That's sort of the problem for me, they haven't given us any idea what they're looking for, just a word limit. So I'm having trouble trying to work out the sort of story they'd like. I thought I might in one longer one and one that's just a couple hundred words. I don't think I'd send more than three - I agree that that would feel like spamming, if not to them, then at least to me.
And yeah, I wouldn't spend money on a competition either.
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And yeah, I wouldn't spend money on a competition either.