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Ad Revenue vs Charging for Site & Software
What is a good selling proposition?
poet

5+ Year Member



 
Msg#: 11045 posted 10:17 pm on Dec 8, 2005 (gmt 0)

I have a dedicated server and I am developing cms software that is suited for writers who want to create their own online magazines (more sophisticated than a blog). I am offering this software and membership in an exclusive and limited umbrella group of online pubilcations. Each publication will have its own domain name and site, but they will receive traffic and SEO tips from the umbrella site which we will be promoting heavily in the offline world.

I need to negotiate with the editors of my online magazines. I need Ad revenue or cash payment or? to make this venture worth my time. Is the following a good proposition for me, given ad revenue expectations for text sites with ideas and verve, but no advice on plumbing or rims or kites or . . .

My proposal to my Editors:
1. If you have an existing blog that has a lot of traffic: software, storage, bandwidth, website are free; we split the income from the ads.
2. If you have a new blog or no blog and are starting fresh: software, etc. are free; no split on the ads. (When your traffic builds to a certain point, then we split on the ads.)
3. If no ads, then $100/month for software, etc. and more for additional bandwith / storage. (Editors could raise the $ from a sponsor.) (At the bottom of the page, there will be a copyright notice for the Editor and "powered by cunepress.com" credit/link for the technology provider.

 

sbskater10

5+ Year Member



 
Msg#: 11045 posted 11:25 pm on Dec 8, 2005 (gmt 0)

I don't know how well splitting ad revenue is going to go over.

If their traffic is significant enough to generate any descent amount of ad dollars, it would be very difficult to have them use your service for a piece of their earnings.

I understand your system is more sophisticated, but is it really enticing enough to support this kind of payment model?

poet

5+ Year Member



 
Msg#: 11045 posted 1:48 am on Dec 9, 2005 (gmt 0)

sbskater:

I follow you.

If I asked someone on this forum to move their site to my server and software in exchange for a split on the ad revenue, they would say that the deal was not fair to them, because their ad revenue would not double because of the shift, therefore it would cost them money.

But, if I asked someone who has a site that generates traffic and currently has NO ad revenue to partner with me . . . I would monetize their site or let them shift to my server and give them both my software and my monetization services. Instead of asking them for cash payments up front, I would ask them for a split on the future income. (Or they can pay me a consultant's fee, their choice.) Is this a selling proposition?

What if I asked someone who has no website and is committed to our principles. I offer to create their website, provide the technology, the bandwidth, the SEO advice, the tweaking . . . and they let me have the ad revenue. I am giving them an opportunity to have their own online publication and to get their writing out there and to influence public debate . . . and they are giving me ad revenue to support my technology. Is this a selling proposition?

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