How do companies afford giveaway sweepstakes?

Dear John: My daughter and I receive many letters from Publishers Clearing House about its $5,000-a-week giveaway for life. How does the company do it?

And what if they go out of business or investigated? Do I still get my money? R.L.

Dear R.L. The contest is legit, from everything I read. And the chances of you winning are very slim since hundreds of millions of those enticements are sent out each month.

How does it pay the winner?

Publishers Clearing House is a very big company and sells lots of things, from magazines to trinkets to timeshares. It pays the sweepstakes winner out of its profits.

What if they go out of business? I guess you’d become a creditor of the company and would get paid on the same basis as everyone else it owes money to.

Win the prize first. Worry about all the other stuff after you win.