[bkbleikamp]

In general, good designers will not participate in contest as it is spec work which is always a bad way to do design work (or coding work, or anything else). If you value good design, pay for it. This is why there is controversy within the design community over sites like 99designs or the Sitepoint Design Contest forum.

It creates an underlying feeling that design is less important than the coding of the app - if you want a designer, bring them on as a co-founder and offer them equity. If your app requires a good user experience, you need a professional, not someone who spends a "few hours" to win a contest. I put "few hours" in quotes because that is a very low estimate for the amount of time it takes to create a great user interface.

Holding a contest is just a way to look at a bunch of free work and only reward one designer.