I am split here...
Other than women I believe that cash contests is the way to go. The problem is that 50-60 bucks doesn't really seem to do it for people. To be frank... We had 100x better results giving away points on the old site than we do money on this site. I think that if the prizes were higher (something we can't really do) then it would probably work out better... If you tell someone they can make 100 dollars for playing a game they like or a fun contest versus 30-40 they get now it might make more of an impact.
I personally wasn't the one that went apeshit and pitched the whole cash contest thing. I think that giving away money is great and all but that it's personally better spent on advertising. We give away 100 bucks to a tourney split 3 ways and 2 people get near nothing or even worse if it's a team tournament. Or take the money tossed into the COTW that had a 25 then 50 dollar prize with near nothing submission wise. We offer 50, 100 and other larger ites offer 100 to 500+ for random shit wether its paid or not and people just talk down about how 'low' ours are. Again, I wasn't the one that went apeshit for this type of stuff. I prefer either prizes or nothing.
I don't know why but if you offered up a true XBL subscription or a popular new game someone will need or want one of these even if the cash equiv equal or less. So many people wanted Halo 3... Why not give it away? So many people wanted GH3, why not give it away. Everyone and there fucking dog wants XBL subs....
Anyway...
My view is either go big, go with prizes, or don't go at all....
My point stands that on the old site, points were more valuable than petty cash.
This was a completely ramble and is a broken rant so don't overly criticize for spelling or grammar. I am not reading thing over.