I have excess ad space on a website. It is very cheap ad space, in the $8/month text ad range. Would it be best to create an affiliate program and pay a commission to affiliate marketers who sell the ad space or should I go with an ad agency who would sell the space for a commission?
The obvious answer may be both, but if you had to choose one....
At $8/month I don't think creating an affiliate program is worth the effort. Nor would an ad agency want it since the commission on $8/month is probably less than a dollar... which is not worth their time to sell it.
Your best bet is to go it alone and sell it yourself. Offer it up on forums like #*$! and SitePoint, etc. At that price, you will probably find a buyer.
[oddly this forum won't allow me to mention one of the forums above - which is Digital Point. Just google it and you can find it - Both sites have a marketplace for selling ad space]