How much should advertising cost on a website?

[Jake]

"runs about 1,500 people" ? is that a membership count?

Advertisers examine the ratio between the number of impressions and the number of unique visitors, I an accustomed to see something like 2/1.

Looks like your suggesting each person sees 300 impressions?

Prices vary considerably, depending on the quality of the site and the subject matter, some blogs charge $0.50 for 1000 impressions, while authority sites might charge $10 to $40 per 1000 impressions, depending on the ad size and position.

Look at the rates on the site direct selling space on buyads.com or blogads.com