It's very much the Swoopo of design ;)

The majority of effort (cost) expended is provided by the crowd - one person (the contest holder) gets to monopolise on this spread cost, while the majority of the people who take part in the competition end up with no payment or benefit whatsoever.

It's an inconvenient truth - one which many people who use 99designs try to overlook.

The big difference is that on Swoopo you lose your investment if you don't win. But on 99designs you can still keep the design and get the feedback that it wasn't the right thing, and what was. Even if you don't get the job, you still get the practise and feedback. So I think there is at least some benefit.

You're not competing for the job - you're provided with the job when you enter.

You're competing for payment. There's a big difference.

I think expecting participants to be grateful for the opportunity to practice stretches credulity a little.