I just received an advertising request. I want to know how to set a price

Would he be replacing any existing advertising. If so take the total of the revenue and add 10%. Or go to another site in the same niche and ask what their prices are. So you keep the price point the same and the value of ads in you niche where they should be.

Sponsored posts are posts that promote his site. Think of them as solo ads for blogs/websites. By law (if I remember correctly), you have to put some form of disclaimer that it's a sponsored posts, but in general they can be a decent way of getting traffic (and in your case, making money).

There are a number of sites for selling sponsored posts. If it's a route you're interested in, I'd definitely look into it, seeing as someone went out of their way to request one from you (without even being listed on one of those sites).

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Please help guys. Would I go for it? Should I accept his offer? for how much?

My site is PR 1 and is shown in the first page of google for 3 of my targeted keywords. I'm not sure with the other keywords. LOL

It's a big website with around 200+ posts.

PLEASE HELP...[/QUOTE]

Here's what I'd do. Come up with a standard rate for both text ads and sponsored posts. For the posts, say $20-$30 a pop. It's hard for me to tell without seeing your exact site, but that's what I'd do knowing what I do about them.

Text ads you could charge per click or per impression, that's up to you. If you charged $0.50 a click and got $10 clicks in a week, that's $5.00 just for small text ads. Again, based on your site your rate might be different but in the $0.50 to $1.00/click would be easy to sell.

Finally, I would accept.

Thank you for the reply.

I just replied to the offer 2 hours after I received his email. I showed him my ad rates (banner, in text link, and sponsored post).

Robestrong, thank you very much for explaining everything. I followed your tips. You've been very helpful.

I'm still waiting for his reply. I hope to get some ad $$$$ this time. LOL