09-09-2020, 06:12 PM
rjmacs wrote:
[quote=Don C]
I used to return those, back in the postal mail days. Think I may have bought a magazine one year hoping to increase my odds.
Always wonder, though, how they can afford that payout selling magazine subscriptions. It takes a LOT of $19.95 subscriptions to cover the cost of a thousand dollars a day for life. I presume that they are selling your contact information, but even so, that seems to be a lot of money going out.
You may be underestimating the SuckerQuotient™ of most people...
...and possibly overestimating the cost of the annuity they would purchase to cover the prize. That would probably be no more than $9-10 million. For that I am assuming a fairly low interest rate, PCH may be able to get one at a better rate which will reduce the price.
Considering how many million response they get, the value of the confirmed address lists they can sell is better than many available out there. So they probably make a good deal of money on that over and above whatever cut of the subscriptions they get. The shrinking of the print magazine market won't be helping their long term income, but addresses are always valuable.