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Old 07-26-2000, 12:35 AM   #1
St_DropKickMurf
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Exclamation Help!: How do you determin what to charge if someone wants to advertise on your site?

We have an opportunity to sponsor a gaming league website that has a world tournament coming up for a game that we cover. They would like to advertise on our site and are looking for some rate sheets, etc...

Here's the catch, I don't know what to charge. LOL. From the little I have gleamed from various sites in my mad crash course in this industry you guys have been in for awhile, I have seen some general rates, but I have nothing to base it on.

For example. This site lists various Web Ad Rates:
http://www.eboz.com/advice/banner_ad...ad_rates.shtml

Two of those options stood out as possible fits:

Small Targeted Content Sites $10-$80 CPM
Sponsored Content $45-$85 CPM

Now, again, I have NO clue what to charge, but I know that our site WILL drive customers and potential qualifiers to their site to try out for the tourney. I don't want to drive them away with to high of a price, but I also know that if handled properly we could stand to do well if we are paid on a CPM rate.

Could really use some help on this guys as I need to get back to them ASAP.

Argh, I hate not "knowing" this stuff yet. Learning is gun, but the process is over rated. http://geekvillage.com/ubb/smile.gif

Murf



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Old 07-26-2000, 05:31 AM   #2
Ralph Slate
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Start small and work your way up. You can quote rates of $10 CPM all day long, but you won't get it. I would start out with $5 CPM, and if you sell it all out then increase your prices for the new advertisers -- keep the older advertisers at older rates for a while so you're not in the position to gouge people and make them mad.

If you start high, you *might* hit the jackpot someday, but until then you'll be passing up a lot of revenue. You want to find the right balance where you're probably causing 50% of the people to say you're too high and the other 50% of the people will accept.

Posted CPM rates have no bearing on reality.

Ralph

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Old 07-26-2000, 07:29 AM   #3
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What I like to do is offer a little high and then let them make a counter offer. That way if you offer $10 but actually only want $5 and they talk you down to that then they will think that they got a great deal when they are actually giving you what you want.

Selling and buying advertising is just like car dealing. The customer goes in there with a set price that he is willing to pay the most but won't say that amount to the dealer. Likewise, the dealer will have a set price for the lowest price that he will go but won't tell that figure to the customer...
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Old 07-26-2000, 08:45 AM   #4
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Another geektalker hits pay dirt http://geekvillage.com/ubb/smile.gif

Congrats!

How long is the "buy" Months or number of impressions? You wan't to strive for long term relationships. Short term "buys" should be priced even HIGHER than long term. Give them some sort of "indusement" for a longer term. Make sure your terms of payment are crystal clear. Check in hand before the first banners run. Include a "make good" statement. If your site goes down you will adjust accordingly.

HTH

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Old 07-26-2000, 03:43 PM   #5
St_DropKickMurf
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Thanks for the tips guys.

Steve: I understand all of what you said, but have a question on getting the "check" in hand first. Is it appropriate to ask for this first? I guess I would have assumed that delivering the goods (the impressions) first is the starting point, and then getting a check after the first month or something.

I'm still not sure as to what to quote for a rate, basically you guys think $5-10 CPM is the range I guess?

I dunno, they might balk altogether at this. I'll keep you upto date in any event.

Oh, on a completely separate subject, in terms of this site, I was thinking it would be cool to put together a very easily accesible FAQ that answers some basic questions people ask. Also, you could expand into having a complete listing of all known advertisers, their sites, etc...

I know some of this info is on the Parent page to this board, but it's not always easily accesible.
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Old 07-26-2000, 07:28 PM   #6
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One other thing you might consider -- consider selling the ad by the month rather than by the impression, especially if the advertiser is smaller. Most people don't get CPM, and it just raises too many questions (are these 1000 different people, etc.). Give them an idea as to about how many people will see the ad (underestimate a bit so they get a bonus) and price it to your CPM rates, but when you talk to them, if you say "$150 a month" instead of $5 CPM, they will be able to evaluate it better.

Ralph


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