Young Entrepreneur Forums  
en·tre·pre·neur –noun Entrepreneur, translated from its French roots, means "one who undertakes." The term Entrepreneur is used to refer to anyone who undertakes the organization and management of an enterprise involving independence and risk as well as the opportunity for profit.
Find Qualified Vendors
 

Welcome to the Young Entrepreneur Forums

   
NBTL NBTR

Find Business Partners Get Involved in Startups Commercial Real Estate Startup Jobs Find Business Opportunities


Young Entrepreneur Forums » General Internet » General Internet » What to Charge for Advertising?



Reply
 
LinkBack Thread Tools Rate Thread Display Modes
Old 07-22-2005, 01:21 PM   #1 (permalink)
Senior Members
Activity Longevity
0/20 13/20
Today Posts
0/0 sssssss84
Location: Ontario, Canada
What to Charge for Advertising?

Hello,

I am just wondering if there is some kind of formula to figure out how much to charge for advertising on your web site.

i.e. (Traffic flow / XXXX = $$$$$$)

If there isn't would someone be able to give me a ball park figure for different amounts of traffic flow.

Thanks,

Casey
__________________
Creativity is the key to the best ideas of all. The more creative you are though, the more people think the idea is too far fetched. - Casey Bowman

My main purpose in life is to make money so I can afford to go on creating more inventions(businesses).... -- Thomas Edison


Bowmania is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Spurl this Post!Reddit! Wong this Post!
Reply With Quote
Old 07-23-2005, 11:36 AM   #2 (permalink)
Senior Member
gambit's Avatar
Activity Longevity
0/20 15/20
Today Posts
0/0 ssssss465
Location: toronto, ontario, canada
Send a message via MSN to gambit Send a message via Yahoo to gambit
I don't know what kind of website do you run but I suggest to search at your competitors if not, you can probably look at your monthly expense and multiply that by two.


My friend has 4 million visitors each month and he charged $45 per month for a 125x125 banners. For a standard banner, it will be $60.
gambit is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Spurl this Post!Reddit! Wong this Post!
Reply With Quote
Old 07-23-2005, 03:29 PM   #3 (permalink)
Senior Members
mpnetwork's Avatar
Activity Longevity
0/20 17/20
Today Posts
0/0 ssssss443
Location: Ontario
Depends on the value of your visitors.

1. Ask yourself "if I send someone to an advertisers web site, and they place an order, how much does the advertiser make?"

-- say they make $10 per order

2. How many people do I need to send to the advertisers web site before someone places an order? (Say 2% order)

-- $10 per 50 visitors

3. How many ads need to be shown to send 1 visitor to the advertisers web site? (Say 100)

-- $10 per 5000 impressions
-- $2 per 1000 impressions

Therefore, based on this estimate, your advertisers can expect to make around $2 per 1000 impressions, so to ensure they make a profit, you could resonably charge $.50 per 1000 impressions.

This formula should give you a starting point, of course securing advertisers can be difficult, so you may need to discount your ad rates accordingly. As well, factors like age, income, your web site's topic, etc. will change some of the numbers above.
__________________
Don't go around saying that the world owes you a living. The world owes you nothing. It was here first. -Mark Twain.
mpnetwork is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Spurl this Post!Reddit! Wong this Post!
Reply With Quote
Old 07-23-2005, 10:52 PM   #4 (permalink)
Senior Members
BetterEdit.com's Avatar
Activity Longevity
0/20 16/20
Today Posts
0/0 ssssss161
Location: Brisbane & Toronto
Re: What to Charge for Advertising?

This may sound a bit simple but what you can charge for advertising is equal to whatever the advertiser is willing to pay.

So the logical thing to do is think like an advertiser - why would they want to advertise on your site? How can you provide enough value that they would be willing to pay you.

In my opinion the best way to figure out how much to charge is to just make something up at a monthly rate and see if anyone bites. If you have excess demand increase the price, if you have no demand drop the price.

See this article for more details - How to Make Money from Your Website Using Advertising.
__________________
-- Yaro Starak

Insider Secrets! -- I made $9358 in Sept 2005 from web business.
Download how-to articles & audio from my blog Entrepreneur's Journey

Last edited by BetterEdit.com; 07-23-2005 at 10:55 PM.
BetterEdit.com is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Spurl this Post!Reddit! Wong this Post!
Reply With Quote
Old 07-23-2005, 11:00 PM   #5 (permalink)
Senior Member
gambit's Avatar
Activity Longevity
0/20 15/20
Today Posts
0/0 ssssss465
Location: toronto, ontario, canada
Send a message via MSN to gambit Send a message via Yahoo to gambit
Re: Re: What to Charge for Advertising?

Very smart solutions! My father told me about this solutions but didn't listen to him at first. Very good Yaz!

[quote]Originally posted by BetterEdit.com
This may sound a bit simple but what you can charge for advertising is equal to whatever the advertiser is willing to pay.

So the logical thing to do is think like an advertiser - why would they want to advertise on your site? How can you provide enough value that they would be willing to pay you.

In my opinion the best way to figure out how much to charge is to just make something up at a monthly rate and see if anyone bites. If you have excess demand increase the price, if you have no demand drop the price.

See this article for more details - How to Make Money from Your Website sing Advertising.
[/QU
OTE]
gambit is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Spurl this Post!Reddit! Wong this Post!
Reply With Quote
Reply


Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Navigation
Register! - Join Now - It's Free
Registration at YoungEntrepreneur.com is completely free and takes only a few seconds. By registering you'll gain:

- Full Posting Privileges.
- Access to Private Messaging.
- Optional Email Notification.
- Ability to Fully Participate.

To Register now click here
Quick Register - It's Free
User Name:
Password:
Confirm Password:
Email:
Confirm Email:
Birthday:  
Check to Agree with the forum rules. 
Need Business Services?
Looking for Quotes?

LFQ

Choose a category:

Latest updates from the YE blog!
Premium Memberships
We will soon be offering a Premium Membership with added benefits and access to exclusive services, support and solutions. To be informed on when this launches click here
Forum Sponsors


Legal Forms

Click here to inquire about advertising
SEO by vBSEO 3.2.0
Powered by vBulletin® Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.
Copyright 2007 YoungEntrepreneur.com Inc. / YoungEntrepreneur.com : Entrepreneur Marketing Forum