Sponsored Content: What is The Going Rate?

Or how to set a pricing for sponsored content

[Erku]

Recently I spoke with a fellow who manages several very large websites. I asked him, how are things going and how are you doing with finding new advertisers in this economy.

He told me, they have abandoned that avenue and are developing sponsored content. Have not spoken with him much in details. Planned conversation next week, but here is my question:

1. What is the going rate for a sponsored content? Let's say a company wants to sponsor a story that will be published on your site?

2. How is that rate determined?

3. Is this a good avenue to pursue for getting more revenues, or will it drive away visitors?

Thank you.

[Alex_TJ]

We're investigating something similar as well, though not diluting our editorial content too much.
Does anyone have any ideas on this?

[Syzygy]

1. What's your market?
2. What ad prices can your market sustain?
3. How will you charge - eyeballs, clickthru's, events, sales?
4. Define the offer - what is it exactly?
5. Where does the content come from - who writes it?
6. Who has editorial control over the content?
7. How long is the deal for?
8. How will the content be profiled?
9. How long will the content be profiled in that slot?
10. Where will the content go after it is no longer in the high profile slot?
11. What efforts will you take to market the content?
12. How will you invoice/bill the client - upfront or after 30 days?

That's for starters...

Syzygy