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How much to charge for advertising on my site?

by danp142
9 replies
I have a website in the tourist attraction niche that gets about 100 - 150 hits a day.

I have been looking at ways to increase revenue so I contacted a company that has set up a service in the building that my website is about. They have returned my email asking for my best price for exclusive advertising and I realise that I don't have a clue!

The people visiting my website would be hot leads for this business, but I am also aware that 150 visitors a day isn't massive. Essentially I'm stumped for what I should be charging. By the way the company I'm in contact with charges £40 for their service per person.

I'm relatively new to this IM business, only started trying to monetize my site about 6 months ago and I'm up to about £100 a month in affiliate revenue.

I know these things are hand to judge without knowing all the facts, but any suggestions from some seasoned pro's would be very welcome. Cheers.
#advertising #charge #site
  • Profile picture of the author Frank Donovan
    Interesting idea you've come up with.

    Without knowing the margins your potential advertiser is working on, I'd estimate that a charge of at least £5 per lead is realistic. Using a 5% visitor to conversion ratio, that would equate to around £750 per month on current traffic.

    If your advertiser wants exclusivity, you'd be justified in asking for a premium. Talk to them about a sponsorship deal at, say, £1k per month for a limited period.

    Good luck!


    Frank
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  • Profile picture of the author Gambino
    I would capture the potential customers information and sell them as leads. Get paid a set dollar amount for each lead.
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    • Profile picture of the author RyanLB
      Originally Posted by Gambino View Post

      I would capture the potential customers information and sell them as leads. Get paid a set dollar amount for each lead.
      This is the correct answer in my opinion. You can't really sell advertising until you know what your traffic is worth. If you overcharge, they'll just pull the ads.
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      I'm a Freelance Copywriter that helps Agencies, Startups and Businesses Educate Their Audience and Grow Sales
      Skype Me: r.boze
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  • Profile picture of the author moneymakingpillarsx
    You try start out with a small fee and see how it goes then you can move from there
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    David Oriol
    -------------------------------------------------->>>
    AFFILIATE links and sites you don't control!) Get all the details here

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  • Profile picture of the author danp142
    Thanks for the responses everyone.

    I think I should make it more clear my situation:

    Essentially I run a website about a famous building in London. At the top of this building is a viewing platform like you get at most tall towers (such as Empire State, Eiffel tower etc..)

    I have affiliate links to companies selling tickets to the viewing platform which I where I get most of my money thus far.

    Recently a yoga company started running yoga classes on within the space of this viewing gallery and I contacted them regarding advertising, and here I am!

    Clearly they are interested in advertising as they have requested my rate for exclusive advertising. I assume I would need to be cheaper than google ad words for them to bother?
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    • Profile picture of the author danp142
      Sorry to bump this thread. But I had a thought.

      Should I use google ad words as a starting point to determine the price of a lead/click? If the most relevant search term is $1 per click, should I beat that?
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      • Profile picture of the author m30jake
        Originally Posted by danp142 View Post

        Sorry to bump this thread. But I had a thought.

        Should I use google ad words as a starting point to determine the price of a lead/click? If the most relevant search term is $1 per click, should I beat that?
        Can you PM me your site?
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      • Profile picture of the author Frank Donovan
        Originally Posted by danp142 View Post

        Should I use google ad words as a starting point to determine the price of a lead/click? If the most relevant search term is $1 per click, should I beat that?
        The Google PPC rate would only be relevant if your site appeared in the top three positions on the first page for any particular search term.

        Considering the business of your potential advertiser, I'm not sure what search term would be most relevant. Anyone searching for "Shard" isn't necessarily looking for a yoga class. Likewise, those typing in "Yoga" won't be thinking of the building. That could be why they're seeking to advertise on a website, rather than PPC.

        However, anyone clicking on a yoga ad within your site, would be a lot more targeted than if they'd clicked on a generic PPC term. On that basis, you'd be justified in charging a higher rate for those clicks.

        Longer term, if I wanted to maximise the revenue of the site, I'd consider capturing leads. Once you have the contact details of a targeted group, you could negotiate discounts for in-house services such as the viewing platform, restaurants, yoga classes - and even expand to include other London attractions - and charge accordingly for each offer you send.


        Frank
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        • Profile picture of the author danp142
          Thanks Frank.

          I've got a good basis of where to start negotiations.

          I have got a list of about 300 people which I don't really do much with. I guess I'll start ramping it up soon.
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