Contests and giveaways are a fun way to attract a lot more visitor to your site. Many blogs gained a lot of new readers just by organizing a few contests. There are many different contests that you can organize, so let me give you a few ideas that may help you get started.

-Organize a giveaway that offers as an award an mp3 player, book, business cards online, or a T-shirt. Ask people to submit their entry, and let them know that one of them will be randomly chosen. It is important to set a precise end time for such a contest. You should also let people know what the rewards are.
-In order to encourage people to participate in your contests, promise them that you will link to them from your post, even if they will not win. This way they will know that at least they will receive a linkback – it will be a win-win situation.
-Make sure that there are clear rules on requirements how to participate. You may ask them to create a post on their blog and discuss your giveaway. On the other hand, you may ask them to send you an email, or leave a comment on your website. Make sure you clearly specify what is required to participate.

People like participating in different kind of contests, as they are a win-win situation both for the participant and for the person who organizes such contest. The contest organizer receives links and traffic, while participants have a chance to some interesting rewards.