The site would be summed up as the Spanish TMZ or PerezHilton com. He averages 500,000 unique visitors a month, younger audience, most come for hot trends, gossip, celeb info.
Right now he runs with GlamMedia who pays him $2 CPM. They are his only source of income for the site and we told him we could do much better. GlamMedia is just putting up zip/email submits and $1 trial offers.
We are thinking that we could open him up a few CPA accounts, get the referral as a nice risidual and be able to make him much more money than he is currently getting.
The question is how should we propose the fee to him for this as far as price for month to manage the ads?
% over what he is making now?
Mixture of the two? Or something else?
He is also asking what he can expect for revenue once we take over. I don't even think I could ballpark this figure. Any ideas?
Thanks for any advice you all have.