When asking for links, what are good incentives to offer?
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The best incentive you could possibly offer is great content. Something that truly benefits their readers/visitors. But the non-utopian answer would be what Shannon said - free random offline item that isn't really e-traceable and is inexpensive.
On a side note, I may give you a link for the gallon of milk thing... just saying...
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Back to the milk thing:
If you make it funny it could be a really good link bait scheme!
Create a separate website all about doing the challenge, generating tons of links*, and then just 301 it into your main website when the fad is over!
*Not exactly sure what kind of links you would get from puking on camera...
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I would link to that as well. Its gross but awesome!
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I've never tried it. But that gallon of milk sitting in my fridge looks rather tempting right about now

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Do it! Do it!
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Cheap wine?
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Exactly! Things like cheap wine, cigars etc are all good ways.
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I second that idea. Guaranteed re-tweet on that video.
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I prefer writing a short blog for a link. They can either post it in their blog or your own. We all know sometimes coming with ideas for blogs for your own site is very tedious.
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I'm sure you've read this as much as I have Brett, but a top 10 list is a good way to spend a brain-dead writing day.
Top Ten Prizes for Hole In Ones or 10 Worst Prizes Ever Used for Hole In Ones
or
10 Reasons Why I Shouldn't Have Ate That Burrito Before the Back 9
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You could write a positive article about them or provide them with a testimonial that they can add to their site.