Feedback on my business idea

[supermoves]

Hey guys...I won't post the URL yet, because I don't want anyone to think I'm spamming...but I would love your thoughts on my business idea...

 

I have launched a website that sells posters for $10.  With each poster comes a free entry into a drawing to win a watch (this method is necissary to make everything legal).  Each poster only sells 1,200 copies.  Watches include brands like Rolex, Panerai, IWC and they are all new and authentic.  As soon as we sell 1,200 posters, we choose a winner.  Immediately, we put up a new poster associated with a new drawing. This means a single poster would give you a 1 in 1200 chance of winning and for $120 you'd have a 1 in 10 chance of winning. 

 

Its ok if you think its stupid...I'm just looking for opinions.

 

Thanks!

[Kck74]

A similar idea to "the best of the best" (think they're called that) I'm often going through Bahrain airport and you can but a raffle ticket to win a supercar.

So, it's a raffle, but you have to buy something?

[fraggle42]

It's daft.

 

It will take that long to get 1200 people interested I'd be surprised if you get the first watch drawn.

 

The only way you can attract a lot of attention is by thinking of the next big, unique, not thought of before, thing. Like http://en.wikipedia.org/wiki/The_Million_Dollar_Homepage

 

If you can think of something that attracts interest like wildfire, you could promote anything and it'll be a winner.

[watchfreund]

... and for $120 you'd have a 1 in 10 chance of winning. 

 

1 in 100 

[supermoves]

Yes, its very similar to best of the best....and they pull in nearly 12 million in a year.  Their prizes are much larger...Ferraris, etc...but the tickets are much more expensive as well...up to $100 for one ticket.

 

Yes, sorry...1 in 100....thats what I meant :-)

 

So overall, would you guys buy a ticket?

[tomhorn]

If you are in the US, and not tied to a charity, in most States you are probably going to jail. In every State there are specific laws governing these types of things. For example, in California you have to be a non-profit and the majority of the gross sales has to go to charity.

 

I say this in all seriousness as someone who has run legal online gaming companies, and is very familiar with the various laws regarding gambling, raffles, lotteries and other similar forms of games of skill and games of chance. Having someone buy a poster to get a 'free' raffle ticket is just semantics. If you get big enough to get noticed, a prosecutor will slice through that argument in a matter of minutes. You'll be doubly exposed if you do it online.

 

Even when doing charity fundraising, given your description of how this is going to work (free tickets to a raffle) you will still need to give away free entries into the drawing to anyone who asks, regardless of whether or not they buy a poster. Which pretty much kills your business model.

 

If you want to proceed, then I would suggest you contact a lawyer that specializes in US gaming laws and check all 50 States. Only sell 'posters' in those States that you get clearance for.

 

Assuming you clear that hurdle, how are people going to pay you for the 'poster'? You'll find it next to impossible to find a bank that will process those types of transactions for you thanks to the UIEGA..

 

http://en.wikipedia.org/wiki/Unlawful_Internet_Gambling_Enforcement_Act_of_2006

 

And Operation Choke Point:

 

http://www.theguardian.com/money/2014/mar/23/operation-choke-point-payday-lenders-issa-banks

 

Just so everyone knows, Best of the Best is not a US company. Laws are different in the UK.

 

 

[Nightwatch]

I think its a better idea to just sell the posters at $9 without any raffle.