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How do you figure out what to charge?

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He has: 83 posts

Joined: Feb 2005

pertaining to charging for advertising on a site...

How does one decide how much to charge per click on a banner?

Im sure it has all to do with members/unique visitors. If thats the case what is a good formula to use?

robfenn's picture
Developer

He has: 468 posts

Joined: Jun 2005

Yes, that's basically it. If you look around for advertising resellers you will get an idea of cost. To make money you want 100,000 hits a month at least.

Ideally you want to have complete tracking of your website. Details like where people are based could be important.

-Rob

Megan's picture
Administrator

She has: 10,288 posts

Joined: Jun 1999

robfenn wrote: Ideally you want to have complete tracking of your website. Details like where people are based could be important.

And demographic group too (age, gender etc.). Although we don't provide any information like that and haven't had much of a problem selling advertising.

I find it much easier to sell just by the month or whatever because then you don't have to worry about what happens when the number of impressions you've sold runs out (and then people see a bunch of default ads all the time). In that model I would also be concerned about the advertisers getting the best distribution of impressions for the amount they're paying.

But you're charging per click?? That's a little different because it's more independent of the amount of traffic you're getting. Would you be displaying unlimited impressions and then charging by the click? I'm not sure how that would work.

There is no set formula for these things. It all depends on your site topic and what the market will bear. You'd have a harder time selling advertising on a small niche site than on a popular topic where there are lots of potential advertisers (like web design). Check around at other sites similar to yours and see what they are charging (if that information is available).

And that's all I know about advertising Wink

JeevesBond's picture
Moderator

He has: 3,710 posts

Joined: Jun 2002

robfenn wrote: 100,000 hits a month at least.

Would that be hits or visitors?

He has: 83 posts

Joined: Feb 2005

Per click was just an example I guess. It really wasn't what my plan was. I like the per month thing alot better to, and thats the route Id probably go.

There are some sites like mine, but the places are dead or not very active so I cant really compare. Although it really isn't a niche, for some reason there are not many online communities like the one I've created.

As of right now Im not ready to sell advertising so I have awhile to figure things out yet Smiling

My second delima is tracking the traffic. The one that comes with the hosting(godaddy) has alot of info but seems to be missing the most important features, unique hits, paths, etc...

I put a statscounter on the site last week and that one is nice, I'll probably end up getting the paid version unless I can get in on the google analytics one by then.

robfenn's picture
Developer

He has: 468 posts

Joined: Jun 2005

You could just set up Adsense. I've never used it personally but i presume you get a monthly payment? Then you could take Adsense down and charge whatever you got from that.

PPC is best for the advertiser but will be harder for you to set up obviously!

-Rob

He has: 83 posts

Joined: Feb 2005

I do have adsense right now. Just got it going a couple days ago. We'll see how that goes. Right now the links are about 50/50 relevant.

Has anyone really had that much success with adsense? or any type of program like that.

I know I've only clicked on them a couple times throughout the sites I visit so I dont know how many people actually look at that stuff. At any rate, I guess we will see what happens Smiling