Adweek recently ran an article about the 7 types of Twitter contests that can be run, which you'll find below along with my comments on how it applies to your fanbase.
1. Photo Contests - Ask the entrants to post of photo of themselves showing a piece of your merch or a CD, or at one of your shows.
2. Most Creative Or Funny Answer Contest - Ask your followers to submit a creative or funny answer to a question that you tweet. Make sure to include a hashtag as part of the campaign.
3. Retweet To Enter Contest - All your followers have to do is retweet your contest tweet and they'll be entered to win.
4. Follow To Win Contest - This is a bit of cross-promotion across some other social networks, where you let them know that if they follow you on Twitter they're automatically entered into the contest. Please note that you can't ask someone to follow you directly on Twitter as it violates their terms and conditions.
5. First To Answer Contest - This happens really quickly, which means the contest is quick as well. It's simple - ask a question, and whoever tweets the correct answer first wins.
6. Tweet A Hashtag Contest - All the follower has to do to enter is include a hashtag that you create in a tweet.
7. Caption Contest - Ask your followers to tweet a funny or interesting caption for a photo that you tweet.
In all cases, make sure to retweet and thank each entry, then give a winner a lot of Twitter love.
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