Selling & Advertising - How much money?

myname1001 · 03-21-2006, 12:57 PM

My Question:

Let's say I have a website, I'll call it www.site1.com, that gets a total of over 200,000 UNIQUE visitors each month, and well over 1,000,000 (1mill) total page views per month - and doesn't require ANY paid advertising for this site, NONE. All the traffic comes from a larger site, i'll call it www.site2.com, which I also own. (In simpler terms, site1.com gets all of it's traffic from site2.com, but they are both my sites.) So, I decide I want to sell site1.com. Let's say it makes no monthly or yearly profit, and costs $250 per month to run, but still a very valuable site due to the traffic it receives. Now, After reading up on the subject of selling a web site it was very obvious that there is no specific or set-way to determine the value of the site, and that it can be highly negoiatable, plus depends greatly on the buyer, the seller, the site, ect. So, i'd like to get responses from as many people as I can with the amount of money they would try to sell site1.com for, based on the traffic it receives. 200,000+ Unique visitors per month, over 1million total page views per month, plus requires no advertisement to receive these numbers, because the traffic comes from my other site, site2.com, which will STILL be promoting site1.com - even after I sell it. Good deal huh? It should increase the value of the site by a lot. Anyone experienced, please respond with the amount of money you would try to sell site1.com for. Now my next question.

Let's say I don't want to sell site1.com, I just want to make some money by selling some text link advertisements on my page. The advertisers must pay PER YEAR, not CPM, CPC, or none of that. You pay by the year. 200,000+ Unique visitors per month, over 1million total page views per month - how much would each of you charge each site to put a text link on site1.com for 1 year? The more responses, the more I learn. I appreciate your time & look forward to seeing the amounts some of you come up with.

Brazzell Marketing · 03-25-2006, 11:59 AM

Hey 1001,

The best answer to your question is very complex and has to do with interplay between how hard you will sell the advertising, what your competition is doing, the demographic / psychographic profile of your visitors etc. The simple answer is just put yourself in your customer's shoes. Try to think of how many click throughs they should receive and how many would convert into sales. How much would it be worth to them to make those sales. From that you determine your price. Like you said, there's no system.

I should point out that, unless your fee is remarkably low, you will find it easier to sell advertising in monthly and quarterly packages. At my marketing agency, I would tend to steer clients away from large annual investments with no out - especially if it is an upfront investment. However, I wouldn't mind trying a new medium for one month or a quarter, even if the price is higher. After the medium has proved itself for the particular client, then I would look at budgeting an annual investment providing that the advertising seller gives me a nice discount for the annual investment. In other words, to attract new advertisers, offer monthly and quarterly packages that cost more than the annual package.

myname1001 · 03-25-2006, 01:15 PM

LOL. nah man it aint as complex as you makin it. I was lookin for an estimated range not an exact number, I should of said that my bad. The way I see it, the only thing that should matter when determining the price PER YEAR, is 1) Site content & percents of the type of people who visit the site and things of that nature 2) Total UNIQUE visitors per month, and total pageviews per month 3) Amount of money the site itself profits per month. Besides other more minor things, those are the main 3

and there is no "right" or "better" way to sell advertising, people and companys both small to multimillion make different amounts of money using different methods...but the fact is: there are MILLIONS of websites who would pay to be on a web site getting 200,000 and up unique visitors per month and rising, and almost 2 million total page views per month and rising, provided they were provided with the other 3 main things that make up a sites advertisement value when charging by the year. the demographic aint a thing, especially with the type of sites i'll be dealing with.

People tend to make things too difficult is what i've learned.

it all boils down to the fact that:

1,000,000 total page views per month = over $50,000 [no matter what the details and factors are that come into play]
250,000 unique visitors per month = lots of $

that's all you had to say dude.

myname1001 · 03-25-2006, 01:18 PM

Note: those $ amounts are sellable value not advertisement value.

Chris1974 · 03-25-2006, 03:07 PM

In all honesty I dont think your ever going to get an informative answer to this question until you stop referring to your sites as site1 and site2. People need to know what your sites are about and the type of content they have in order to give you a fair and appropriate answer to your questions.

Brazzell Marketing · 03-27-2006, 04:11 PM

It's good to LOL! While you have a lot to offer, just understand that your offer does not exist in a vacuum. For instance, small market print advertising typically costs about 2 cents per impression. Your advertising may be similarly valuable to certain businesses because you will offer an on-line audience. Based on the numbers you gave, were you planning on charging your advertisers $20,000 per year? Your site may be worth that to the right advertiser, but this will require a very professional sales effort capable of reaching an elite group of marketing directors. This goes back to my explanation of how you intend to sell the advertising affects the price you can charge. Regardless, I am sure you will do well with this effort, even if it requires some fine tuning as you go. Good hunting!

-Gary
www.BrazzellMarketing.com

Brazzell Marketing · 03-27-2006, 04:17 PM

Woops, correction. I should have said $20,000 per month since you are offering 1M page views per month.

Dustin07 · 03-27-2006, 04:55 PM

I think you are more likely to make money selling advertising then selling the site. I for one would not pay much for a site that received all of it's visitors from another site. This doesn't mean that site1 is bad... but there is no garantee that the gravey train will continue.

You could sell advertising and make a lot more monthly over yearly, IMO.