How to calculate pricing for private advertisers

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babyboy808

New Member
About 3 months ago I got an inquiry from a company that wanted to advertise on one of my sites. I did a small bit of "research" and charged them what I thought was fair.

I did so on the basis of my adsense earnings and add 20%. My question to you guys is how would you calculate a flat price per month and what factors would you bring in, (page rank, uniques, pageviews, audience etc)

thanks
 

enzo

New Member
I don't think there's any magic science to it. I started off charging about €25 per month for a link on my site, which was just enough to make it worth my while editing my site but not too much that i'd feel like I was being greedy.
Over time I learned a bit more about what links might be worth and brought this figure up and added some other constraints such as a max number of links allowed plus a minimum number of months that someone would need to advertise for. Now I still charge just enough to make it worth my while (though I think I could charge a lot more) but also enough to drive away time wasters.

To get your starting figure consider:
- no. of visitors/page views
- page rank
- you need to be paid for your time
- some profit
- number of beers the value equates to

Do not:
- agree to permanent links or 'too long' advertising campaigns
- negotiate too much. Set a price and try to stick to it (you can be a little flexible). You may lose advertisers but others will come, speaking from experience.

Hope that helps.
 

TheMenace

New Member
You should also look at what service the advertiser is offering. Let's say they're offering mortgages and make a net profit of 4k for every converted referral. Say they convert an average of 2 referrals a month - that's 8k net profit. You could, in theory, charge a lot more than 25 Europes. It really boils down to what the advertiser is willing to pay and what it's worth to them.
 

RedCardinal

New Member
I know sites that use 1000 p\v for 5-6$ as calculation of a month price.
That's known as CPM - Cost Per Thousand (m) impressions

Depending on the niche some advertisers might pay €20+ CPM (think the mortgage example given by Ken above).

Take care with the link example above - buying and selling links is alot more dangerous now than it was 6 months ago..
 

mneylon

Administrator
Staff member
That might explain why TLA has moved all their affiliate links to Javascript / encoded links
 

glengara

New Member
G are strongly "suggesting" paid links should have their ability to pass PR curtailed through the use of rel=nofollow/JS/redirects.

Few people seem to be taking it seriously though, or at least not yet....
 
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