40-60 Split -- Am I getting hosed?

[webmastertexas]

Question: I'm considering joining a 3rd party advertiser (on a non-exclusive basis) so I can get targeted ads for my site.

They've sent me their contract, and here's the part that had me worried. As for the net revenue split, it's 60-40 -- them.

So, is getting 40% means I'm getting hosed, or is this standard with guys who supply targeted advertising? I know Fastclick offers 65% and Casale 70%. But the rates these guys are quoting are higher than both FC and CM. I'd say the rates are about 20% higher.

But considering that I'll only be getting 40% of that, is it worth it?

Any thoughts?

[tomkuegler]

I always think publishers should worry less about the split and more about how much revenue you are getting.

Just do the math and determine what your eCPM is. That is the only number that matters.

[jasonlambert]

a lot of companies do this, especially PPC result providers.
Sometimes you can raise your "share" of the revenue by agreeing to use them exclusivly - check with the company to see if this option is available to you.

[webmastertexas]

>>Sometimes you can raise your "share" of the revenue by agreeing to use them exclusivly - check with the company to see if this option is available to you.<<

No. They're strictly non-exclusive.

[Mr_N]

From my experience, companies with a 40-60 split do pull down more money overall. The one site I have that does run CPMs, the top money earner for the site with these ads has been a place that does a 40-60 split. They've been able to get much higher CPM and fill their inventory much better than any other place we work with. So, like another poster said, just keep an eye on the revenue, and forget about the percentage split.

[webmastertexas]

Thanks, guys. Their terms seem very reasonable. I can cancel/leave them anytime. And they have two upcoming campaigns I do want to run on the site.