How does Reader's Digest Make money?

[Bear924]

Hello all,

Yesterday I received a letter from Reader's Digest telling me that I was in the final draw for $450k ... or something like that. I like to read this type of material to analyse the marketing concepts being used which then led me thinking about Reader's Digest's business plan.

So... they send out a complex letter that will allow you to enter a draw for some $$$$. This draw doesn't cost any money to enter.

Method to enter draw requires reader to look through all the different papers that are also in the envelope with the letter.

Some of these papers are trying to sell something (an atlas yesterday)... some obviously some money making potential that way.

It is still possible to enter draw without purchasing or previewing anything so it's not a 'forced sale.'

Does anyone know whether RD actually has a draw and will eventually pay of money to someone somewhere or is it all just a sham to get people to read marketing material.

Anyone??

 

[aussierogue]

ah!

the readers digest sweepstakes.

dont do it. once you fill in the first form they will send you another telling you yve won somewthing small. winning allows you to enter a bigger draw etc etc...

its a scam and for a respectable publication im not sure why they do it.

if anyone works at readers digest would love to know why they do this!!

 

[Jacque]

Hehe I used to do these comps yrs ago and then got swamped under a ton of RD spam mail practically on a weekly basis, every envelope containing another chance for me to win something wonderful. I reckon you could fill these forms in for yrs and never win a dime. Anyway, it got so boring winning nothing that I eventually just binned them. Took a few address changes, however, for them to finally "lose" me.......

My advice to anyone wanting to start filling in their forms, DON'T!! Such a waste of valuable time......

 

[Redhaven]

Must admit we subscribed to the Digest last year. Mistake. For a company that produces a high quality mag and quite well edited "condensed" books they certainly have the highest amount of junk mail I have ever come across. I am sure if the greenies got onto them they'd have a field day. Yes the comp is free.....but........you do end up having to buy stuff to stay in it......or the wording is such that it misleads you into thinking that. Personally our family will not be resubscribing as I simply can't afford the time it takes to wade through their junk mail each week...if it was quick and concise I'd probably stay!

 

[Mrs Bird]

Mum and I entered into one of these draws about 7 years ago.
We knew exactly what we were in for but we did it as an experiment.
Religiously we filled out the coupons for the draw every few weeks as they came to our house, each one saying our names are going to the final draw and we are really close.

We did this for about 8 months...supposedly for the same draw
After a while, it felt like it was a giant circle of paper work, repeated but slightly reworded.
We stoped after we realise there was never going to a be a draw for the big prizes. How they get away with this....

Mrs Bird

 

[Peter 14.7]

Filled in a second chance at Monopoly Game at McDonalds once....

Three months later they sent a Sega Megadrive Video Game.

Peter 147

 

[dwyerfam]

I think you be surprised that there are some people out there who enter these comps all the time (i.e. buying products to enable an entry etc) in the hope they win something. (We all are like this aren't we?)

Gave it a go myself at one stage and won some useful things like entry tickets to the Gold Coast Indy car races, Woodworking Show and as well as some small prizes, like an iron, key rings etc (i.e. rubbish). Have given that game away now.

Danny D.

 

[Sultan of Swing]

A funny story ....

A few years ago we had a 'businessman' in his 50's looking for a house. He was quite excited saying he was about to come into some serious money.

He finally found a house he wanted to make an offer on. We started to get the details to prepare a contract and asked where he was getting the money from so we could write in a clause etc to cover him.

He was as serious as anyone can be..... his answer....'I'm about to win the Readers Digest Sweepstakes, they've sent me all the letters saying so.' He then pulls the letters out of his pocket to show us!!

We had to do everything we could to not laugh.

It was funny but quite sad at the same time. Needless to say, he didn't win the money or buy the house.

Cheers

 

[Andrew_A]

Funny if it isn't tragic

Good story SOS!

I remember a university professor (I was renting a room in his house) and several other highly "educated" people spending an evening back in 1996 discussing how they were going to deal with this "Nigerian matter" and spending many hours on the phone long distance to some Nigerian 911 mugu.

This particular Uni professor soon lost interest in the Nigerian matter as more tempting investments such as Joker88 (ponzi) and other such rubbish came up.

 

[geoffw]

I think you be surprised that there are some people out there who enter these comps all the time (i.e. buying products to enable an entry etc) in the hope they win something. (We all are like this aren't we?)

My sister, in small country town Victoria, has won a lot over the years- bicycles, clothes and the like. She doesn't earn very much, and the prizes have been a little extra which she would not otherwise have had.

 

[LucasK]

I once won a small fries in a Mcdonalds monopoly contest.

It wasn't a scam - I got my fries, very satisfied with it.