I read a lot of writing blogs. Like most professions, it depends on which side of the business that you're on, how you choose to operate. I'm not sure who all of the writers are that say that story, article, and essay contests are a waste of time, but they must already have an agent that does their worrying for them.
When there is a recession, a plumber goes out and explores every possible option for a job. It really doesn't matter if he was the star of the town in the past. The same goes for actors, teachers, mechanics or whatever else that a person might be professionally trained to do. If you call yourself a writer, unless you're John Grisham (and by the way, his last book had the MAXIMUM marketing campaign that I have ever seen!), you need to pursue a paying publication, or even two or three EVERY day if you need to pay the bills.
If you are otherwise unemployed, you will need to buy food and gas for your family. Many competitive stores and product manufacturers have essay contests on "Why I Like Their Product The Best." You are one lucky writer if this is a product that you normally purchase. The prizes are usually in the form of product.
I lived in a small surf town in California for a while. The local grocery store had those TV Guide contests where you had to provide the code from the grocery line TV Guide, a grocery receipt for anything over $10.00, and an essay. Most people didn't participate at all, so there was my $500.00 worth of groceries three times in a year!
Most recently, I participated in an essay contest for my Chinese Herb Company. I order from them once a month. Runner up got me a mention in their trade newsletter (which is where my clients and colleagues shop), and $100.00 worth of product.
So, whoever the hotshot writers are that think that contests are a waste of time, congratulations! Either you're an accomplished novelist, or an unemployed factory worker that will never have the joy of being a working writer.
I am determined to write rather than wait tables. Nothing against waiting tables, it's just more fun to hunt down quirky but profitable writing gigs.