September 19, 2017, 07:30:17 AM

Author Topic: when to start paid advertising  (Read 2588 times)

greatnorthernprepper

  • Apprentice
  • **
  • Posts: 78
  • Karma: +3/-0
    • View Profile
when to start paid advertising
« on: June 13, 2012, 03:13:58 PM »
Currently i have one "advertiser" a small business that i give the first spot for free because i like his product and want to help him out

I also use 1 google adsense and 2 linkshare icons

The advertiser does say alot of folks come to his site and order through mine.

Another company has approached me and wants to enter into a 6 month trial contract.  I was wondering as to what i should "charge" for the contract

I had promised them 1 200x200 banner, and a few hyperlinks throughout a related section as well as at least two blog posts over the next six months with a related topic that i link them to.

I was planning on doing the sections and the posts before, but it was a selling point.

i was thinking of $35 per month with 25 for the first month (since the page i promised is still underway and will take max 30 more days to complete).

but then i was thinking maybe im underbidding myself and promising the 2nd spot for too little?

mostly i was asking because jack had mentioned that he waited a year before he started paid advertising, and i dont want to jump the gun.  the company in question approached myself first, and i also told them that i would be doing a review of the product and if its crap i wont advertise them, and if i get any complaints about their products and it seems to be a common occurence i will cancel the contract immediately.  I have written up a contract as well, and if you want i can upload that here.

thanks

benfitts

  • Entrepreneur
  • Administrator
  • Mentor
  • *****
  • Posts: 209
  • Karma: +20/-0
  • Living the life of my dreams NOW, not later.
    • MSN Messenger - benjaminfitts@hotmail.com
    • AOL Instant Messenger - BenjaminFitts
    • View Profile
    • Custom Greeting Cards
    • Email
Re: when to start paid advertising
« Reply #1 on: June 16, 2012, 11:50:00 AM »
I think you have to consider a few things.

How much traffic do you have to your site?   How many readers/viewers/listeners?

At a 1% clickthrough rate on the ad how many clicks would the advertiser receive? (1 out of every 100 viewers clicks the ad)

If the ad sales are 5% of the total number of visitors purchase... then the advertiser needs 20 people to click through on their ad to make 1 sale.

Are you tracking why this is important to understand?

If you have 10,000 visitors a week... and you get a 1% clickthrough... that means 100 clicks a week on the ad... and hopefully the advertiser is getting 5 sales a week. 

If the advertiser is only selling 1% of the total visitors then that means they need 100 clicks on the ad just to make 1 sale.

Combine that with how much is the product the advertiser selling?

If they make $200 per sale and you charge them $35 per month for example... That means they're paying you $210 for a 6 month ad spot.  Then they need to make 2 sales or more for the ad to be worth it to them... Obviously they want to make even more sales than that but I'm just giving you an idea of some things to think about.  If they sell a $20 product they need to be making a lot more sales for it to be worthwhile.

What is a win / win scenario for you?  At what point is the advertiser getting the ad affordably enough that they make money, but you're also getting the maximum you can get for your ad.

Also look at other blogs in your niche and see what they charge.

If you only have 1 advertiser it's a little hard to price.  You can always tell them since this is a trial and your site is still new you will give them a discounted rate.  Let them know that you expect the rate will go up in 6 months because you are expecting your site to continue to grow and therefore you'll have more viewers/readers/subscribers in 6 months.  You can also let them know you are giving them a discount because you are hoping they can be your first success story and can be a testimonial on your advertising page.
Benjamin Fitts
877-BEN-FITTS
Membership Site Experts
Send Out Cards

greatnorthernprepper

  • Apprentice
  • **
  • Posts: 78
  • Karma: +3/-0
    • View Profile
Re: when to start paid advertising
« Reply #2 on: June 18, 2012, 12:24:33 PM »
I probably get around 800-1000 visitors a week, and the 1 advertiser i have now i dont charge because its just a help out type of deal, and he has said that he has gotten quite a few orders coming from the site. 

The emergency preparedness CTR is .64 on linkshare
my amazon which is have a book list section and different item throughout pages have a 49% conversion rate thus far.

the new advertiser approached me, and i quoted him at 35 a month, with a six month trial period, wwith 25 for the first month so for 350 for the total amount.  their products start at the $200 dollar range so even if they sell just two they will get more than the ad costs, plus the links.

I was leery of such an early advertising adventure, perhaps i should do a 6 month at 25, but they have been aggressively emailing me for the last month to see if we could make a deal.  I also said i would have to review  a product first and also reserve the right to cancel the contract if there's anything fishy

benfitts

  • Entrepreneur
  • Administrator
  • Mentor
  • *****
  • Posts: 209
  • Karma: +20/-0
  • Living the life of my dreams NOW, not later.
    • MSN Messenger - benjaminfitts@hotmail.com
    • AOL Instant Messenger - BenjaminFitts
    • View Profile
    • Custom Greeting Cards
    • Email
Re: when to start paid advertising
« Reply #3 on: June 19, 2012, 12:58:42 PM »
If people are asking you for advertising then take it ;)

The problem most people have is they try to sell them to early (or too expensive).  If you have people contacting you then by all means take it.

I think I started at $50 a month but wasn't providing enough value for my advertisers so many of them quit advertising after only a month or two.

I think a 6 month deal like your talking is great because even if you start out slow you can grow the number of clicks and sales over time and keep the advertiser happy.
Benjamin Fitts
877-BEN-FITTS
Membership Site Experts
Send Out Cards