What do I charge someone who wants to advertise on my site?

Hi DJ
mind telling me what niche your website focuses on
Thanks
Derrick

if you have 200 page views daily then you can cash them using adsense and you can make handsome amount of money instead of selling them to advertisers

For me, it is generally $5 to $10 for small ads. That way I have more customers to advertise and its an easy $50 a month..

If you're looking to make a bigger chunk of cash upfront you can also offer placement for an entire year.

I do have an outline to offer rates for quarterly, 6 months and a year with a slight discount for a year paid in advance. But I think I should offer a simple hyperlink at one price and display ads at another. Then I could offer one page positioning, or I could offer it viewable on all my pages in a sidebar. And yet another price for newsletter advertising. I just don't know if I should start a hyperlink at $9 a month or $14 or $24?? Display ads at $25, $40 or $50 (for example)??

Derrick, my niche is very small compared to others. It is specific to caregivers and not just the general public. Clickbank doesn't have much in the way of applicable products, cj.com has some, so that's mostly what I have been promoting. Two years ago I did put adsense up but found it was mostly returning public service ads. There just wasn't much advertising in this market. So I took them out. I did put some on again recently to retry this.

Thanks for your helpful responses.

OK, typically I will use this formula to try to sell ad space. I will charge approx 10% of the profit that is generated by the ad block using that space.

If a buyer will not give me access. Like they do not want to share conversion. Usually, this is a negative person. They will come up in excuses. Yeah, so they do not have to pay. I tell them to go away.

We need results to calculate what the rent should be and these results are important for me. I need to know how much you make on each sale and what your conversion is.

For example, if I sell a report for $29.95, then typically I will make $10 after you take out all expenses. Therefore if an ad block will sell 500 reports a month the charge is $500 of the $5,000 the tenant makes.

This is a good rule of thumb for me. People will balk at 20% and 5% will barely cover my costs of running the web site so 10% is the sweet spot for us.

Your tenants will typically last a few months or at most a year. Sales the first month are stellar because the product is new. However after a few months all the people have bought who were interested and it is time for the tenant to move on.

Sadly, many will ask me to drop their rent to $400/mo or 300 even. That is because their sales are going down and expenses up. At this time many will drop me. That is OK because I have a stack of people waiting to jump in.

Thanks seobro for that idea. I might give it a try.

Charged that someone with a fair rate.

I was a an ad buyer for a large online company. Very rarely did we pay per month. When we did, it was usually a waste. Banner ads are usually sold on a CPM bases. That means cost per one thousand views.

The niche of your site will play an enormous factor in what the CPM rate should be. Here is a chart with some average prices from 2009...



Some of the most expensive niches are not even listed in that chart. Those include gambling, forex, and credit.

It depends on you but be sure to make a reasonable rate.

I would say advertise on blogs, that works for me and do it low key first to ensure you will get good traffic.

I have a sneaky way, you go and comment on the blog first to make sure it is getting high traffic, and you will get high quality visitors to your site. If this works, and you are happy with the results...its most likely you will get good results with a banner or text ad there.

I guess there is no real standard way to determine how much to charge for a monthly ad, be it a simple hyperlink or a display ad. Too many variables. I definitely want to be fair.

I think the products and services that could advertise will add value to those that visit my site. This will add to my credibility and authority in the niche and help with networking/JV possibilities too. I have no need to be greedy. So, I guess the advertising fee will be according to my conscience, and adjustments will be made (if necessary) for future advertisers.

Thanks for all your helpful suggestions.

Pricing is always hard because of so many factors to consider and so many opinions on what is fair. The best way to figure it out is this:

Charge the highest price someone is willing to pay you.

You will find your sweet spot by experience, but when you don't have any data or previous experience, you can't draw on that. So pick a number and try it. Let's say you ask for $100 per month, if the advertiser says yes right away, maybe you went a bit low, charge the next one $125 per month. Do this until you start getting people turning you down, then offer them a lower rate. It's the fine art of negotiation.

Here's an idea to help create "value" for the person advertising:

Once you set up your rate, put up an "advertising" page saying that it costs more to advertise than what he is paying.

For instance, if you charge him $30 per month, post your rates at, say, $40 or $50. That way he's feeling like he walked into a great deal. You might even find that people are willing to pay that $50 bucks a month, especially if you're getting the good traffic numbers you're talking about.

If you wanted to take it a step farther, you could create a list of advertisers, and occasionally send them "special deals" where they can save $5 here, or $10 there, or lock in a $5 per month discount if they pay for a year up front. You could even use this for advertising testing: Let's say you open up a new block somewhere, you could say you'll rotate it amongst the first three people to respond for free for two weeks, just to see how your "market" responds.

Just some ideas - I don't sell advertising on any of my sites, so this is all off-the-hip; kind of my offline experiences that I'm trying to force into the online world. If I'm trying to jam a square peg into a round hole, I apologize

You could also go to TextLinkAds | The Leader in Text Link Search Engine Optimization and see their prices. Keep in mind you would get only half of it if getting ads through them... Then come up with a reasonable number

I considered all of these great suggestions and then sent a rate sheet to my advertising inquirer. Now, I will see if they want to go ahead, or if it steers them away. Then I will know which direction to adjust the pricing.

Thanks for all your help!

speaking of all this advertising, I am in process of launching my real estate investing product, I have a budget, and I want advertise on the net. Obviously ill be targeting real estate investor forums and webportals, etc, but is there a one stop shop company, where I can go? I select "real estate" and it brings up rates, sites, options to advertise? if not, we should build it!!!