How much should I charge?

DarrenC · 04-17-2006, 04:25 PM

How do you work out how much to charge a company for advertising on a prime spot on your website?

Any help would be appreciated as I have some interest from a few companies looking to advertise.

Thanks,

Darren

**John Scott** · 04-18-2006, 03:00 AM

Supply and demand. Start high and lower it until you get advertisers. If the ad spots fill up, raise your rates.

yfs1 · 04-18-2006, 03:11 AM

Also, be sure to have your all your stats ready to present as it will help with negotiation. They will most likely base the price they are willing to pay on:

1.) Traffic (Uniques are the most important)
2.) Geography of those Uniques
3.) Placement - Will they be above the fold or below
4.) PR (Shouldn't be but it is)
5.) Number of pages indexed if its a sitewide

There are two types of "advertising" buyers - Those after conversions and those after SEO benefits. Try to gauge which this guy is and tailor your price to that.

DarrenC · 04-18-2006, 05:06 AM

Thanks guys.

Good to see you on V7N yfs1.

One is a travel insurance company and the other is holiday car hire company, so my visitors are their targeted audience. The page is on PR5 so I think it's unlikely that it'll be for SEO purposes that they want to advertise.

I worked out that even if 0.5% of my visitors take insurance out with them I'd be generating them £250.00 + a day based on the prices on their own website.

I think John is right - aim high and then see where that gets me.

Would you offer monthly or annual advertising?

yfs1 · 04-18-2006, 05:31 AM

Quote:

Originally Posted by DarrenC

Would you offer monthly or annual advertising?

I would offer it as monthly in excess of what you want to get then offer 6 month and 12 month prepaid options.

The 12 month should be the actual amount you are looking to get. You can then negotiate from there (If your number of visitors is on an upward trend, it will definately give you more power for the 12 month deal)

Personally I would never go past 12 month as things can get a bit sketchy from there on both sides. And not that you are considering it but never offer a lifetime link)

PS. Hey wwh

DarrenC · 04-18-2006, 07:16 AM

Thanks yfs1

I've gone for a monthly value with a minimum advertising period as 3 months.

Then asked them to contact me if they want the rates for 6 or 12 months advertising.

Guess it's just trail and error and see if the rates work out.

Darren

cimmeron · 04-18-2006, 02:14 PM

I'd go monthly with a 3 month contract. You might find that you actually want to RAISE your rates by then and you shouldn't lock yourself in, if you don't have to.

And as for what to charge, the key is exactly what was said: start high and find out what people are willing to pay.