Anyone can sponsor a contest; contests can be in any category, any topic. If we have not already established a means for hosting and judging the contest you want, you will have to suggest it before you can sponsor it.
Contests can be for any activity legal in the United States.
When you sponsor a contest, 10% of the money goes to the website for providing the framework.
You will be given several choices on how your prize money is to be distributed, for instance, divided equally among all contestants? Only to the 1st place winner? 50% to 1st place, 30% to 2nd, etc?
You can be the SOLE sponsor of a contest simply by checking the appropriate box (once the system is set up), however, if you limit the ability of other people to add to the contest “kitty”, you might reduce the number of people competing.
Why would you want to be the SOLE sponsor? Sole sponsors of a contest retain the right to use all properly submitted contest entries, only sharing that right with the contest site (and that usage is limited, see the appropriate section), and the original creator of the contest entry (and their usage is limited, also; they can’t turn around and sell it to someone else). SOLE sponsors are also able to set some of the contest rules, like minimum number of entries allowed, and which member classes have voting rights.
In addition to sponsors, advertisers provide money for the “Kitty”; see more details on advertising in the appropriate section.
Generally speaking, every time someone surfs in to look at contest entries, some of the advertising revenue (up to 80% in some circumstances) goes to the Kitty (Note: The Kitty is not yet automated. give us time). A popular contest can have more money in the Kitty from advertising than sponsorship, while a unpopular site could be limited to Sponsor Kitty Kash only. Advertising Kitty funds are dispersed in this way on contests with over 10 entries: 60% to the first place winner, 25% to 2nd place, 15% for 3rd (yes, you can end up with 1/70th of a cent in your Awards account).
So, what can Winners do with the money in their account? Well, one of the things you can do is withdraw it via PayPal. Other possibilities are: Buying things from the store, Sponsoring contests, Giving it away, buying premium memberships, buying other people premium memberships, etc.