by 
Anonymous
ANSWERS: 5
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There are two ways game shows can afford to give money to contestants. One way is advertisements. Businesses pay the network to air their commercials and the network pays its employees and the contestants. Another way is insurance. I don't know how common it is, but the show "Who Wants to be a Millionare" did not pay the contestants, their Insurance company did. When contestants on "Millionare" started winning more and more money, their Insurance company told them "make the questions harder or we're out!" :)
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The amounts of money given away to contestants is actually rather modest compared to salaries for "stars" of scripted shows (remember when the salaries for the six principals on "Friends" hit $1Milllion each per episode?). Game shows turn out to be relatively cheap to produce, compared to the advertising revenue they can generate.
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Advertising pays it -
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They money that they have is nothing compared to the amount of money they'd have to pay to have a regular show with actors and all that goes with actors, like costumeing, hair, makeup. Any game show or reality show is much cheaper to produce. They can give millions away and still make more omney from the advertising time sold.
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