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I embarked a while back on running a contest to give away $1,000 on my blog, http://www.douglaskarr.com. The contest is currently running through 11/25 but I've already learned some valuable lessons:

1. Sponsors are attracted by quantity, not quality of the prizes. I thought cash would be a big deal, but it may not have the impact that some unique prizes have.

2. Contestants appear cynical if your contest require them to take action, be cautious of what you ask them to do.

3. Make it simple. My first draft required too much and readers immediately jumped on me that it wasn't worth it.

4. Have 3 sections to your Announcement: 1. What to Win. 2. How to Win. 3. Any specific rules.

5. Be sure to have your sponsors announce the contest as well.

6. Be cautious about the length your contest runs. Provide enough time for a contestant to do what's needed, but not too much time that they'll lose interest. You may even want a little bit of a sense of urgency.

7. Announce the contest with a countdown to the day it ends - every day.

8. Pass on the prizes, quickly.

I'm looking forward to learning much more with this, my first contest - but I did want to share what I've learned thus far. If you'd like to see the contest announcement: http://www.douglaskarr.com/2007/11/11/1000-giveaway-launch/