How much should I charge for CPA ads?

Customer wants to pay me per signup from ads on my site

[rpendry]

Hi

I have a very high-traffic website with regular visitors. I've been aproached by a potential customer who wants me to drive traffic to his members only website.

However he wants to pay me per new registration at his site, rather than per visitor I send him.

I'm being offered about 60 cents per signup, which seems very low indeed. Can anyone advise?

TIA
Rich

[growingdigital]

60 cents seems extremely low. I know some people who charge that much per click.

If I were you I would try and estimate his ROI. What is a lead worth to him? What is his conversion of leads to paying customers etc? Once you get this number I would ask for 50% of that. Marketing is the #1 cost for most sites, so make sure you are getting value out of the traffic you send him.

Depending what market you are in you could make more than he's offering just off AdSense.

[anallawalla]

If you know his CPA for Adwords, you should ask for something close to that figure, e.g. it might be $10 and you could ask for $5-8. Or you can find out what membership costs and think of a suitable figure.

I know my client's CPA for PPC and tried to cut a deal for 50% of that figure but he wasn't interested. So I give him free traffic and when it becomes a noticeable amount (he tracks it), I will renegotiate.