But there are some pitfalls for this. First, keep in mind that design work does take time. The promise of a few hundred dollars that a designer might get, no guarantee, is in effect creating a sweat-shop mentality. Consider for a moment your own product or service. Would you work for 10+ hours on something for the possibility of being paid, no guarantee?
If you are considering creating a design contest, please read up on what makes a contest fair and ethical as well as why contests aren’t always the best choice. There’s a wonderful movement called “No!Spec” that has begun shining a light on the flaws behind ‘free’ and ‘cheap’ design, photography and other spec work.