[turbocivic16]

It's lengthy, so only read if your interested in helping out.


So, some of you may have seen my posts about "my" site Clays Ferry Cycles - Home Page . To clear things up, I designed and built Clays Ferry Cycles for the company back home, for pay of course, and now it is my responsibility to market it. Bascially I guess you could call me the webmaster/director of marketing for the site. So, that being said I have a few questions:

1.) I have not set down with the owner and discussed pay for my services when it comes to marketing the site. I have a pretty solid business plan, which will require alot of my time and effort so how do I charge for this? Should I charge by the hour, or by the results? If I charge by the results, should I charge by sale, or by click?


2.) I have got alot of quote from top ATV forums, and they charge alot more than I expected, but I think I may have a nice budget to work with but for purposes of explaining which advertiser my client should go with what kind of business model should I use, what I mean is what should I tell him he can expect from advertising with this source.

For example, atvrideronline.com charges 6,000.00 for 6 months for a banner which promises 452,000 impressions over the course of the half year (spread out equally). So what can be an expected percentage click rate from that, and from the click rate what can be an expected transaction rate? I thought about telling him to assume of the 452,000 impressions, 10 percent would click the ad which would mean 45,200 hits on the site from atvrideronline and of that 45,200 telling him maybe 5 percent would make a transaction meaning 2260 people would buy something (and at a pre-determined average profit per item I could tell him that he could expect to make approx. $79,100.00 from the ad campaign with this particular advertiser)

Is this wrong to assume, or too high or possibly low from that amount of impressions (take to mind that the site is a direct relation to the product (ATV NEWS SITE ADVERTISING ATV PARTS AND ACCESSORIES) )

So, if someone could help me out with what/how I should charge and what/how I should explain to him expected benefit from ad campaign I would greatly appreciate it!

Thanks,
Josh Stamper

[GuyBBY]

For one- you may want to suggest contracts and agreements to confirm whatever you decide.

1. I would think about what is going to be the biggest guage of you doing your job. If it is only clicks then I would say by numbers of that nature, but that would typically apply to a site that requires high traffice to bring in revenue for ad's/ppc/etc...not so much one selling products. I would check out percent of sales revenue. If you are making 10-20% sales revenue, you will work harder and they will be gaining a dedicated worker who must prove results for their pay.

2. Not too familiar with this particular topic/industry.

Hope this helped a bit.

Guy

[turbocivic16]

I thought about asking for a percent of commission, but this guy started his company when he was 18 on ebay, and now make a killing and is looking to make money online too but just has limited abilities and knowledge...asking for a percent of sale seems like alot at first-

you know saying I want 10 percent of all sales over 8.00 an hour seems drastic even though it may be the least expensive option...I'm not sure what to do...I guess part of it is me being afraid to ask, but I'm going to be participating in forums on their behalf (atv's are a passion of mine) working the advertising, producing and editing videos and maintaining the site as well...so I think I deserve at least 200 a month..I'm just afraid to say hey give me x amount of dollars, + 3,000 a month for advertising, plus the 5 grand you already gave me to build the site plus all costs of keeping it online and we will HOPE for sales.

[exgeek]

Most online ads have a click through rate of less than 1% and conversion rates on most ecommerce sites are less than 1%. When I try to project results for an online ad campaign for ecommerce I usually project a .25% click-through and .75% conversion. It's not a perfect system and of course these things vary but it tends to give a ballpark.