I look after a small (currently <100 visitors/day but growing rapidly) specialist web site and have been aproached by an ad agency to place ads for a (highly relevant) Australian gov department on the site.
The site has no ads so far and they have sent through 8 example ads (mixture of flash and gif, 300x250 and 468x60).
So, where do I go from here? CPC or CPM? How much to charge?
Tracking Software - Is that up to me to sort out or them? Anything to look (out) for in a tracking program. What are tracking programs called (so I know what to search for).
Agency tracking systems could include DoubleClick Dart, AltlasDMT, EyeBlaster for rich media.
As for price, start high and let them bring you down a little bit. Look at click prices on Overture & AdWords for the market. Banner prices are all over the map and banners work to different degrees. Advertise on something like HomeBuilder or some other specialized site and you'll pay through the nose for it, other sites are almost free.
How rapidly are you growing? 500% a month? 100% a month?
I've got some niche sites running at about 1500+ visitors a day and we don't bother with CPC/CPM arangements at all. If someone wants to purchase advertising, they take a monthly package at a flat fee. The contract says we will not take more than two competing advertisers (for a premium the first one can ensure an exclusive).
We also look for 3 to 6 month deals with payment in advance.