB for running contests. here’s an article explaining why you can’t do it anymore:- http://whyfacebook.com/2009/11/09/th…k-think-again/ __________________ Julia Neal …because we ♥ admin! [...]

Seems like a trend…for every step forward for Facebook (profile layout improvements, for example), they take 2 steps back. Twitter is so much easier to understand and use, and there are always cool new improvements coming out via Twitter and 3rd party apps. I know where I’ll be spending more of my time!

I was planning to run a give away contest for my new book The Love Book: The Top 50 Most Trusted Experts Reveal Their Secrets for Relationship Success. at ExcellentRelationship.com I was hoping to help people by exploring what works for them. I am guessing I better not give anything away. Help!

Scott Braxton
November 13th, 2009

I posted about this on my blog yesterday and we’ve had quite a discussion on the comments over there. Some think it’s still okay, but I know that the verbiage says no, explicity, unless you’re running a contest using an App. I’ll refrain from using any part of FB in any of my giveaways.

Angie
November 15th, 2009

Here’s why: Facebook is bleeding red ink at the rate of $500,000 per quarter or more. They need to change their program or they are likely to go OOB.
Contests in California have certain rules and regs from the state and FCC that must be obeyed, otherwise big fine time.

Also, every state has different regs re: contests. I have a friend who does them here, but will not go to AZ with them because it’s too much of a hassle.

That’s my take on it. Good that rules are being put in place; bad that FB is taking advantage of it to raise cash. They could work it out another way.

I’ve never done a contest on Facebook and don’t think I’ve actually seen anyone else do one.

However, I do have a question — which is probably a moot point, since I’d have to get approval from FB first….or, would I?

I’ll just ask the question! Suppose I decide I want to hold a contest and create a landing page and marketing and promotion all completely Facebook-Free.

I currently use hellotxt.com to broadcast my tweets to several social networking sites (when that’s what I want to do for the particular tweet), including Facebook.

When it hits my Facebook status, would they consider that a prohibited marketing of a contest on their platform?

Tshombe
November 16th, 2009

Yeah, the facebook staff sat around and said “Alright, whaddaya say we target the ’small guy’ today?”. This article is soaked in so much fundamentalism over something that really doesn’t affect the average fb user it’s ridiculous.

Trevor
November 16th, 2009

[...] analysis of the implications of these new policies can be found on the blogs of Nick O’Neal, Justin Smith, Kristen Parrish , CNETand Mari [...]

Mari, thanks as usual for bringing this type of thing to everyone’s attention.

I have started a Facebook group to voice concerns about these new rules. I hope enough people will join so we can convince Facebook to make these guidelines less restrictive and prohibitive for small businesses and non-profits especially.

http://www.facebook.com/group.php?gid=196977872384

Prior to the new rules, I ran a contest to fill a fan page. The results were fabulous. But, alas, as soon as I found “the holy grail” the rules changed.

Although FB has many advantages in overall social marketing, at a moments notice we can get our hand slapped. What this means, follow the experts (like you Mari) to find out what is happening and keep up on the latest and greatest.

Kathleen Gage
November 18th, 2009

Thank you very much for the post. We were also planning a Facebook promotion but will need to think of a new venue.

Great idea. Go a head and making it live. There are many contest running today. You should try some thing new and unique.

Facebook Application Developer
November 19th, 2009

Thanks for posting this Mari

Maryellen Smith
November 19th, 2009

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