Careful about the prize though. If the title "Fakku Writer" becomes something that's handed out x times a year, then it loses it's luster. Also, I don't think Jacob is going to keep giving us prizes more than once a year for a contest. So if you're really going to have to offer a prize for incentive, it might have to be out of your (or other sponsors) pockets.
Disgusting once wrote that, and I won't recommend giving it more than once per year, we probably should save it for something like the annual Winter contest~
I'd say we look forward to something appealing like doujins, and then slowly and steadily we try bringing them in by giving our full support towards their works. This Writers' Lounge is also a good place, try inviting many of the contestants here during or after the contest. Hopefully this contest could create an active community, well you get the big picture =D