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What To Charge for An Ad for Another Business on My Site?
joysie

5+ Year Member



 
Msg#: 3892013 posted 1:11 pm on Apr 14, 2009 (gmt 0)

Good Morning!

I have had a request from a small business to put an ad for their business on my site. A blurb about them with a photo. I have no idea how this works or what I should charge if anything, other than the time it takes to put the info on the site. The business owner mentioned that some people charge a percentage of purchase.

Any suggestions will be greatly appreciated.

 

Noton

5+ Year Member



 
Msg#: 3892013 posted 8:49 pm on Apr 16, 2009 (gmt 0)

If you have a good user base that would be interested in what the other business is offering then the percentage of purchase (CPA) option that they suggested could work the best.

This basically means if users of your website go to their website and buy something you get part of the sale. The only issue comes if they are not being honest in tracking, ask if they are using a 3rd party to handle the tracking, such as CJ.com, LinkShare.com, or others like that.

If your not sure that the ad will attract a lot of your users, then you might want to ask for an upfront fee, if you are using AdSense currently take a look and see how much revenue you make per user, then factor in a growth of at least 1/3 over the next year and give a pricing based on the projected possible loss in AdSense revenue if users where clicking on this ad rather then on the AdSense.

If you don't have AdSense and don't know if your users will like the offer from other other business, then try and simply price on a monthly basis and watch what happens. If your users like it and you see they are using the ad often, you might want to renegotiate the following month, but if your users don't like it you are able to remove the banner the following month. As for a pricing point, its hard to give a arbitrary price, but I go with give a price based on what you can do with the money. If selling the ad space for 1 month at $200 buys you those shoes you've been eyeing then $200 is a good price, it all depends on what you feel your time and website is worth.

joysie

5+ Year Member



 
Msg#: 3892013 posted 1:53 pm on Apr 17, 2009 (gmt 0)

THANK YOU for your detailed and thought out response!

Digmen1

5+ Year Member



 
Msg#: 3892013 posted 12:15 am on Apr 29, 2009 (gmt 0)

Yes I like the idea of asking sites to place an ad for my site. I am not sure what is a good price to pay though.
A lot would depend on how popular the site is, how many hits they they get !
But I would like to run a trial ad for a month for a low cost.
If it worked, then obviously I would be prepared to pay more.

Jack_Hughes

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3892013 posted 2:09 pm on Apr 30, 2009 (gmt 0)

@joysie - make sure the company has a closed loop selling process ie you can't buy by ringing the company up through a phone number advertised on the site. You may not get as much income if a lot of your visitors use the offline method of purchasing.

maximillianos

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3892013 posted 2:57 pm on Apr 30, 2009 (gmt 0)

Also make sure they are not just looking for a link to boost their PR. A sure way to avoid problems is to use a nofollow on the ad's link to let search engines know it is a paid link.

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