If you haven't participated in one, surely you've seen them. And be honest. Don't you feel compelled to enter simple contests that promise small, medium or even huge rewards for very little work?

That's the lure of contests. They're everywhere. They even form the foundation of the recent wave or reality television smash hits like American Idol, Survivor and The Amazing Race. All these shows are about winning some prize in the end.

But why are there so many, and what draws people to them? Competition attracts people. The promise of getting something for nothing is extremely attractive.

Whether you realize it or not, you implement this basic philosophy when you offer your subscribers a free report upon signing up. What if you could expand on that principle, hold a contest and attract many more people to you?

You can! All you need to say are the three magic words: "You can win!" With these words, your site will be instantly transformed into a traffic magnet.

Competition ignites passion in people even when there is no prize to win. Just being able to say you win is often prize enough. Don't believe me? Check out some of these websites who have contests where the prize is simply "bragging rights":

--HotorNot: users vote on people's looks to determine who is the best looking.

--MySpace: friends compete to see who can gain the most friends and to try to get themselves in the top 8 of as many people as possible.

--XuQa: users attempt to gain as many popularity points as possible through gathering virtual hugs and kisses, completing surveys and looking at ads. All these things help increase one's status.

Why run a contest, though? What does it do to increase traffic? Here are eight answers to those questions:

1. Contests give you a reason to capture information. People can only enter your contests if they provide you with their name and email information. This is a great way to grow your list.

2. You can get links to your site to help your search engine rank. More than 100 sites, many of which have a high amount of traffic, link to any sites that run contests. Once you start a contest, request these contest directories to add your link. Another way to get links is to make it a rule that every entrant post a quick blurb about your contest on his own site or on a forum and link to your contest announcement page.

3. Contests generate word-of-mouth marketing. Having friends tell other friends about you is the absolute best kind of marketing to receive for your site. You get quality leads for free!

4. You encourage repeat traffic. People bookmark you so they can come back often to check on the status of the contest. Then when they are ready to buy, they know where to look for you-in their favorites folder!

5. Develop a sense of community among your visitors. Your contest will show that your site is a place for friends to compete. You show them they are more than traffic; they are friends who come to you because they have a great time when they visit.

6. Gain a reputation for generosity. When you create a sense of goodwill by giving stuff away for nothing in return, people learn to like you and trust you. Fast.

7. The increased traffic will help you be a more attractive affiliate and joint venture partner. More people will want to work with you, and that will allow you to have a greater reach within your niche.

8. You build a sense of loyalty with your visitors. They like that you give them an opportunity to have fun and will want to reciprocate by buying your products.

To run an effective contest, it has to be able to generate consistent repeat traffic. Allowing people to enter every day or every week will accomplish that objective.