How to calculate pricing for private advertisers

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babyboy808

babyboy808

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
 
E

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.
 
T

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.
 
R

RedCardinal

New Member
skiff said:
I know sites that use 1000 p\v for 5-6$ as calculation of a month price.
Click to expand...
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

mneylon

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