beebware - 12:40 pm on Sep 9, 2010 (gmt 0)

2. I've just had a call out of the blue to get a sponsored listing right at the top of the page for a month for £120. Is this a good price?

Which search engine and what sort of search term? If they are offering a Google Adword for a broad term such as "widget", which is relevant to your industry I'd grab it like a shot, if it's Google for a very specific term "yellow small widgets in city" avoid like the plague, if however it is for a small search engine for a specific term then your it's your choice (I think a certain yellow company has approached your for a directory listing, I've never heard anyone say that the paid listing is worth it).

Google do not charge for Adwords management, but you may find that it's worth finding an Adwords Management company to help assist making the most of your budget (as they "know" Adwords and can tweak your keywords and campaign setting to maximise clicks whilst minimising costs) - however, they do charge a fee for their services (but a good company will be able to save you at least that!)