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How to calculate direct advertising rates?

small business wants to advertise on my site

10:02 am on Feb 10, 2010 (gmt 0)

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I run a (very) small content site that is quite successful with the keywords in its niche. Some one who runs a shop that sells the products my site is about just contacted me asking if he could advertise on my site. I won't be tracking clicks or using ad management software.

How does one go about calculating the rates I should charge him? I was thinking of just charging what I make off adsense + 15 - 20%? I know this is a very open ended question.
10:18 am on Feb 10, 2010 (gmt 0)

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Make it Adsense times 2 as your traffic seems to be ultra targeted. Also it is said that Google only pays out about 50% of the original click cost.
You can give them a discount if they book your space for a longer period and pay in advance.