Gateway seems to see the logo contests as just a way to hype the fact that they have a new disc on the way AND getting the artwork done essentially for free. Not exactly a great business plan IMO, but that's what they seem to be doing.
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That's a phenomenal business plan. Getting the community involved in their projects in order to promote their company? I'd say this is the best way to go. It gives the consumer a feeling of contribution which makes them wayyy more likely to buy and promote that company.