Sponors and Giveaways

I have a blog that I would like to get sponsors for. How do you go about doing that?

I also have an idea to host a week long giveaway the week of my blogs "birthday".

I was thinking of emailing a few Etsy sellers I have featured and asking them to donate an item in exchange for free advertising.

Question:
1. Is that a good idea? Is that proper blog etiquette?
2. How long should I offer free advertising? Forever or like 2-3 months?

Thanks
Alex
http://beforethebabywakes.blogspot.com