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I feel like calling these "leads" is misleading (pun noticed, but not intended).

Most of the people captured by this form will be interested in your money/prize and not your product. Ultimately, it seems like these leads will not convert to anything meaningful for you.

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Sweepstakes/contest marketing does actually create tons of leads, depending on how well you target it. For example, a company giving away their service (i.e. 6 months free) would be able to capture hundreds of people interested in that service, then have the opportunity to re-market to those that were not chosen as the winner.

Then why have a giveaway when you can simply give them a trial? If it's an ecommerce business, why distract ppl with a giveaway and give them a reason NOT to buy right now?

You certainly can give a trial, but say you wanted to give away one of your larger packages (i.e 1 year or 6 months of free service) then you could use a giveaway.

it still doesn't make sense to do it for most businesses. Most people visiting your site already have some interest in your service/product, and a giveaway will give them reason to not pay you at all. Why not give a free whitepaper? A free e-book. Free content. Free tool. Something that builds trust.

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